As I’m sure you know, there are a fair few different types of mortgages in France. Below, we run through the most popular options to help you find out which is better suited to your project. We have a dedicated mortgage team who can help you turn your dream of buying a French property into a reality. Mortgages in France are very different than in other countries, so we are here to help walk you through the whole process.
These are the five main types of mortgages in France, please keep in mind there are other types of mortgages in France for more specific situations, so if nothing seems to suit you, let us know and we can find the right loan just for you!
Probably the most popular of the mortgages in France, a standard loan, where the borrower repays the capital and the interest, and the instalments remain constant. This product is currently available in fixed or capped rates for between 8 and 25 years. The minimum loan amount is €100’000, and the maximum loan to value is 85% (15% deposit).
- The Switch
This one is a fixed rate loan with two repayment periods. A first period with a higher monthly payment and a second period with a lower monthly payment. This can be beneficial to those retiring soon or hoping to take a step back in the future. This product lasts between 8 and 20 years and also has a minimum loan amount to €100’000. The maximum loan to value is also 85% (15% deposit).
- Start Up
The start up mortgage comprises of two periods. The first is interest only and runs for 5 to 7 years. The remainder of the loan is repayment. The minimum duration is 12 years (if 5 years of interest only) or 14 years (if 7 years of interest only). The maximum duration is 20 or 25 years depending on the project. Minimum loan amount is also €100’000, with a maximum loan to value of 75% (25% deposit).
A mortgage where the whole amount is divided into 2 loans. 50% is interest only, and 50% is repayment. This one is available in fixed, capped and variable rates. The minimum length of time is 7 years for the interest only, and 8 for the repayment. The maximum term is 14 years for interest only and 25 for repayment, depending on the product. This product has a higher minimum loan amount set at €200’000, and the maximum loan to value is 80% (20% deposit).
- Interest Only
The second most popular of the mortgages in France, for this loan, the borrower repays only the interest. And the instalments will vary according to the fluctuations of the rate. At the end of the loan, the capital must be paid back to the lender, and the borrower gets the value by which the property has increased. This is a great product for investors as it has very low monthly payments. This mortgage is available at a fixed or variable rate, for between 7 and 14 years. The minimum loan amount is also €200’000 and the maximum loan to value is 75% (25% deposit).
How to start your application:
If you’re ready to get started with your property search, you should get an in-principle decision to determine your budget. You can fill in our form here, and our mortgage team will get in touch!
Alternatively, our mortgage payment calculator is easy to use and should help give you an idea into how much you can afford if you’re not quite ready to commit.
Or, simply fill in the form below! And we’ll give you a call back to help with your plans. We will look forwards to hearing from you!