Escape from LA

By THIS IS MONEY
Updated:

 

I HAVE a friend, aged 35, and a UK citizen, living in America. He has a small restaurant in Los Angeles and would like to raise a mortgage to buy a property in France (three or four-bedroom house). Could you help us to find a mortgage lender and give advice? A, Cleethorpes.

Simon Conn of Conti Financial Services says: Finding mortgage loans for property abroad is not easy. Conti Financial Services can provide loans for homes in France for people overseas but you should find out a bit about buying in France before you go ahead.

There are no non-status/self-certification mortgage facilities available in France (although renting out your property is permitted).

All loans must be supported by a minimum requirement of proof of income - that is, if employed, copies of your last three month's payslips and copies of your latest P60/employer's reference together with copies of your last six month's personal bank statements . If you are self-employed you need copies of your last three years audited accounts and copies of both your last 12 month's business and last six month's personal bank statements.

French lenders do not take into consideration any proposed rental income from the property for mortgage purposes/repayments. Loans are based on your joint net 'take home' pay and calculated on an affordability basis.

All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit cards (if the balance is not cleared on a monthly basis) and any maintenance payments together with your proposed French mortgage payments must not exceed 32% of your net monthly income. Bear in mind that if you are borrowing in one currency and get paid in another you will be exposed to changes in currency rates as well as changing interest rates. For more information, try www.overseasandukfinance.com.

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