How to get a mortgage in France as a UK foreigner?

Thinking of buying a property in France? Whether you’re thinking of moving or retiring there, buying a holiday home or an investment property, one of the first things you’ll need to know about is how to get a mortgage.

We’re to help, with a complete guide to getting a mortgage in France for foreigners. This includes info for UK expats and non-residents on everything from the types of mortgages to interest rates and fees, as well as how to apply and how long it typically takes.

Also, if you’re looking for ways to save money on currency exchange when sending a down payment or mortgage fees to France, check out the money services provider Wise. You can send large transfers with Wise for low fees* and great mid-market exchange rates - making it ideal if you’re sending a secure international transfer.

Table of contents

Can you get a mortgage in France as a non-resident? Getting a mortgage in France from the UK after Brexit Mortgage eligibility criteria for UK citizens in France Is it easy to get a mortgage in France? Step by step guide on how to apply for a French mortgage as a foreigner Which documents do you need as a non-resident? How long does it take to get a mortgage in France? Fees and costs for getting a mortgage in France Valuation fees Mortgage arrangement fees Other fees and costs French banks or lenders offering mortgages to foreigners Mortgage rates in France Can you get a UK mortgage to buy property in France? Do banks offer Buy-to-Let (BTL) mortgages in France? Remortgaging in France Types of mortgages in France Fixed rate mortgages Variable rate mortgages Interest-only mortgages Capped-rate mortgages Final tips for getting a mortgage in France as a non-resident Send the down payment and mortgage fees with Wise and save money

Can you get a mortgage in France as a non-resident?

French banks and mortgage providers lend to international buyers as well as residents. This means that in theory, you should have no trouble getting a mortgage to buy your French property.

However, you may face some additional requirements and restrictions as a UK buyer.

In France, the typical loan-to-value (LTV) ratio for non-residents - essentially, how much the provider is prepared to lend you, compared to the value of the property - is around 75% to 85%.¹ This may mean you need a bigger deposit.

As a foreign buyer, you may also have to do the following:¹

• Open a French bank or savings account containing a minimum deposit which covers at least 2 years of mortgage payments.
• Take out a life insurance policy that equals 120% of your total mortgage - where the lender is the beneficiary
• Arrange health insurance to cover the cost of repayments in case of illness or injury

Whether or not you’ll have to meet these requirements depends very much on the individual lender. It’s always a good idea to check the terms and conditions of the proposed mortgage before going ahead.

Getting a mortgage in France from the UK after Brexit

Now that the UK has officially left the European Union, does this make it more difficult for British citizens to get a mortgage in France? Thankfully, it hasn’t - French mortgage lenders are willing to consider applications from both residents and non-residents, wherever they come from.

But there is an important Brexit-related change you need to know about if buying property in France.

It’s called the 90-day rule. It stipulates that UK citizens who aren’t permanently resident in France can only spend a maximum of 90 days per 180 day period in the country. To stay longer, you’ll need a visa or residence permit of some kind.²

This means you may have a second home in France, but you’ll be restricted to how much time you can actually spend living in it - unless you actually move to France and make the country your permanent home.

Mortgage eligibility criteria for UK citizens in France

The eligibility criteria for mortgage applications will vary between lenders. UK citizens are subject to similar requirements as EU nationals, even after Brexit.

You’ll usually need to meet the following requirements:¹

• Be under the age of 75. Bear in mind that applicants over the age of 60 may be asked to complete a medical test.³
• Have a debt-to-income ratio of under 35%
• Be employed - if you’re self-employed or run a business in France, you’ll need to have at least three years of accounts to hand.
• Have some savings, and not all your wealth tied up in non-liquid assets like property
• Want to borrow at least €150,000 as a minimum
• Have a minimum deposit of 15% to 25%.

You might also have better luck getting a French mortgage for a new build property rather than an older doer-upper.

Is it easy to get a mortgage in France?

If you meet the criteria, getting a mortgage in France can be relatively straightforward. However, it’s likely to be time-consuming and involve plenty of paperwork.

The approval process is heavily focused on affordability and financial risk, so you’ll need to provide accurate and extensive details about your income, earnings, outgoings and assets.

There are some additional challenges that can make it more difficult.

For starters, you may struggle if you’re not a fluent French speaker. It could be sensible to enlist the services of an English-speaking broker, translator or French-speaking friend. And if your documents are in another language, they might need to be translated and certified.

You may also face complications if you have a poor credit history or too many debts.

Step by step guide on how to apply for a French mortgage as a foreigner

To give you an idea of what to expect, here’s a step-by-step look at the process of applying for an French mortgage as a foreign national:³

1. Find a mortgage. You can either use a broker to explore your options, or apply directly with a bank or lender with a mortgage that suits your needs.
2. Get an agreement in principle (accord de prêt or accord en principe) from the lender. This indicates the lender is willing to lend to you ‘in principle’, subject to approval and final checks of the property you intend to buy. You may need to show this to estate agents in order to arrange property viewings or submit offers.
3. Find a property within your budget and agree on a purchase price with the seller. Once you’ve signed the preliminary sales agreement, inform your mortgage provider, ready to take the next steps.
4. Apply for your mortgage formally, by submitting a complete application along with your supporting documents.
5. Some lenders may carry out a valuation or appraisal on the property - a fee may apply for this.
6. The lender will issue you with a mortgage offer. Read the details, terms and conditions carefully before accepting. You’ll need to wait at least 10 days to do this, but many offers expire after 30 days - so it's important to get your timing right.
7. Sign the mortgage agreement in the presence of a notary (notaire).

💡 Read more: Taking cash in or out of the UK: What are the rules?

Which documents do you need as a non-resident?

The exact documents you’ll need to apply for a mortgage in France will vary between lenders.

But here’s an idea of what you’re likely to need:¹

• Your completed mortgage application form
• Copies of your UK passport
• Proof of income. If you’re self-employed, you’ll need to show audited financial statements dating back at least three years.
• Details of your bank account, which ideally will be held at a French bank.
• Bank statements from the previous three months
• Proof of address, such as recent utility bills
• A statement listing all of your assets.
• The signed preliminary sales agreement for the property you’re buying.

How long does it take to get a mortgage in France?

On average, it takes around 12-14 weeks to get approved for a mortgage in France.⁴ It’s crucial to make sure all your paperwork is in order before starting the process, to help you avoid any delays.

Fees and costs for getting a mortgage in France

Applying for a mortgage in France usually involves some fees. The main ones to know about are valuation fees, arrangement fees and notary fees.

Valuation fees

If the lender requires a valuation of the property, you can expect a valuation survey fee of around €250.³

It’s important to note that this valuation survey only looks at the value of the property, and won’t identify any structural, maintenance or other issues. You’ll need to commission your own building survey for that.

Mortgage arrangement fees

Also known as the product fee or completion fee, this is the main fee for taking out the mortgage.

The exact amount varies by lender, mortgage product and the size of the loan. But you expect to pay around 0.5% to 1% of the loan amount in arrangement fees.³

Notary fees

In France, the notary (notaire) plays a key role in property transactions. This includes the signing of the mortgage agreement, along with other work.

The fee for a notary’s services varies depending on whether you’re buying a new build or older property. For a new property, the fee is around 2% to 3%. For properties over 5 years old, it can be much higher at around 7.5%.³

Other fees and costs

You may also encounter some of these other costs when applying for a mortgage in France:

• Broker fees (if you’re using a broker) - these costs vary by provider, so you’ll need to get quotes. But the fee is usually around 1% of the loan amount.³
• Transfer fees - if you need to make payments between countries to pay the down payment or the fees above, you may incur fees.

French banks or lenders offering mortgages to foreigners

If you’re a French resident, you should have the same choice of mortgages as a French citizen. The requirements for application are also likely to be similar.

But if you’re not living there, you might find that you have slightly fewer options as a foreigner. You may also have to meet a higher eligibility threshold.

To help you start your search, here are a few French banks which do offer mortgages to non-residents and foreign expats:

• BNP Paribas – BNP Paribas is the biggest bank in France, with over 200 years of experience in the industry. It offers a dedicated service for non-residents, which includes mortgages and property investment support.
• Société Générale – Another of France’s oldest and most reputable financial organisations, Société Générale is a good pick for residential and buy-to-let mortgages. However, you’ll need to open a current account with the bank first.
• Banque Populaire – Part of the larger Groupe BPCE, the second-largest banking group in France, Banque Populaire focuses on retail banking. It mainly offers fixed rate mortgages, although it advises that not all of its banking products may be available to UK residents following Brexit.⁵

💡 Read more: How to transfer large sums of money between bank accounts?

Mortgage rates in France

As of June 2024, the average mortgage rate in France was 3.70%.⁶

Remember though that mortgage rates fluctuate regularly - so you’ll need to check the updated rates when you’re ready to apply for your mortgage.

The rate you’re offered will also depend on your circumstances and eligibility, the amount you’re borrowing and how much of a deposit you have.

Can you get a UK mortgage to buy property in France?

You might find it difficult to get a mortgage in the UK to finance your property purchase over in France. Not many UK banks and lenders offer what are often known as ‘overseas mortgages’ secured against property in other countries.

You could potentially look at remortgaging an existing property you own in the UK, borrowing more to raise funds for your purchase in France.

Crucially, you should only do this if you can afford the repayments. It could also be a good idea to seek professional financial advice first.

Do banks offer Buy-to-Let (BTL) mortgages in France?

Yes, you can get Buy-to-Let mortgages in France, although not all lenders offer them and they can be hard to get. One of the biggest challenges will be convincing the lender that you’ll earn sufficient rental income to cover the repayments.¹

If you’re new to the concept, these are mortgages designed specifically for buying property as an investment, which you intend to rent out to tenants.

Remortgaging in France

It’s also possible to remortgage your property in France, although it isn’t as common there as in the UK. There may also be more costs involved, such as higher admin fees and interest rates.

Remortgaging can also help you borrow more money, such as to fund another property purchase without having to sell your first property.

You’ll just need to make sure you can afford the repayments and aren’t overstretching yourself.

Types of mortgages in France

You can find many of the same types of mortgage in France as in the UK, which includes fixed term, variable rate and interest-only mortgages. The French mortgage market also has capped-rate mortgages.

Here’s a little more about each:

Fixed rate mortgages

One of the most popular repayment mortgages around, fixed-rate deals typically offer low rates and greater financial security. However, they can also have penalties for overpayment or early payment.

Variable rate mortgages

In France, variable rate mortgages are linked to the European InterBank Offered rate (EURIBOR). This means the rate can fluctuate. You’d assume this automatically means a change to your monthly payments, but in France it usually results in a change to the overall mortgage term length instead.¹

Interest-only mortgages

If you’re looking into getting a buy to let mortgage in France, this is one of the options you may consider. It effectively means you only pay the interest on the loan, rather than the original amount borrowed. Your payments will be lower, but you’ll still owe the mortgage amount at the end of the term.

However, interest-only mortgages in France can be difficult to get as a non-resident.¹

Capped-rate mortgages

These work just like variable rate mortgages, but with a cap on the rate. This offers more financial security, but you’re not locked into a fixed rate deal.

💡 Read more: The best UK banks for sending money abroad

Final tips for getting a mortgage in France as a non-resident

To stand the best chance of getting accepted for an French mortgage as a non-resident, bear these tips in mind:

• Try to build up a credit file or some form of financial footprint in France, such as opening a French bank account. This may mean you need to wait until you’ve moved there.
• Ensure you have a large enough deposit.
• Get tailored advice for foreign applicants, to help you find suitable non-resident mortgages in France.
• Make sure you have all your documentation in order, especially relating to income, employment and savings. You may also need to have documents translated into French and certified.

Send the down payment and mortgage fees with Wise and save money

If you’re sending your deposit and mortgage fees to France from the UK, you may incur hefty transfer and exchange fees when converting your British pounds to euros (EUR). This is where Wise and the Wise account can help you save money.

Open a Wise account online and you can start managing your money in 40+ currencies (including GBP and EUR). It’s not a bank account but offers many similar features.

Here’s an overview of the main benefits for using Wise:
Fast and easy setup with no physical paperwork Low, transparent fees* Mid-market exchange rate for currency conversions Fully trackable transfers Fast transfer times Advanced security features with two-factor authentication and real-time notifications Dedicated support for large transfers

Sign up with Wise today 💰

---

Sources used:

1. Online Mortgage Advice - Mortgages in France
2. Euronews - France blocks plans to let British expats stay longer than 90 days without a visa
3. Expatica - How to get a French mortgage
4. Harrison Brook - Mortgages in France
5. Banque Populaire - English Website
6. Banque de France - Loans to individuals, France - 2024-06

Sources last checked on date: 08-Sep-2024