Mortgages ??

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D__I__A__B__L__O

Original Poster:

346 posts

215 months

Friday 27th July 2007
quotequote all
Anybody have a French one and care to share details on the basics of how they work ?? Is it possible to get a UK mortgage on french property ?? We have seen a house and would love to purchase it but need some extra cash for renovations !! In England you just over mortgage but i believe this is different in France,

basically whats the best way of doing it ?? Ive read many articles on the internet but would rather hands on experiences

Thanks in advance

Puggit

48,803 posts

255 months

Friday 27th July 2007
quotequote all
We're just going through the process. GE have a good setup where you can pay interest only for 10 years, then pay off the capital. So it's cheaper to start with!

It seems they have rules that you can only borrow a certain amount of money - 40% of your gross salary from memory. Also it doesn't appear very easy to get mortgages for renovations.

We are looking to borrow a large chunk from a French mortgage lender, and then have remortgaged our UK property to pay for the renovations (without crippling ourselves!).

D__I__A__B__L__O

Original Poster:

346 posts

215 months

Friday 27th July 2007
quotequote all
No worries Pug, our situation is this, we have seen a house we like very much (3 down from my parents !!) and currently have no hardcore ties in uk what-so-ever. We would rather buy and invest in a French property. the only ties we have are a debt or two, the usual credit card, loan etc, ideally in UK you get a big enough mortgage to cover these too. My dad says that we should bang in the offer and that my Nan will sort us out ??? The only thing is that if she doesnt we are up sh1t creek without a paddle as we would be committed !! If only it were so simple, will be speaking to them later so see what they suggest again. Its not exactly a huge mortgage either !!

Puggit

48,803 posts

255 months

Friday 27th July 2007
quotequote all
Whereabouts are you looking? We're heading back on Sunday to the Le Loir valley (just North of Tours and La Loire)...

D__I__A__B__L__O

Original Poster:

346 posts

215 months

Saturday 28th July 2007
quotequote all
Looking in Burgundy, my parents have had a farm about half an hour west of Cluny for 19 years. There is another house in the same hamlet (3 houses away from my parents) for sale now. Its just come on the market after the 5 year wait to avoid tax, its in working order but could do with some modernising !! Out buildings to be worked on too so plenty of long term work to do. My wife and i would much rather invest in a property in France than here, plan to retire in France eventually, only 27 though so a while to go yet !!! Will put some pics up tomorrow for you.

Whats the story with yours ??

Puggit

48,803 posts

255 months

Saturday 28th July 2007
quotequote all
We holidayed near Tours this June. We've always wanted a holiday home and this area fits the bill perfectly. New A28 links the area to the Channel, TGV from Paris in an hour, and 2 budget airports.

I grew up near Paris, so speak the language well enough to converse. Would love to move out here eventually - and this gives us the option at any time.

chateaucharly

49 posts

264 months

Saturday 28th July 2007
quotequote all
From what I know of poeple here, french poeple that is, you can borrow up to 80% of the value of the property. We did things slightly differently and managed to take out a loan over a shorter period.
The French mortgage options/deals do seem to be a bit behind the UK but are gradually catching up. They didn't like to release equity from a property until more recently for example so I am told. I just hope that they are doing this now otherwise our plans are up the swanny.

D__I__A__B__L__O

Original Poster:

346 posts

215 months

Saturday 28th July 2007
quotequote all
Well the house was on the market for 140,000E and we put in an offer for 120,000E, offer has been accepted so excellent news. What next though eh !!! Have to speak to the immobilier on monday and go from there

Puggit

48,803 posts

255 months

Sunday 29th July 2007
quotequote all
What next is signing the compromis and placing a hefty deposit down - get this done and you're almost there.

This is where we tripped up, the french vendor decided that as we hadn't signed the compromis immediately (we were waiting for a translation!) we weren't going to buy his house...