France Mortgage Rates

Summary: Looking at how an overseas buyer can secure attractive and competitive France mortgage rates for their French property

If you’re buying a property in your own home country it can be very easy to compare mortgage products between providers and also mortgage rates, charges, maximum loan percentages and even the terms of the mortgage.  But when buying real estate abroad it can be so much harder to know whether a deal you’ve found is competitive and even if it can be secured by you based on your personal criteria and situation.

France is no exception to this problem and in France mortgage rates differ between lenders, they differ based on the mortgage product you apply for and even worse – French mortgage rates differ greatly if you’re a foreign buyer and you have no credit history in France.  So – how on earth do you get round all these issues?  Read on to find out!

At the time of writing this I can tell you that of the seven major property related lenders in France there is currently a difference of over 0.55% between their best mortgage rates, a difference of 15% in terms of the maximum loan to value rate they will offer, a huge variation in terms of their fees and even up to a 5 year disparity in terms of the duration of a French mortgage available from them.

All of these differences are only on their most competitive mortgage products as well – when you start digging a little deeper and looking at France mortgage rates available for non-resident buyers or purchasers with little or no French credit history, the dissimilarities in the types and availability of products available is confusing to say the very least.

Bearing all this in mind and then putting it into the context of the fact that British property buyers are extremely hot on French property you can immediately see that there is a very large problem facing British buyers seeking finance to secure their ideal property in France. 

The dilemma is - do they try and get a UK based remortgage which will subject them to sterling interest rates which are historically higher than euro mortgage rates (remember you buy real estate in France in euros not pounds), which will also mean their principal residence is at risk if they cannot keep up repayments and which will mean as well that they have a currency risk when getting the money in pounds and transferring it to France in euros?

If the British buyer doesn’t fancy this less than perfect approach what other avenues are available to them if they are to secure the best France mortgage rates?  Clearly they’ll struggle to get a mortgage locally in France with no credit history and no understanding of what constitutes a good mortgage deal…

The answer is of course to approach an international lender who has both a presence in the UK and a presence in France, who is therefore under the maximum pressure to ensure mortgages available in France are highly competitive for British buyers and who can make the entire raising a mortgage and buying a property process simple for their international client base.

We recommend you contact Barclays Bank if you want French mortgage rates that are competitive and you want fully comprehensive advice about all the options that are available to you.  Not only does Barclays have such a strong presence in the UK, it has over 80 years experience locally in France as well, it has an extensive network of branches in both countries and if you click here and complete Barclays contact form they will immediately get in touch and do their absolute best to help you arrange a mortgage with competitive and attractive France mortgage rates. 

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