When buying a property in France, overseas buyers often prefer going for a French mortgage over a lender in their home country. This is because there are a large variety of plans available. French financial institutions also offer buy-to-rent plans. A lot of people invest in a property in order to rent it out, and some French mortgage plans specifically suited for this.
In principle, French mortgages in France follow a similar process to mortgages in the UK. The actual process, however, can be a little different. French mortgages can take a little longer as the process is a bit more formal.
There are two cooling off periods between signing contracts. The first draft of the contract is legally binding and while the buyer can change their mind after signing, the seller cannot back out without incurring a penalty.
If a property has already been found and an offer has been made, the first draft is drawn and signed. Following this, there is a cooling off period which lasts a week. A deposit is usually paid after signing this draft and the mortgage is applied for.
Mortgage lenders then process your documents and an offer is made. The second cooling off period follows this offer. This lasts for about ten days and after which the buyer can accept or reject the offer.
French mortgage plans also include buy-to-rent schemes which allow buyers to offset their interest payments against the rental income from the property. Duration of French Mortgage plans in France can range from 5 to 30 years.
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