International mortgages hard to find for French property

Thu, 16 Jun 2011
Achieving an international mortgage for a house purchase in France could soon be more difficult, it has been suggested.

According to the Financial Times, lenders in the western European nation are tightening their criteria for overseas buyers.

It noted that French banks are becoming concerned about the number of foreign investors failing to make repayments on their international mortgages taken out on homes in France.

"The products that are being withdrawn or changed are those that have been developed for the non-resident market and aren't typically available to French residents in the domestic market," International Private Finance spokesman Simon Smallwood told the newspaper.

Athena Mortgages director John Busby added that there has been a rise in the number of would-be buyers applying to French lenders without luck.

The expert claimed that French banks seem to be wary of lending to foreigners at the moment, with everyone from "international platforms to local braches" seeming less keen to part with their capital.

It is even the case that many lenders in France are refusing to accept applications from people who meet the criteria that less than 33 per cent of their gross income will be used for repayments.

Meanwhile, the French government recently announced plans to introduce a new tax on those with second homes in the country.
 
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