French Holiday Homes
France is at present, the most popular international tourist destination in the world. It currently receives over 75 million foreign tourists every year. France is bordered by Belgium, Switzerland, Germany, Luxembourg, Italy, Monaco, Andorra, and Spain.
France is linked to the UK by the Channel Tunnel. Many holiday home owners use the Eurostar train service, which passes underneath the English Channel. Long gone are days of buying barns / cottages to renovate for £5000, but it is still one of the most popular choices for the British when it comes to buying holiday homes.
Good news - obtaining a mortgage here is easy compared to some countries. You can either visit a French bank or a British bank that does business in France. The lending institutions in France will generally evaluate your loan/mortgage based on your income not your net worth.. Your income can include revenue from your salary, , investments, pensions, rental income and other sources.
The banks will not lend above a debt ratio of 33 percent. This means your overall debts, worldwide(not just France), cannot exceed 33 percent of your total income. Also, the monthly mortgage repayments must not be more than 1/3 of your monthly income.
Generally you will be able to obtain finance for up to 80 percent of the purchase price and renovations for a period of up to 25 years (depending upon your age). If the property you are purchasing will be generating rental income, it can often be included in the formula.
These days the lenders are being more flexable in their approach to foreign buyers. Lenders are beginning to provide more attractive financing options. These include increasing the amount they will lend, extending the term of mortgage, providing faster turnarounds on approvals and increasing the age limit for lending. French Estate Agents can be found Here.