RBL ESTATES MORTGAGES IN FRANCE

It is generally very straightforward to receive a mortgage to purchase your property in France. French banks operate in a similar way to Irish banks in their requirements i.e. Proof of income, Financial standing and credit history.

Currently you can obtain up to 85% of the property value and have a mortgage term up to 30 years. French loans can be arranged with interest rates ranging from variable to tracker rates; from short term to long term fixed and with interest only or repayment option of capital and interest or a mix of both. French banks are very interesting with their variety of loan products compared to Ireland.

The application for a mortgage usually takes between two and three weeks and can be done by post or phone you will only need to visit the bank once in this process for Identification requirements.

If you take out a mortgage in France and this includes regular stage payments you are protected by French law by guaranteeing these payments in the event the developer cannot complete the development, the bank will appoint a new developer to complete project.

RBL FINANCIAL SERVICE SOLUTIONS will arrange a French mortgage for you anywhere in France. You do not have to purchase a property through us to avail of this service.

LOANS

There are two main categories of loans available in the French banking system: Property loans and Consumer loans.

PROPERTY LOANS

Available:

• To buy an existing property
• To buy a property not yet built
• To buy a plot of land
• To build a property on an existing plot of land
• To carry out work on an existing property e.g. extension, swimming pool etc.

Taking a loan to buy a property is difficult at the best of times but if you are in a foreign country and don't speak the language it may seem impossible. Consequently, people often arrange their borrowing in their home country where interest rates are a lot higher than in France.

We can run you through the whole procedure in English with backup documentation.

HOW TO PROCEED

Give us a ring or pop in to see us. We will discuss your project with you to see which is the most suitable lending structure and provide you a checklist of documents you will need to provide, a summary of lending criteria and an application form in English. The documents can be completed in English and returned to us.

KEEP IT SIMPLE

We endeavor to simplify the whole procedure for you by explaining the French system concerning the registering of a mortgage, notary fees, stamp duty, life insurance etc. We can recommend an Irish based legal firm who speak French and who will also discuss and advise on matters such as French inheritance tax laws, making of will and translation services.

Fixed rate

The rate is fixed at the outset for the whole period of the loan and will depend upon the amount borrowed and the personal contribution to the acquisition. There are penalties of varying amounts among the banks for partial or total repayments before the end of term of the loan, even in the case of a sale.

Variable rate

The rate varies monthly or quarterly. The index is the “Euribor” i.e. European inter-bank lending rate, which is determined on a daily basis by the Banque Centrale Européenne.

REPAYMENTS

In general practice repayments are of capital and interest so that the debt is fully repaid by the end of its term on an annuity basis. French banks are very proactive with loan affordability. When interest rates are rising, they will adjust the loan term within a cap of 5 years to ensure repayments don’t get too high and reduce the term back down when rates fall again. They will still ensure that the loan is repaid inside the scheduled term.

SECURITY

In general practice:

Mortgage inscription + Life insurance cover by way of a policy. The application forms for the insurance have been translated and can be completed in English. With some banks, no medical is required for loans under Euros 240.000.
Exceptionally we can accept the delegation of an existing policy provided it has been drawn up under French law.

TAX ADVANTAGES

Buy to Let investors can ensure that they maximize the tax benefit of offsetting mortgage interest against the rental income as an expense to reduce income tax in France. Therefore it is important to raise the finance in France, this making the transaction more efficient. The rent can be lodged into the same bank from which the loan repayments are debited.

Housing Insurance - Available through the banks.

Other possibilities - Buy back a loan from another bank

• Bridging finance
• Lending to an SCI for Inheritance tax purposes

AFTER SERVICE

All the banks we work with - Banque Populaire, Conseille Patrimoine, Credit Foncier, GE Moneybank, BNP Paribas & Credit Lyonnais all offer a full after service in English, rarely available from other establishments in France.

You do not have to purchase a French property with RBL for us to arrange your mortgage for you. This service is independent of the purchase.