When we have a client that is looking to finance their property with a mortgage we always discuss the option of a French loan. Interest rates are lower and there are some decent buy-to-let and extended loan periods on the market. The colleagues we put you in contact with are based here in our part of the French Alps and they are able to come out to meet you in resort, even at your hotel if it suits you best. They work for some of the largest lenders in France, they speak fluent English and they are used to dealing with clients that are based overseas, so they can work via email and the telephone without any issues.

Best of all they are able to offer a very personal service. They really know the local property market and they understand property values, very often they know the notaire handling your purchase and they know us, the estate agency that you are buying through. When you apply for your mortgage they will talk you through providing all the information required and explain why it is needed (and French banks do require a lot more paperwork than their UK counterparts). They will also liaise with us to find out when your loan application needs to be submitted and they will ensure that you receive your loan offer within the timings given in the first sales contract. This is all done by frequent checks with us and the notaire handing your purchase, smoothing the way and removing all stress from the process. Once we have a completion date we let our contacts know that the funds need to be released and you can relax in the knowledge that there won’t be any delays with your final signing.

Whilst any broker may claim to be able to offer the same personalised service our experience has frequently proved otherwise. We have had clients that have opted to speak to a broker about the loan and have ended up dealing with exactly the same banks that we work with but significantly not the same people at those banks. In many cases these loan applications have been fraught with problems and delays; incomplete files leading to weeks passing by with no progress, no liaison with the agency or notaire so contractual application deadlines are missed, unreturned calls and poor client service leaving buyers frazzled and chasing their broker for any snippet of news they can get. All this points to one obvious cause; a broker based in the UK is another layer between you, the bank, the agency, the notaire and most importantly, the keys to your property.

The repercussions of a delayed or incomplete loan application can be very costly for you. When you sign your first sales agreement there will be a timing plan associated with your loan application. If you are late with your application and this delays the sale beyond the dates agreed in the contract, the vendor can withdraw from the sale, retain your deposit and enforce a penalty clause (typically 5% of the sale price). In properties where there has been a lot of interest this is a more likely scenario. If the vendor chooses to he or she could pursue you through the courts to complete on the purchase without a loan, although this is less likely than withdrawal from the sale.

As with any French mortgage there will be a mortgage arrangement fee to pay the lender. If you deal with a broker there will be an additional broker’s fee to pay on top of the mortgage arrangement fee. When you add this to the complications that dealing with a broker can cause then it doesn’t appear to be as good a deal as they’d like you to think.

If you would like to speak to any of our mortgage contacts about financing your French property purchase then we’d be glad to hear from you. Click here to contact us.