18 June 2019 - French Mortgage News | International Mortgage News | Partners News |
Why you should always use a French mortgage broker and how to choose the best
If you break your leg, you would naturally go and see a doctor, when you want to change energy supplier you’d consult a comparison website to find out your options. Either way, you are looking for an expert and a one-stop shop to solve your problem. That same logic applies when purchasing overseas (often in a country where you don’t speak the language and aren’t familiar with the banking, lending or purchase process); you’d be wise to consult a specialist French mortgage broker.
Why use a French Mortgage Broker
Saves you time and money
First and foremost, using a French mortgage broker will take the legwork out of looking for a French mortgage. There are no comparison websites for non-resident French mortgages and most banks don’t even advertise the fact that they will lend to non-residents so the only way to search the whole market and compare the deals that are available to you is to use a French mortgage broker – and one that has established relationships with national and local French banks (as a lender’s appetite to lend to non-resident really does differ from branch to branch and on location). Moreover, a good broker should be able to negotiate exclusive rates, discounts on fees and also assist you with other aspects of the purchase – like liaising with the notaire, (check your broker is bilingual) your estate agent and any other third party to ensure your purchase completes on time.
It’s a big investment – take the expert financial advice
All UK-based French mortgage brokers should be FCA-registered and CeMap-qualified (the professional certificate required of all mortgage brokers). This means they are qualified to give tailored financial advice and they have a duty of care to you to give the best advice possible. By going direct to a French bank, you will only be talking to sales staff – who are not qualified to give advice, will not be familiar with UK mortgages and income and won’t be able to explain the nuances between the two systems nor advise on the most suitable product based on the client’s circumstances. Plus they are only incentivised to sell their product. You also wouldn’t have the recourse to complain or seek compensation, like you would if you used an FCA-regulated broker.
Greatly improves your chance of success
Using an experienced French mortgage broker will materially improve your chances of success in obtaining a French mortgage and ultimately purchasing your dream French property. It is important to note that you can only ever make one application to a French bank – if you are then refused, you cannot re-apply, even if you decide to purchase a different property or your circumstances materially change. You literally do only have one shot. (Our approval rate is 97%, compared to 50% from the banks’ own sales teams). Couple that with the fact that there are only a limited number of banks that will consider lending to non-residents so each refusal you get narrows down your options considerably. An experienced mortgage broker should know all the different banks that will lend and their criteria and how to present your case in the best possible light. They will also have dedicated underwriters at those banks that only deal with their files. This allows the broker to hypothetically discuss your case and any potential issues before an official submission – ensuring that once your application is received by the bank it is almost guaranteed to be approved.
Hopefully, we’ve convinced you that it’s a good idea to consult a French mortgage broker. Now read our article on what questions to ask a French mortgage broker to make sure you work with the best one.
If you would like to chat your situation through with one of our Mortgage Consultants, please give us a call on +44 (0)20 7484 4600 or complete our request a quote form on our website.
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