Know your mortgage options when buying French property

For many hoping to purchase property for sale in France the prospect of getting a mortgage can be an intimidating one. But knowing exactly how the system works can help a prospective buyer obtain a loan with relatively little stress involved.

Like in Britain, mortgages are available at all major French banks – which are regulated to ensure they are abiding by certain rules and regulations.

But as with any foreign country, there are some major differences in the way a mortgage is obtained and investors are advised to get up to speed on these before buying property in France.

Two types of mortgage are available for homebuyers purchasing French property – either repayment or interest only.

Mortgage products themselves vary, with some banks offering variable or floating rates with a fixed repayment variable term. Others provide mortgages with the monthly instalment changing regularly and a fixed term.

Property experts say the best time to apply for a mortgage in France is when the preliminary contract, or Compromis de Vente, is about to be signed. It is useful to know that by law, this contract can contain a get out clause to ensure the buyer can pull out in the event of a dispute or change of mind.

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