Remortgage

[garymx]

Hi, I have a house in the Bordeaux /Libourne area , We have a mortgage on the property.. Can we Remortgage to build a new eco house ! We do not have any income only savings. My plan would be to sell the new build on or off plan pay back the loan then move on to the next new build !

[giantpanda]

Originally Posted by garymx

Hi, I have a house in the Bordeaux /Libourne area , We have a mortgage on the property.. Can we Remortgage to build a new eco house ! We do not have any income only savings. My plan would be to sell the new build on or off plan pay back the loan then move on to the next new build !

Hi!

It will depend on your capacity to pay the current instalments, which then depend how high the remaing mortgage is.

If the present mortgage is a fixed rate mortgage, they will hardly except an " extra sum " at the same rate. None the less you have to look at the other costs, compared to whole new mortgage on the new building.

Best to look at several banks, which does not mean, you can not go back to your bank to negociate the rate;

Yours,

ginaptanda

PS. Now there are new types of mortgages since about one year, called " hypothèque rechargeable " - I have not gone into the details of such contracts.

[Bevdeforges]

Your best bet is probably to talk to your current bank, as well as to other banks in the area. The regulations related to mortgages in France are considerably different from those in the UK and US. Last I knew, banks are not supposed to write mortgages where the payments are more that a certain percentage of your income - so working only off savings could make things difficult. Then again, this is "last I knew" and things could have changed.

There are also some tax advantages to doing "eco" upgrades, but if you have no current income, you may not be able to make use of the tax credits.
Cheers,
Bev

[giantpanda]

Originally Posted by Bevdeforges

There are also some tax advantages to doing "eco" upgrades, but if you have no current income, you may not be able to make use of the tax credits.
Cheers,
Bev

Hi!

This is not quite the case.

If you for example were in a situation to tpay no tax, then you would bet a cheque over the sum ( le crédit d'impôts).

Not to be confused with the " réduction d'impôts" where then you get nothing back if the sum were to be higher than what you have to pay.

Yours,

pomhorn

Crédit d'impôt pour les dépenses d'acquisition de certaines chaudières - Service-public.fr

Here an example of réduction d'impôts.

Crédit d'impôt pour les dépenses d'acquisition de certaines chaudières - Service-public.fr