Getting a French Mortgage
The Basic Calculation - Unlike the UK there is no “lending multiple” criteria in France, rather an affordability ratio based on income and outgoings. The basic ratio is that you cannot have monthly payments on your mortgage + the required insurance which, exceed 33% of your income (gross or net – dependant on the lender).
Outgoings – This refers to all monthly payments such as existing mortgages, credit cards, loans and contracted payments such as rents and maintenance payments. Your normal month-to-month living costs, utility bills, food, clothing, council tax etc., would not be included in the calculation for this purpose.
There are exceptions for higher earners (usually in excess of 75k p/annum) and this can reach as high as 40% in specific cases.
Loan to Value – For non-residents this can be up to 85%, for residents it is possible to achieve a loan of 100% of the property’s value. In either case you will need to fund notaries and agents fees from your own resources.
The expenses of house buying in France are considerably more than the UK. Below are the typical component costs.
· Agents fees — these are typically between 4% and 6% of the purchase price...you the buyer will be paying them, so check they are included in the advertised price.
· Notaires Fees — At around 7% of purchase price, these are strictly controlled by the government and the bulk of the money is stamp duty.
· Insurance—You will be required to take out life insurance for the period of the mortgage. The policy must be assigned to your lender as beneficiary. You don’t have to take this from your lender, but often your lending rate may increase if you don’t.
· Other Insurance — There can be additional insurances or “Guarantees”, which may be required by your lender. These usually take the form of lump sum payments of between 0.4 and 0.8 on an existing property and 1.3% and 1.8% on new build or off-plan purchases
Call +33 659 80 30 34 or email financial@sud-de-france.co.uk for your free mortgage quotation | 
