There are different ways to find cash for a property purchase. If you are among those who want to buy a property in France but find it difficult to get the finances, the following tips may help you.
- Apart from selling your own UK property, the first thing you can do is to rent out your UK property so that you can take a French mortgage. The rental income of your own property will help you pay the mortgage off for the new property.
- If you do not own a property, a solution is to take a French mortgage but the difference lies in the fact that you will repay it from your UK salary.
- The third solution you can exploit is taking a UK mortgage. It is probably the most standard and usual way to buy a property in the UK. However the rates in the UK are usually higher than those for French mortgages.
- If you are property owner in the UK, you can also remortgage or get a mortgage on your UK property. This will enable you to release enough equities for your French purchase because the property prices in France are still cheaper compared to the UK.
- The last alternative is an equity release on your Spanish villa. This means unlocking some of the value in your home by taking out an equity release plan, enabling you to make the most of your property to generate the cash when you need it. That is to say, if you have a property in Spain, you can take a loan on it to finance the one you want buy in France. This solution suits people who are "asset rich but cash poor" according to Bill Blevins (from Blevins Franks Company).
Now you have all the clues to finance your French property. You must wonder which one suits you best by answering simple questions, such as "do I want to sell my property, rent it out or none" or "how much do I need".
You can apply for a French mortgage with a free quote on this page: French mortgage
5 Different ways to finance your French property