Welcome to Beaux Villages Immobilier

The award-winning estate agency putting you first

Beaux Villages Immobilier

The award-winning estate agency putting you first

Brexit and French Mortgages

As of today, there is no change in the process of buying a property in France and in the way lenders study a mortgage application.

Some important points to take into account :

The Pound has devalued but is well above the previous low levels: it has kept relative stability and sterling weakness is not as dramatic as economists predicted.

Whilst the vote was in favour of Brexit, the negotiation process has not started yet and will take up to 2 years, and possibly longer. So there should not be any dramatic changes in the immediate future. Also, France remains a top hotspot for visitors.

Information for British cash buyers :

At times of fluctuating exchange rates, a French Euro-denominated mortgage may allow your cash buyer to buy now rather than later and also reduce potential currency losses.

Regarding the choice between paying cash or using a mortgage to finance a project, it is up to the client to decide how they wish to proceed. However, they should bear in mind that the cost of transferring the whole purchase price can be very high at a time of “bad” exchange rate between £ and € as we may now experience. It may be better to transfer only part of the purchase cost (the deposit) from Pounds to Euros and borrow the rest (via a mortgage) in Euros.

Although a client may not “financially” need a mortgage, lenders advise UK customers to consider taking out a mortgage on their French property and leave their UK assets available and as un-mortgaged as possible. It is also logical to keep assets and liabilities in the same currency.

What if the exchange rate improves?

If the rate improves down over time, clients can transfer funds towards the Euro mortgage choosing the best time to do so by transfering a lump sum of Pounds when the exchange rate is favourable and simply paying the minimum repayment amount when the exchange rate is not as favourable. The client could also manage repayments to their best with the help of currency exchange companies fixing the exchange rate € /£ for periods up to 2 years.

Variable capped rate mortgages have no early repayment penalties so that the client can also choose to repay the mortgage in full at a time where the exchange rate is more favourable.

BNP alone offers interest-only mortgages and also has a mixed interest-only and capital repayment product – Fifty-Fifty, or Start Up – where the client has an initial interest-only period of 5 to 7 years followed by a classic capital repayment mortgage. This helps to keep the monthly repayment to a minimum.

Lenders can typically finance up to 85% of the FAI price (excluding notaire and mortgage registration fees). The minimum mortgage amount is 75 000€.

More blogs...




What you say about us...

Beaux Villages in the press

telegraph The Times The Times

This site uses cookies to ensure you get the best browsing experience.

If you continue to use the site you agree to receive cookies. Learn more

I understand

Cookie Policy for Beaux villages Immobilier

This is the Cookie Policy for Beaux villages Immobilier, accessible from beauxvillages.com

What Are Cookies

As is common practice with almost all professional websites this site uses cookies, which are tiny files that are downloaded to your computer, to improve your experience. This page describes what information they gather, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored however this may downgrade or 'break' certain elements of the sites functionality.

For more general information on cookies see the Wikipedia article on HTTP Cookies.

How We Use Cookies

We use cookies for a variety of reasons detailed below. Unfortunately in most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to this site. It is recommended that you leave on all cookies if you are not sure whether you need them or not in case they are used to provide a service that you use.

Disabling Cookies

You can prevent the setting of cookies by adjusting the settings on your browser (see your browser Help for how to do this). Be aware that disabling cookies will affect the functionality of this and many other websites that you visit. Disabling cookies will usually result in also disabling certain functionality and features of the this site. Therefore it is recommended that you do not disable cookies.

The Cookies We Set

Third Party Cookies

In some special cases we also use cookies provided by trusted third parties. The following section details which third party cookies you might encounter through this site.

More Information

Hopefully that has clarified things for you and as was previously mentioned if there is something that you aren't sure whether you need or not it's usually safer to leave cookies enabled in case it does interact with one of the features you use on our site. This Cookies Policy was created with the help of the CookiePolicyGenerator.com

However if you are still looking for more information then you can contact us through one of our preferred contact methods: