How is BREXIT affecting the lending rules for UK clients?
Post-Brexit criteria for UK residents are finally getting tougher and lenders are requesting higher amounts of personal contribution while lowering the financing LTV%.
What are the new requirements?
For most (but not every) French lenders, UK residents wishing to obtain a mortgage will have to demonstrate that they are classed as a high net-worth or justify a high level of income.
To be classed as a high net-worth or high-income individual, you will need to earn at least £150,000 per year or have £500,000 in net-assets. For couples, this is required for each borrower.
The LTV% is also affected. UK residents can expect financing their project at 70% LTV% currently which is still above other non-EU nationals (Such as Australians or Americans per example).
The buying process remains the same and UK clients are still freely able to buy French property just like other non-EU citizens.
Our dedicated team of brokers can help you determine your mortgage capacity and prepare a mortgage solution for your review before your next visit to France. The entire team at Private Rate is wishing you a well-deserved rest this Christmas and let every day of the holiday season be filled with joy.
Current mortgage rates for December 2021
| Fixed rate(1) | Term | Monthly repayment
for 10 000€ borrowed |
|---|---|---|
| 1.25% | 10 years / 120 months | 88.69€ |
| 1.30% | 15 years / 180 months | 61.18€ |
| 1.60% | 20 years / 240 months | 48.72€ |
| 2.05% | 25 years / 300 months | 42.63€ |
(1) The indicated rates are given for information purposes and are based on the latest bank rates of one or more of our partners. The rates in the table above do not include the ancillary cost as notary fees, guarantees, insurance and intermediation.
Submit your request for information
With no commitment on your part, submit your detailed request in order to obtain the best financial solution for your project. Our French mortgage specialists will contact you within 24 hours.