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Hi
I wonder if anyone can help please. We are intending to sell our house here in France but we believe we will need a bridging loan (prêt relais) for a short period (I know they are available up to 24months).
But there are a couple of issues, when we took out the mortgage we had a significantly higher income than now and although we have never missed a mortgage payment we are concerned that we would not be able to get the bridging loan due to our much lower income. We have about 65% equity in the property and when we sell we do not intend to have a mortgage.
So...
1. How easy is it to get a prêt relais ?
2. What sort of interest rate is it?
3. Would they lend 60,000 euros ( for the 10% deposit required on the new property) with an income of 24,000 euros even though we have about 700,000 in the property net of mortgage?
Thanks very much in advance
 

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You probably should talk directly to your bank adviser. There are some pretty strict rules here in France about lending, with limits on how much of your income can be taken up by loan repayments. It will probably matter more what your current income is than what your equity position is in the house - but at least give your bank adviser a chance to see what they can do for you.
Cheers,
Bev
 

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Dear Tiff,

To take a bridging loan it is important to have both properties in France.
Currently, the interest rates are approx. 5,5% (depends on the bank).
Is it easy ?

Well, in general the procedure is the same.
As you know already a bridging loan is for a maximum period of 24 months. If, within this period you won't be able to sell the property, the bridging loan transforms automatically to a normal mortgage.
It means, that applying for a bridg. loan you have to fit the "normal mortgage" criteria.

Regards,
Adam
 
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