French Cash-raising and Re-mortgage Products

What to expect?

We have been working with French lenders for a number of years to ensure that competitive re-mortgage and cash-raising mortgages are introduced to the market. We are now able to offer, exclusively to Assetz Finance clients, a range of excellent products on both a capital repayment and interest-only basis. This type of re-financing is available on first homes, holiday homes, investment properties and even commercial premises.

For the advantages of securing a mortgage in Euros on the Euribor rate, please consult our Euribor Information page.

How can I make the most of my Frech property?

French lenders have traditionally been unwilling to offer re-mortgage or cash-raising mortgage deals. Assetz Finance has worked with French lenders over the years in order to release a number of exclusive re-mortgage and cash-raising packages for our clients. These products allow you to make the most of the equity in your French property.

The products allow our clients to re-mortgage to a better mortgage package than their current deal whilst also releasing cash from the property that has risen in value since its purchase. Owners of French property that was purchased outright, using savings, can now unlock these funds from the property using our cash-raising products.

Straight re-mortgages are available in France. Therefore, if you find that you could be saving a lot by having a mortgage with another lender, a re-mortgage could be considered. However, re-mortgages can prove expensive in France, which is why it is important to first check with your finance consultant whether it is worth re-mortgaging.

How can I use the cash that I release?

Funds raised on French property allow UK borrowers to carry out home improvements, to use as a deposit on another purchase or even to repay more expensive debts back home, such as loans and mortgages that are on higher rates.
 
To gain the most competitive cash-raising mortgage product, the lender needs to be aware of, and agree to the borrowers’ plans for their raised funds. Most lenders are happy to assist borrowers to raise funds from their French property in order to buy and refurbish property, to pay off existing debt or to invest - however if they consider the new mortgage to be for debt consolidation purposes, they will most certainly decline the application. Make sure you discuss your plans with your financial consultant to ensure that you are given the appropriate advice.

If the funds are to be used for business reasons (to start or invest in a business venture) a Commercial Mortgage will be required, although these are not offered by all lenders. There are also restrictions if the property to be used to raise cash is owned by a French holding company, with only certain lenders able to assist. It is therefore extremely important that the right lender is sourced depending upon the intended use of the funds.

The most attractive mortgage deals for releasing equity from a French property are available if the raised funds are deposited with a Notaire, who will then ensure that they are paid directly to their required destination - such as the builder carrying out the refurbishment of your property, the solicitor in charge of your intended purchase, the bank whose mortgage you are repaying or a solicitor in the UK, who will ensure that the UK-based lender is repaid.

Some lenders are now happy to offer cash against your French property to use as you wish (of course within legal limits). This may be useful if you wish to finance works on your property that you are carrying out yourself, or to buy yourself a dream cruise, etc.

Rates will be generally higher with this type of product as the lenders consider their risk to be greater.

Making the most of current Euro rates

Equally, whilst the Euro remains strong against the Pound there is a lot of sense in moving a lump sum of Euro denominated cash (released using a mortgage secured on a French property) back to the UK. Whilst a lump sum of €30,000 moved from France back to the UK at the end of 2007 would have given the borrower £22,000, today this amount would offer the borrower a return of £27,000 - a significant increase.

To speak with a member of the Assetz Finance team please call 0845 400 8000
or 0161 482 7758

Links

French Mortgage Application Form

Cash Raising and Re-mortgages
French Mortgage Guide

Euribor Rates
Why Take a Foreign Mortgage?

Overseas Mortgages

Guide to Investing Abroad

Read our guides to buying and financing foreign property for more insider tips in our members area.

Call Back Request

Can’t find what you are looking for? Or want to chat through your options with an experienced mortgage adviser? Then let us know what time and day is best and we will call you.

Currency Exchange

As soon as you start looking at property abroad you should open an Assetz Currency Service Account. There is no cost associated with opening an account, and no obligation. It simply ensures that you are ready to act quickly when the need arises, taking advantage of the favourable exchange rates available via the Assetz Currency Service.

Deal of the Day

Look out for Deals of the Day, often unique to Assetz Finance, these deals could save you thousands of pounds. It is important to get the right deal for your circumstances whether for your home, holiday home or investment property mortgage or for your home insurance or life policy. The Deal of the Day could be just that. Speak to one of our Advisers to see which deals are the best for you.

Members’ Area

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