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French mortgages are not that different to UK mortgages; they are usually of repayment type with a term of between 5 and 20 years. As in UK, fixed rate and variable rate options exist and redemption penalties will sometimes apply. A larger deposit will often secure a more attractive interest rate but minimum deposit is 20%. Arrangement fees of around 2% are also normal on French mortgages.
French financial services legislation dictates that life insurance to cover mortgage is taken out and also that a mortgage offer once made, must be accepted no earlier than 10 days and no later than 30 days after offer has been made.
This article only provides a general appreciation of how French property can be financed and it is not advice. Guidance should be sought from a specialist who is qualified to advise on best method of financing in your specific circumstances.
Copyright 2005 Oliver Phillips. May be freely reproduced "as-is" for private and commercial use.
Oliver Phillips works for PFS France (http://www.propertyforsalefrance.co.uk/) a business that helps French property owners advertise and sell, and potential buyers find, some of the finest and best cared for traditional French properties available.