French Banks and Mortgages in the Aude

FINANCING YOUR PROPERTY PURCHASE

Once you are sure of which property you wish to buy, you may need to get a mortgage to achieve the purchase. You therefore have two choices:


- To get a loan through a bank in your own country. If this is the case, in French Law you will not be considered as having a loan, which will therefore mean that you cannot add a suspension clause subject to obtaining a mortgage. The consequence of this is that once the cooling off period has passed, if you cannot purchase the property because you do not have the money to do it, you will lose your deposit.


- To get a mortgage with a French bank, usually through their International branch. In this case you will have to mention that you are getting a loan with a French Bank and then you can add a suspension clause in which you stipulate that if the mortgage is not accepted you are not committed to buying the property. In this case your deposit would be refunded. 

The following are the different types of mortgage available:
In France, you can get a mortgage in Euros before or after purchase and there are two different kinds of mortgage:
• Capital Repayment: you will be repaying interests and capital every month 
• Interest Only: you will be repaying only interest every month. The capital will be repaid at the end of the term. 

You can also benefit from two other options:
• Raising some equity against a property you already own in France 
• Moving your French/UK mortgages to a French bank 


In each case you will have to provide some documents in order to have an offer prepared. Your identity and that of your spouse (if applicable), your incomes, the purpose of the loan, etc. You will also be asked to complete a document regarding your health situation and some banks may make this a stipulation on the acceptance (or not) of the amount asked for. 
Then, and in addition to all the information provided, the bank will produce an offer which will include the identities of the parties asking for the mortgage, the purpose and procedure, the duration of the loan, the percentage of the interest, the amount of the loan and the payment per month, as well as the different insurances you are committed to having and the different type of securities conditional on the agreement of the loan.
Once received you have a ten-day cooling off period and on the eleventh day you will have to send the offer duly signed to the bank, which will put the mortgage in place. Then the notary will be made aware and he will ask the bank direct for the amount of the loan due to buy the property and you will be asked to pay the balance (with the fees the notary takes on the mortgage).


When taking a loan you have different sureties associated with the mortgage:
1) Personal risk insurance: The borrower usually takes an insurance relating to personal risks i.e. death, invalidity, or even unemployment. The bank is the beneficiary of this insurance.
2) Guarantee: this could be either an individual or a legal entity (which usually receives commission during the whole period of the mortgage) that could reimburse on the borrower’s behalf if they are unable to do it. It means that if the borrower cannot pay back the mortgage, they will be committed to paying.
3) Mortgage: through this you allow the bank to sell your property in order to get reimbursement.
4) Lender’s lien: This is a traditional guarantee less expensive than a mortgage, but it only concerns old properties (not the Sold off plans ones) 
These are the fees payable for a loan of 150,000 euros at the Notary’s office (which is necessary to have them registered into the Official mortgage register which is compulsory when making a loan):
– Mortgage fees: 2 820 €,
- Lender’s lien fees: 1 690 €,
- Guarantee through individual or legal entity: 1 700 €, a part can be refunded (1 050 €), so it would be a net cost of 650 €.

This is the usual way of proceeding with a mortgage but the best advice is to contact different banks and collect as much information as possible to ensure you have a loan which will allow you to buy your dream property with a maximum of security for you and family. 
EVE MALTESE

Banque de France

Financial institution works with the European System of Central Banks (ESCB) to implement the single monetary policy, foreign exchange policy and international relations. It also works with the ESCB to issue and maintain banknotes and coins.
www.banque-france.fr


Banque Populaire de Lorraine
Bank specializes in serving the financial and insurance needs of private individuals as well as self-employed workers.
www.bplorraine.fr

Banque Transatlantique
Bank offers online services, asset management and international relocation services.
www.transat.tm.fr
 
BNP Paribas

Specialized international banking group with a European base that focuses on expanding markets, emphasizing technological innovation, creativity, worldwide presence and distribution.
www.bnpparibas.com
 
Calyon: Corporate & Investment Bank
Provides corporate financing and investment banking in France.
www.calyon.com
 
Crédit Mutuel
Full-service European bank organized dealing with private customers as well as businesses.
www.cmutuel.com
 



French Banks and Mortgages in the Aude

Home | About Us | Buying Process | Find Accommodation | Travel Page | Privacy Statement | FAQ's | Site Map | The Languedoc | Contact Us |