For a British or Irish person the first thing to realise is that the French mortgage market is completely different to the mortgage markets in Britain or Ireland.
Consumer protection legislation and inertia have allowed the market to remain well behind the English-speaking markets in terms of both competition to lend and product availability. It is also worth noting levels of both personal indebtedness and salaries are lower in France.

Finding a good intermediary (broker) is essential for the best deals. The major banks respond well to the broker market and will negotiate lower pricing with ‘introducers’ who bring them business in sufficient quantity and quality. This means that a good intermediary can get you better deals than those available by direct approach to the banks. If you choose a broker who does not charge you a fee then you have nothing to lose and everything to gain.

By the same token the market is small and you should not need a second broker if the first is competent. Using more than one broker may just mean your name will go twice to the same banks and this devalues the negotiating process and weakens your hand in all respects.

Generally, banks will fully comply with the guidelines in place which means that your aggregate monthly repayments (adding together the prospective French mortgage, UK mortgage, car loans etc) must not exceed one third of your gross income. Many banks will stretch these vague guidelines – but only so far – so you need a broker who knows the different banks and their advisers intimately and uses agencies which are hungry for business.

Proven income from full time employment or pensions and a percentage of investment and/or rental income are taken into account. Once again, different rules apply at different banks (and indeed different branches) so a well-connected intermediary can be a useful ally.

If you have UK or overseas buy-to-let property already, be aware this is not easily compatible with the permitted lending ratios and this could easily disqualify your application. Once again a well-connected intermediary can help you through the minefield.

Loan-to-value ratios are much tighter than in Britain or Ireland. The standard maximum was 70% until recently and is now 80% of current valuation with the majority of banks. However, some banks and in some circumstances can permit lending up to 85% or 90% of property valuation.

In some rare combinations of circumstances it is possible to get 100% mortgages but these are only for smaller leaseback properties and not available for straightforward freehold purchases.

Many clients want an interest-only loan arrangement and these are not readily available. Those that are available fall into three categories:

(a) ‘Pure interest only’ loans (with no built-in principal repayment mechanism) are usually only available for higher-net-worth individuals who have other assets to liquidate in need. This is partly because, in essence, they are counter to the consumer protection legislation.

(b) ‘Hybrid products’ which allow an interest-only phase followed by an accelerated repayment phase. One problem here is that the repayment ratios are calculated on the repayments for the accelerated repayment phase, which may compromise your eligibility for the loan. However, for some dossiers these are suitable and flexible products.

(c) Investment linked products which are very broadly equivalent to UK endowment style mortgages. Usually these are linked to cautiously invested life insurance style investments.

Leaseback investment refers to the scheme in place under French government auspices which encourages foreign investment in holiday accommodation. Generally speaking you can claim back the 19.6 % TVA on certain new properties provided that at the time of purchase the property is leased back (usually for about a decade) to an approved management company under the scheme in order to increase the volume of available holiday lets in the area.

Relatively few banks lend into this market and each has its own ‘approved list’ of builders, managers and locations. You will therefore find a huge amount of work to narrow down this field unless you employ an intermediary who knows the banks’ different criteria.

BE PREPARED. There is no such thing as self-certification in this market and any bank will demand proof of sustainable income, recent bank statements and sometimes a ‘laundy list’ of other supporting documentation. Be patient with the banks, they are obliged to create a dossier which bears independent examination to ensure they are no over-extending you.

Don’t become impatient if you are making slow progress and do take the trouble to speak to your mortgage adviser at the bank and and develop a rapport. Humans respond to humans.

A professional intermediary will take into account your language skills when introducing you to a bank and individual mortgage adviser. If your French is not completely fluent, now is not the time to practice it since you may be making one of the biggest investments of your life. Good brokers will spend much of their time ensuring good relations with banks and hand-picking English-speaking mortgage advisers to handle their clients’ dossiers.

This page was kindly prepared by Mr. Paul Cronk  at

Please feel free to contact Paul for any advice concerning financing your property in France.

The sequence of events – managing the process.

First, carefully examine the alternative mortgages on offer with the help of your chosen intermediary.  Obtain a mortgage illustration and be sure this fits your budget. Agree your preferred choice of mortgage lender.  Be sure you will obtain after sales service in English, unless you are fluent in French.

Appoint a notary (notaire). The vendor and/or estate agent (immobilier) will usually suggest one, and it is normal practice to have one notary oversee the sale. However, you may choose your own English speaking notary if you wish and the fees may be apportioned. Some clients prefer to appoint an English solicitor to advise them. 

Sign the preliminary sales agreement (compromis de vente).  A deposit (usually 10%) is required at this stage. Be sure to insert a clause in the agreement (clause suspensive) stating that it is subject to mortgage acceptance.  This is to protect you from losing your deposit if you are unable to obtain the mortgage required.

The delay between the preliminary sales agreement and the completion of the deed of sale (acte authentique de vente) may be between one and three months.
It is invariably advisable to leave more time than you first consider necessary so leave three months if you can and leave minimum one month to obtain the mortgage offer.

Complete the mortgage application and life insurance forms.  Forward these direct to the lending bank together with any supporting documentation required by the bank. 
The bank’s mortgage adviser is your ally. Be patient - his job is to prepare your file comprehensively before presenting it for approval by the bank’s lending committee.

After processing your application, the bank will issue you with a mortgage offer and may simultaneously send a copy to the notary.  Wait at least 10 days but no more than 30 before accepting the offer.  Sign the documents and return them to the bank, observing any instructions given with regard to the statutory cooling-off period.

Open a French bank account. The lending bank will usually advise you on this, but not invariably.  A good choice is often the local bank in your town or village. A € account with a British bank will not do – there are still different cheque clearing systems, and a € cheque drawn on a British bank may take 5 weeks or more to clear.

Your notary will request the mortgage funds from the bank and will require the balance of funds and all fees and other payments from you. Sign the relevant documentation at the notary’s office and take ownership of your French home.
In the excitement, don’t forget to ask the vendor how things work in your new home !

This page was kindly prepared by Mr. Paul Cronk  at

Please feel free to contact Paul for any advice concerning financing your property in France.