How to finance your property purchase is obviously a huge consideration for all buyers. If you are not in the fortunate position of buying a property with cash then you will need to get a mortgage. Below is a summary of the different options available to British property investors looking to by in Val Thorens.
Mortgage in France
Generally, French mortgage rules are fairly similar to the UK, however lending criteria can be a little stricter but French lenders are offering longer terms for very good value fixed rate mortgages.
Fixed term mortgages are great because you will know your Euro liabilities for a long time. However, a big problem for British owners is the exchange rate, so there is never any certainty of the real cost of a French mortgage if your income is in GBP.
Typically French lenders will not exceed a loan to income ratio of 33% though some lenders will increase this percentage for higher levels of income. They often will only lend 80% of the value of the property.
Mortgage in UK
Most high street banks will offer specialist products for overseas property purchases. It is often easier to obtain a mortgage from a UK bank as they will have ready access to your lending history. You can also eliminate any risk from currency fluctuations.
Though these products are often not as good value as a local mortgage
Remortgage your home
As British buyers tend to be purchasing a second home in France they may be able to remortgage their UK residence to finance their purchase
A good overseas mortgage broker will be able to offer you advice on affordability and the types of mortgages available. Please contact us for introductions to our network.