French Mortgage Affordability

The French lenders work on a debt-to-income ratio which as a general rule must not exceed 33%. This essentially means that no more than a third of your monthly income can be taken up by existing loans, mortgages and your projected French mortgage repayments. This approach works on an individual’s ability to service the loan and therefore proof of income and outgoings (see below) will be required on application for a French mortgage.

Proof of Income required for a French mortgage

When calculating your income, the banks will take into account your salary (or profit if self-employed) and can also consider including a percentage of any rental income and income from investments provided you can obtain sufficient evidence to back this up.

On application for a French mortgage French underwriters will require:

If employed:

• At least 3 months payslips

• P60 and bank statements (if employed)

• Employment contract.
  

NB. Balances on these bank statements must not have exceeded any overdraft limits or have any unpaid direct debits evident. French banks will reject any application until you can provide 3 months ‘clean’ bank statements.

If self-employed:

• At least the last 3 years accounts

• Last two years tax returns

• An accountant’s letter

Proof of Outgoings required for a French mortgage

In terms of outgoings French lenders will include any mortgages (including domestic and projected French mortgage repayments), car loans, other loans, child maintenance and rental payments.

On application for a French mortgage you will need to provide:

• Your most recent annual mortgage statements and written up-to-date proof of the current monthly repayments

• A copy of your tenancy agreement if renting

• A copy of any loan agreement(s) in place

• Decree Nisi or any such documents confirming maintenance commitments

Other Documents required

• Proof of identity (passport, birth certificate)

• Proof of residence (utility bill etc.)

• Evidence of your personal contribution to the purchase and proof of assets.

• If you have found a property a copy of the Sales Agreement (Compromis de Vente) and photographs of the property if available.

How much can I afford? Next steps:

If you would like to receive a tailored French mortgage quote or if you would like to find out how much you are eligible to borrow you can submit your details here. Alternatively you can speak to a French mortgage consultant who will be able to calculate your affordability through each of the French lenders on 0044 (0)207 484 4634 or submit your details here.

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