Do you own a property in France with NO mortgage on it?

Look no further – release the equity from your French property and obtain cash quickly.

Equity Release is a term commonly used to indicate the release of capital from a real estate property.

In France you can release up to 70% of the current value of your French property in cash.

There is a minimum loan amount of 500,000 euros.

The mortgage product allows you to release funds from your French property.

No monthly payments.

No interest roll-up.

One-off ballon payment of both capital and interest accrued at end of agreed term.

Enquire within.

Equity Switch mortgages in France are now available for up to 70% of the current market value of the property.

The transaction can only go via a French Notary - the financial institution releases the monies to the Notaire who in turn passes it onto the client.

Only available on residential-style homes.

Anything commercial - please enquire within.

Mortgage product is 100% Interest Only.

Short-term repayment duration.

It makes financial sense to release equity on your property, rather than take out a personal loan, as the interest rate on a French mortgage will be far lower than that charged on an unsecured personal loan.

French equity release mortgage interest rates are generally 1 - 3% below the UK/USA equivalent, so it may be cheaper to borrow the money in France.

Also, it is generally accepted that it is safer to have your exchange rate risk based on the monthly mortgage payment of the value of the entire property.

Before applying, it’s important to have an Estate Agent provide a conservative valuation of the resale value for your French property.

There are also transaction costs to plan for when considering if your current property value is high enough for the project to make sense.

By taking on an Equity Release mortgage in France, you will also have to pay mortgage registration tax (“hypothèque”) which varies depending on the loan amount.

In all cases, a French Notaire must change the charge registered on the title of your property from the old bank to the new bank, the cost of this tends to be about 1.5% of the new loan amount.

French banks will typically charge up to 2% - 3% as a fee to set up the loan.

ICE Finance charges a fee as specialists which will be payable on acceptance of your mortgage offer.

The first step is to speak with a professional French mortgage broker at ICE Finance who will ask a few important questions to establish your eligibility with a number of different banks.

Request a pre-approval decision now and let us work out how much Equity you could release from the French property you already own.

French mortgage products for ‘Equity Releases’ are designed to maximise security for both the borrower and the financial lending institution.

Therefore these loans will be on a short-term fixed rate agreed at the outset and fixed for the entire credit loan term.

Credit loan is a monthly loan structure, rolling over on a month-by-month basis, for a maximum period of 24 months.

Interest rate is typically a short-term dated fixed rate for up to 24 months.

Guaranteed by EuroZone Money Market Bonds.

As of April 2022, typical fixed interest rate is 1.00% pcm

Following the changes in the mortgage application process of certain EU countries, obtaining a mortgage in France is no longer harder to do than in neighbouring countries such as the UK.

Of course, the French are still very protective over the financial markets, including those relating to French second home mortgages products but in many ways this is why it is possible to source such favourable rates over such long periods.

This security means however that non-status lending and self-certification mortgages are not available.

Each of the French banks has a slightly different underwriting criteria and so requires a slightly different set of supporting documents.

Some banks may also require documents to be certified by a finance or legal professional – we will advise accordingly based upon your own personal circumstances and French property project.

For the Equity-Release mortgage product, it will be paramount to independently assess the current market value of your property and also for the ownership of your property to be within a SPV-type Real-Estate Holding Company.

Enquire within.