Home
Up

 Step 1. Get yourself  a George!

I started using George to help with my clients who wanted a French mortgage after one chap walked in , looked at a house, made an  an offer that was accepted and we proceeded with the sale. He then said that he needed a mortgage, ( a French mortgage), and my heart sank.

  I have been involved with two other English people trying to get mortgages from French banks, and in both cases, the story was the same.  The bank said "yes, no problem, no problem.". Even invited  the regional manager in, who said "no problem no problem".  All the papers were given to the Bank, "no problem no problem".  Two weeks before the sale, the bank phoned up and said: "Sorry you can't have the money!"  This is after them having had the details for more than two months!!! 

So I started to give my client  in the office my standard explanation about how much you can borrow in France, and he said "No, don't worry, I already have a mortgage pre-agreed."

"Pre-agreed?  In France?  No, that's quite common in England, but it doesn't happen like that in France."

He promised me that he did have a pre- agreed mortgage and gave me George's telephone number to check. The rest, as they say, is history.  I now only use George as he gives my clients an answer very quickly and is also much much more efficient  than any of the French banks, who are dealt with directly

A couple of other points..

1. George doesn't charge you for organising the mortgage

So, he, ( unlike other French brokers) wont get paid unless your mortgage goes through. So who would you rather do business with, someone who only gets paid if your mortgage is accepted, or someone who wont tell you what Bank he is applying for your mortgage, unless you cough up over a thousand Euros, with no guarantee of even getting your mortgage?.

2. You will pay less than if you went direct to the Bank yourself.

Yes, this does seem too good to be true, but its all down to good old French admin. The Banks that George deal with have all been so surprised with the percentages of "dossiers" that George gives them that complete on a mortgage, that they have given him a discount, as there is less admin for them. Now George does get paid, but by the banks, not by you.

So to summarise......

1. No up-front charges

2. Cheaper payments than if you went direct

3. Quicker answers

4. Pre-arranged Mortgages, like in the UK, but with French banks

Without trying to be clever, or rude to the reader, why the Benson and Hedges would you go anywhere else?

George transacts loans with all of the French Banks. Listed below are the most frequently offered loans available to Non- Resident Purchasers.

Fixed Interest Rate loans

These are by definition self explanatory, the interest rate is fixed at the start date of the loan for the duration of the mortgage period be this 5 or 25 years. The benefit is the knowledge that you will always know what your monthly expenditure on your French Mortgage will be. The downside to this type of mortgage is that the interest rates are 1; higher than can be obtained in the same market place by a variable rate loan and 2; they carry a penalty payment of usually 3 % of the capital re-imbursed should you choose to pay of your loan in all or part before the end of the loan period.

Capital and Interest Variable Rate loans

These loans can be obtained at a cheaper rate of interest than the Fixed rate schemes mentioned above and can usually be cleared in all or part before the end of the loan period without any penalty. Please note that some variable rate loans in France do carry early redemption penalties. George does not recommend these types of loan with penalties for our clients . Within this same type of category of loan he can arrange Capped rate mortgages where the amount the interest rate can move up or down is capped at either a 1% or 2% Margin giving some stability to payments.

Fixed Payment Loans

These types of loans are designed to give the client the best of both worlds so to speak. Your monthly payment is fixed at the outset of your loan although the interest rate is variable. Should the interest rate move up or down, the bank will either increase or decrease the term of your mortgage instead of changing your monthly payment. As the interest rate is cheaper than a true fixed rate scheme and there is no penalty on early redemption in part or all this type of scheme is becoming increasingly popular. George will be happy to advise clients on this type of scheme.   

Interest Only Loans

This type of loan is not widely available in France but there are certain French banks that are happy to transact this type of loan. The loan offered may well be a type of hybrid arrangement where the interest only period may well be limited to the initial 5 years followed by a capital and interest period of 20 years on a standard 25 year mortgage. Or even 10 years Interest only followed by 15 years capital and interest repayment.  True interest only products can be arranged whereby you only ever pay the interest and at the end of the mortgage period either then repay the capital sum initially borrowed or sell the property to repay the loan. These loans can be arranged with no penalties on early repayment should you wish to pay of the capital at any given point in the mortgage term.

Equity Release Schemes

George is are able transact equity release mortgages for any purpose with a number of French banks up to 80% of the value of the property. Please contact him for more details of these types of mortgage. He can combine this with interest only for those clients who qualify.

Leaseback Mortgages

The first thing that should be explained is not confuse this type of mortgage with the term Buy to Let as in France this does not have the same meaning. If you simply wish to let out your French property from time to time to suit your own requirements this is not a Leaseback scheme in France. A true Leaseback scheme in France or “Credit Bail” to give it the correct French name is a development of properties in a complex the letting out of which is managed by a professional management company set up to manage the whole complex at the time it is built. The properties are usually let out over a 9 year period with a limit of how much time the owner may use the property for his own use typically no more than 4 weeks a year. The rental income is usually guaranteed for the 9 years period at the out set at for example 4.5% of the value of the property purchased. Those clients who wish to be advised on these types of scheme please contact George  and he will be happy to help and arrange the necessary mortgage which can be on the basis of any of the schemes mentioned above.

Euroswitch Mortgages

These types of schemes can be arranged for clients who may well have an unencumbered property in France whilst paying a mortgage on there own property at home at a more expensive rate of interest than they could obtain in France. We can arrange a loan against the French property providing funds to repay the more expensive loan and reduce your monthly outgoings. Please feel free to contact George for further details.

We have tried to cover the main types of French loan that we can arrange for clients in France but please bear in mind this list is not exhaustive. Should you wish to arrange Bridging Loans, or Land Purchase Loans to buy and build your own home we will be happy to help. As the service is free to use don’t hesitate to contact George regardless of your project and he will be happy to talk it through with you without any commitment on your part.

Step 2. Fill In the form and send it off!

 It will be whisked off to George who will contact you directly, with  a much quicker reply than most High Street banks!!