Mortgage Lenders in France: Which Are Best For Foreign Buyers?

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Mortgage Lenders in France: Which Are Best For Foreign Buyers?

So you’ve read our Beginner’s Guide to French Mortgages, decided on the type of mortgage you’re looking for, and assessed your eligibility—the next step is to start your French mortgage search. To get you started, here’s a quick overview of the different mortgage lenders in France.

French Mortgage Lenders: Which is Best?

The French mortgage market isn’t quite as comprehensive or competitive as you may be used to in your country of residence. Long-term fixed-rate loans with a high-street bank are still the most common mortgage for French buyers, although that doesn’t mean there aren’t other options available.

Many high-street will consider foreign applicants, especially those with a solid financial profile, but each application will be considered on an individual basis. Equally, the rates and mortgage products available can vary enormously depending on your personal situation.

Let’s look at some of the options available.

French High-Street Banks

There are several different types of high-street banks in France. National banks such as Credit Lyonnais, BNP-Paribas, Société Générale and CIC, and mutual banks such as Crédit Agricole, Crédit Mutual, Caisse d’Epargne, Banque Populaire all offer mortgage loans. La Banque Postale (France’s post office bank) also offers some competitive rates.

Mortgage types and eligibility criteria vary greatly between the banks, but most will consider mortgage applications from foreign buyers. Each of the French banks has different criteria when judging your eligibility, but generally speaking, successful mortgage applications tend to be from low-risk borrowers. If you have a solid financial profile and are looking for a straightforward fixed- or variable-rate mortgage, these banks could be a good choice. Existing clients might also be able to negotiate preferential rates.

However, high-street banks are sometimes less likely to take on anyone who differs from the ‘norm’ – some may not offer loans to self-employed clients, while others are uncomfortable considering company directors. Similarly, some may only offer repayment mortgages, others only fixed-rate mortgages, and the majority of banks won’t consider raising finance against an unencumbered property that you already own.

International Banks

Another popular choice for foreign buyers are the international banks. Abbey National, Barclays, HSBC, Halifax, and Royal Bank of Scotland all lend in France. The advantage of these banks is that they often actively seek foreign investors and may offer competitive rates and products better suited to the needs of foreign buyers. They also all have English-speaking departments making it a much easier process if you opt to apply directly.

Private and Specialist Banks

There are also private banks and specialist property banks that offer mortgage loans in France and these can sometimes offer more varied solutions for foreign investors. L’UCB and Crédit Foncier are two options, but many borrowers access these loans through the use of a mortgage broker.

Using a French Mortgage Broker

Another popular choice for international property buyers is to use an independent mortgage broker. Brokers provide access to the entire French mortgage market, ensuring a comprehensive search of the mortgage products and will work on your behalf to secure the best rates.

International mortgage brokers also have a unique understanding of the needs and complexities of foreign borrowers, as well as both the French and international mortgage markets. For those with less-than-standard requirements or complicated financial profiles, this can be invaluable.

Read our article Using a French Mortgage Broker

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Comments

  • Jim Kinniburgh
    2024-01-29 10:21:52
    Jim Kinniburgh
    Hi there, I hope you can help me with my mortgage with Credit Immobilier de France. My original mortgage was with Bank Patrimoine de France which was taken over by CIDF in 2017. Since then I have had no contact from them. I have continued to make the mortgage repayments. I sold the house on Friday but because the Notaire has had no contact from CIDF he has held back the full amount of the original mortgage plus 20%. I have tried both their publicised phone numbers, 0969393251 and 0185149564 but because their automated system does not recognise my old account number, cannot get through. I have also left a message on their website and have had an automated response acknowledging it but nothing further. I am really desperate to get this sorted and just need a way of contacting them/speaking to them. Any help you can offer would be greatly appreciated. Best regards James Kinniburgh

    REPLY

    • Zoë Smith
      2024-02-02 18:58:42
      Zoë Smith
      Hi Jim, We've been in touch with our mortgage contacts to see if we can find anything out, but I'm afraid we only have the same contact details that you have. In this instance, the best course of action may be to seek legal advice - I'd be happy to put you in touch with one of our legal partners if that's an avenue you'd like to take. Kind regards, Zoe

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