So maybe you feel more secure dealing with a British bank. Maybe you find the sheer “foreignness” of a French bank off putting. If that is the case then you need to weigh up the pros and cons of a U.K. mortgage.
Firstly there is the Language: everyone speaks English, all the paperwork is in English, let’s face it, no unfamiliar words or phrases are going to enter into the equation.
Then there is the familiarity of everything. French mortgages and banking are different from British ones.
Then there is the convenience of it. If you want to keep your British bank account, because you have pension or investment interest coming in, although you are living in France, it is very convenient to be able to write sterling cheques.Therefore it is both convenient and cost effective to have a British mortgage.<!–more–>
If you have significant equity on your present property, raising capital against this is probably your most straightforward option. You could also remortgage your present property with a different lender and use the equity to purchase your French property.
There are a couple of cons which need to be mentioned here; unless you take out a Euro mortgage (your U.K. bank can provide details about this option) you will be affected by the fluctuations of the Euro-pound exchange rates and may end up paying more than you had anticipated. Also if for any reason you do not keep up the repayments, you stand to lose your U.K. property that you used as security. Another con is that interest rates in the U.K. are presently higher than those in France, so repayments would end up being higher.
So there are many aspects to consider before you decide if this is the way you want to go. It is a good idea to consult an independent mortgage advisor who specializes in overseas properties who will be able to better assess your options.
by Carole Hughes, AboutFrenchProperty.com - Copyright © About French Property
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