Easy accessibility from the UK and boasting diverse regional attractions, ranging from vineyards and castles, to art and beaches, France has been a top destination for UK expats, holiday-home hunters, and investors for many years. However, securing finance to purchase French property is not always as straightforward as doing so in the UK.
We look at how UK-based brokers with specialist knowledge in the French mortgage market can be an essential part of the process. Whether you’re looking to relocate to Provence, invest in a chic Parisian apartment, or buy a ski chalet in the Alps, at Money Helpdesk we can help you to navigate French mortgage criteria, post-Brexit requirements, and other overseas regulations that differ from the UK.
Can you get a UK mortgage to buy French property?
No, you can’t, from a UK high-street lender. They don’t currently offer mortgages to British citizens or expats who are looking to buy residential property, or invest in the French rental market.
However, the good news is that many French mortgage lenders and international private banks are very receptive to UK and other overseas mortgage applicants. While French mortgage rules and affordability checks are quite different to those of UK lenders, a UK mortgage broker with experience in the French market will be able to help you.
How French mortgages work for non-residents
While international buyers do not have any restrictions on acquiring property in France, since Brexit, UK property buyers are treated as non-EU citizens, which introduces slightly different regulatory and taxation considerations when buying and owning property in France.
In addition to this, borrowers not permanently residing in France, and/or those not paying their main taxes to the French government, are classified as non-residents by French banks. Mortgage lending in France is highly dependent upon your residential status, and non-residents are subject to different maximum loan amounts, deposit requirements, and strict affordability checks. Mortgages in France have an eleven day “cooling off period”. This means that even once the bank has sent you the paperwork to complete, you must wait eleven days before you can return the application.
French mortgage criteria
French banks are heavily regulated by the Haut Conseil de Stabilité Financière (HCSF), which dictates strict affordability limits that apply to both residents and non-residents alike. The most important rule to know is the 35% debt-to-income (DTI) limit. Your total monthly debt repayments, including your UK mortgage, personal loans, the new French mortgage, and mandatory life insurance, must not exceed 35% of your net monthly household income. As with any lender, there are age restrictions on borrowing, usually around the age of 75.
Additionally, non-residents generally face a lower maximum Loan-to-Value (LTV) ratio. While French residents can sometimes borrow up to 90% or 100%, non-residents are typically capped at 70% to 80% LTV. This means you will need a deposit of at least 20% to 30% of the property's purchase price, plus enough cash to cover the notoriously high purchase fees.
French lenders will not run a credit check on you like in the UK, but they will carefully assess your income and outgoings. They will review your tax returns, pay slips, bank statements, employers’ letters and rental agreements as well as any previous mortgage statements. You will, however, need a French bank account to secure a mortgage, with the Releve D’identite Bancaire (the details of your bank account).
French property valuation requirements
French lenders won't usually require a property valuation before they will formally approve your mortgage. Not all lenders will carry out a valuation or a survey. It’s up to the borrower to investigate any particular issues with the property, like structural issues, damp, or dodgy wiring. This is because, in France, In France, the seller is legally forced to investigate and disclose specific issues, meaning buyer's structural surveys barely exist.
Which lenders offer French mortgages?
The French mortgage market is serviced by major retail banks such as:
- BNP Paribas
- Crédit Agricole
- Société Générale
Many of these lenders have dedicated international or private banking arms designed to help non-residents. However, approaching a standard local branch in France as a non-resident will often result in a swift rejection, as local advisors are rarely trained in foreign income assessment. Working with a specialist overseas broker ensures your application is routed directly to the specialised international lending departments whose criteria align with your financial situation.
Mortgage and property costs in France
When purchasing property in France, you need to budget for several significant upfront costs beyond your deposit. The fees in France are considerably higher than in the UK, largely due to the taxes bundled into the Notaire's fees.
|
Expense Category |
Estimated Cost |
Details & Key Considerations |
|
Frais de Notaire (Notary Fees & Taxes) |
7% to 8% for older homes / 2% to 3% for new builds |
Despite the name, only a fraction of this goes to the Notaire; the vast majority is government stamp duty and land registration tax |
|
Mandatory Life Insurance (Assurance Emprunteur) |
0.30% to 0.60% of the loan amount annually |
French banks legally require you to have life insurance attached to the mortgage to cover the debt in the event of death or severe disability |
|
Mortgage Registration / Guarantee Fee |
1% to 1.5% of the loan value |
Paid to secure the bank's charge over the property (e.g., via Crédit Logement or an IPPD) |
|
Property Valuation Fee |
€250 to €500 |
Paid to the independent expert immobilier to value the property prior to official mortgage underwriting |
|
Bank Arrangement Fees |
0.5% to 1% of the loan amount |
Charged by the French lender for setting up the mortgage facility (often capped at around €1,500) |
|
Deposit |
20% to 30% of the property's purchase price |
Must be available in liquid cash to satisfy maximum non-resident LTV caps |
How to secure a French mortgage as a UK buyer
The most crucial step for a UK buyer securing a mortgage in France is managing the timeline of the compromis de vente (the preliminary sales agreement).
When you sign a compromis de vente in France, it is legally binding. However, it will usually contain a vital opt-out clause known as the clause suspensive de prêt (financing contingency clause). This clause states that your obligation to purchase the property is strictly conditional on you successfully securing a mortgage. If your mortgage application is formally rejected by the bank, this clause allows you to back out of the purchase and have your initial deposit refunded without penalty.
Types of French Mortgages Available
French lenders offer mortgage products that function quite differently from those in the UK. The most common types include:
-
Long-term Fixed-Rate Mortgages (Prêt Amortissable à Taux Fixe): Unlike UK fixed-rate deals, where 2-year or 5-year terms are the norm, the standard in France is to fix your interest rate for the entire duration of the loan (typically 15 to 25 years). This offers incredible long-term security
-
Interest-Only Mortgages (Prêt in Fine): Often used by high-net-worth individuals and property investors, as your monthly payments only cover the interest, and the capital is repaid in a lump sum at the end of the term. Lenders usually require significant pledged assets or a large investment account to secure this type of loan
-
Variable-Rate Mortgages (Taux Révisable): The interest rate fluctuates with the market (usually tied to the Euribor). These are less common for foreign buyers due to the excellent value of French fixed-rate products
Can I get a French Buy-to-let mortgage?
Yes, but in France, these are known as an 'investissement locatif'. French lenders are open to financing investment properties for non-residents, provided they meet the strict 35% HCSF affordability criteria. It is important to note that when calculating your affordability, that French banks typically only include around 70% to 80% of the projected rental income to account for potential void periods and maintenance costs. You must also be aware of the strict tax regulations surrounding furnished holiday lets (meublé de tourisme) if you plan to rent the property on platforms like Airbnb.
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Considerations for non-residents when buying a home in France
When buying a home in France, there are important legal and tax considerations that you must factor into your long-term plans.
The Wealth Tax (Impôt sur la Fortune Immobilière - IFI)
France levies an annual wealth tax on real estate assets if the net value of your French property portfolio exceeds €1.3 million. A major strategic benefit of taking out a French mortgage rather than buying in cash is that the outstanding mortgage debt is deducted from the property's value when calculating your net taxable assets. This keeps many foreign buyers below the IFI threshold.
The Role of the Notaire
In France, the Notaire is a highly regulated government official who handles the legal transfer of the property, ensures all taxes are paid, and registers the deeds. While they ensure the transaction is legally compliant, they do not act exclusively in your personal interest like a UK solicitor would. It is often advisable to appoint your own bilingual Notaire or legal advisor to work alongside the seller's Notaire.
Paying in Euros - Fluctuating currency
All mortgage repayments in France will need to be paid from a French bank account, in Euros. If you live and earn your income in the UK, a shift in the exchange rate could mean your mortgage suddenly costs you more in British Pounds. It’s highly advisable to speak to a specialist currency exchange broker who can help you fix exchange rates or manage regular overseas transfers efficiently.
The importance of specialist advice
Because of the strict 35% debt-to-income rules, the complex compromis de vente timelines, and the conservative way French retail banks assess foreign income, securing a French mortgage requires expert navigation.
Using a specialist UK-based broker with deep knowledge of the French market will save you time, protect your deposit by ensuring the correct clause suspensive is in place, and give you access to lenders who are genuinely willing to finance non-resident applications.
Get started to speak to a specialist broker with expert knowledge of arranging French mortgages for UK buyers. Your initial chat is always free of charge with no obligation to continue.
FAQs
Yes, you can. However, because French mortgages are usually fixed for the entire duration of the term, lenders heavily protect their interest yields. If you overpay or pay off the mortgage early, you will typically be charged an Early Repayment Charge (Indemnité de Remboursement Anticipé - IRA). By French law, this penalty is capped at a maximum of 3% of the outstanding capital being repaid, or 6 months' worth of interest, whichever is lower.