Self-employed applicants will be asked for additional documentation such as bank statements concerning the company’s bank accounts, statements of accounts (i.e. profit and loss accounts) and SA302 tax calculation forms.
Once your mortgage application has been studied, if you're successful, a ‘decision in principle’ (DIP) will be issued.
Choosing the right mortgage for you
There is a choice of mortagages - either fixed or variable rate. The duration may run from two - 25 years.
Fixed rate mortgages over a longer duration tend to be the popular choice in France compared with the UK where variable rate and interest only mortgages are often the first choice.
At CA Britline, a fixed rate means fixed for the whole term of the mortgage.
Redemption fees may be applied if you decide to pay it off before the end of its term. Generally the fees will be the equivalent to 3% of the capital reimbursed or 6 months’ worth of interest. The lower of the two amounts will be applied.
Variable rates can be capped at different levels and some mortgages, depending on the characteristics of your project, can have a 0% rate of interest. Eco loans are also available.
All CA Britline mortgages are Capital Repayment only and include options to allow monthly repayments to be as flexible as possible.
Increasing or decreasing your monthly payments or taking a break is possible (subject to terms and conditions).
Life insurance
Life insurance called ADE (Assurance Décès Emprunteur) is recommended when taking out a mortgage. In the event of death during the term of the policy, it covers the outstanding debt. There is no fixed cost for this type of policy as it depends entirely on individual circumstances.
The Mortgage offer
Once you have accepted your Decision in Principle offer, the official mortage offer will be issued and you then have have a cooling off period. After this, if you want to go ahead, the offer should be signed and returned by post.
Once the paperwork is complete your Notaire is updated with the information.
The Notaire will later send a request for the mortgage to be released based on the date of the Compromis de Vente signing - the day you take ownership of your French property.
For further information visit britline.com Email [email protected]
*Mortgages via CA Britline for the purchase of properties in France only.
In the next edition of The Good Life France we will be talking about Savings Accounts and what is available in France.