Get up to speed on French property deposits

Anyone planning to get a mortgage when buying property in France will have to pay a deposit to the bank.

This cash sum is a way of letting the bank know that their client has a trustworthy source of income and will usually be expected to be paid regardless of where a mortgage is obtained.

The amount of money which is handed over as a deposit will depend on a variety of factors based on the situation of the individual.

Those who choose to live as residents in France and therefore pay income tax already may be offered a 100 per cent mortgage – in which case a deposit is not deemed necessary.

But many people who are thinking of investing in French property decide to remain in the UK and use it as a holiday home or rent it out to others.

In this case, the deposit will most likely be somewhere around 15 per cent of the final sale price.

Anyone who is buying a property but is not a European resident may be asked to pay a higher deposit of around 20 per cent.

The price of your new home will, of course, reflect the cost of your deposit but if you are able to obtain equity on your previous house or have saved regularly, then fronting this fee should not be a problem.

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