Introduction
Many people don’t realise it, but you can apply for a mortgage in France as a foreigner or non-resident. Upscore is here to help you navigate this process, making your dream of owning a property in France a reality.
Why Consider a Mortgage in France?
France offers a unique blend of culture, history, and beauty. From the romantic streets of Paris to the sunny beaches of the Côte d’Azur, France has something for everyone. The country’s high quality of life, excellent healthcare system, and rich culinary traditions make it an attractive destination for property investment.
Requirements for a Mortgage in France
Although it will depend on your current circumstances and the terms will vary per lender, here is a guidance:
- Minimum Deposit: 30% of the property value.
- Minimum Property Value: €100,000.
- Minimum Loan Amount: €100,000.
- Employment Status: Employed for at least 2 years or self-employed for 3 years.
- Documentation: Valid passport, proof of income (employment contracts, recent pay slips, and tax forms), recent bank statements, and credit report from your home country.
Mortgages can be used for residential purposes, second homes, or buy-to-let investments.
Step-by-Step Process
Prepare Your Documents: Gather essential documents such as your passport, proof of income, bank statements, credit report, and proof of deposit. This paperwork is crucial for proving your financial stability and credibility to French lenders.
Get Mortgage Agreement in Principle (AIP): A Mortgage Agreement in Principle (AIP) is a formal offer from a mortgage lender (usually a bank) that sets out the terms of your mortgage, such as the loan amount, duration, and interest rate. It is usually valid for 3 to 6 months, providing you with the security to start your property search with confidence, knowing you have financial backing to make an offer when you find the right property. This ensures you don’t miss out on opportunities. You are not obligated to finalise the AIP, and if it expires, you will need to renegotiate the terms with the lender. At Upscore we can help you to find the right lender, contact us for more information.
Open a Bank Account: Opening a French bank account is essential for property transactions.
Find a Property: Conduct thorough research to find the ideal property. Whether you prefer a Parisian apartment or a countryside chateau, narrowing down your options will save time and effort.
Secure Property Documentation: Ensure all necessary documents like property deeds and energy certificates are up-to-date. This step includes verifying that the property has no debts or legal issues attached to it. If you secure a mortgage, the lender will help with this step.
Complete the transaction: You will need to meet with the seller and the lender in front of a notary to sign. After that, you can enjoy your property right away! There is some admin left afterwards such as registering the mortgage in the council, but the lender should be able to help.
Interest Rates and Terms
French mortgages typically come in fixed-rate and variable-rate formats. Fixed-rate mortgages offer stability with a consistent interest rate over the term of the loan, usually 15 to 25 years. Variable-rate mortgages offer lower initial rates that adjust periodically based on market conditions.
Trends and Statistics
Since the onset of COVID-19, there has been a noticeable increase in foreign buyers looking for property in France. This surge is driven by trends such as remote working, early retirement, and the quest for a better quality of life. Popular regions include Provence, Normandy, and the French Riviera.
The Role of Upscore
Navigating the mortgage process can be complex, but that’s where Upscore steps in. We provide personalised assistance to ensure you meet all requirements and successfully secure a mortgage. Our team is dedicated to helping you realise your dream of owning property in France, offering expert advice and support every step of the way.
Ready to make your French property dream a reality? Contact Upscore today. Let us help you turn your dream into a beautiful French home.
