Dreaming of a ski chalet in the Alps or a sun-soaked villa on the Riviera? Good news, financing that French dream is becoming easier. The French non-resident mortgage market is bouncing back, and UK buyers now have more options than they’ve had in years.
A market in recovery: more choice than ever
Over the past 18 months, the number of lenders offering mortgages to non-residents has increased fivefold. This marks a major turnaround from the lows of 2022, when rising interest rates caused many lenders to withdraw from the market. More lenders mean more choice and more opportunities to secure a deal that suits your needs.
Mortgage vs. cash: why many are choosing to borrow
In today’s uncertain economic climate, even cash-rich buyers are reconsidering how they fund property purchases. Many are turning to mortgages—not out of necessity, but as a strategic choice to manage risk and make their money work harder.
Currency risk mitigation: A French mortgage can significantly reduce exposure to exchange rate fluctuations. For example, with an 80% mortgage, a buyer’s currency exposure drops from 100% to just 20%, since the liability is maintained in euros, matching the currency of the asset.
Capital preservation and opportunity cost: French mortgage rates remain attractive compared with potential investment returns. Locking capital into a property purchase could mean missing out on higher returns elsewhere.
- 15-year fixed French mortgage rate: from 3.83%
- Average stocks & shares ISA return (Feb 2024–Feb 2025): 11.86%
(Source: Moneyfacts.co.uk)
Tax efficiency for rental properties: Mortgage interest can be offset against rental income, reducing taxable profits and thereby lowering the income tax burden on rental earnings.
Wealth tax benefits: French wealth tax (Impôt sur la Fortune Immobilière, IFI) applies to property assets exceeding €1.3 million (net value). Mortgages in euros can be used to reduce the taxable value of the property.
Recent High-Net-Worth client completions
Here are some examples of HNW clients who have completed recently, encompassing the range of lending we can assist with:
- Purchase of an existing property in Mougins
- PP €3m and LA €1.5m (50% LTV)
- British couple living in UK
- 95% fixed for 15 years; No ERC’s after 5 years
- No requirement for life insurance
- No AUM requirement
- Offer issued within four weeks of submission
- Purchase of an Off Plan (VEFA) property in Morzine
- PP €780,000 and LA €624,000 (80% LTV)
- British couple living in UK
- Early repayment charges waived after five years
- 10% fixed for 20 years
- No requirement for life insurance
In France, mortgages are typically long-term commitments. Unlike in some countries where you might switch lenders after a few years, French mortgages are generally held for the duration of the loan. This makes it crucial to select the right lender from the very beginning.
Giving you the full picture
The French mortgage process can feel daunting and complex, but with our expertise and support from the outset, there is no reason for it to become stressful or cause delays to your property purchase. We guide you through every step, making the journey smooth and efficient, so you can focus on enjoying your new home.
See our article Thinking of buying property in France? Here’s what you need to know about the buying process
