French interest rates are at historic lows so it is an ideal time to take out a loan to buy your dream home.
But do be aware that French mortgages work differently to the UK. To give you a few pointers, banks work out affordability using earnings multiples. Different banks have different lending criteria and different products. If you are self-employed, French lenders can only consider income that is visible on your tax returns so efficient tax planning can impact your borrowing ability!
French lenders will want to see that you are not stretching yourself too far financially – overdrafts and credit cards aren’t widely used either. Beware that re-mortgaging expensive in France so make sure you find the right product – and that life insurance if often mandatory.
If you would like some help with a French mortgage, please email us at: email@example.com