| French Mortgage |
UK Re-Mortgage |
Savings |
| Offset French income tax with rental income |
Pay French income tax on any rental income, if applicable |
Pay French income tax on any rental income, if applicable |
| Offset Wealth tax with mortgage |
Pay Wealth tax in full |
Pay Wealth tax in full |
| Transfer modest amount to pay initial deposit - with associated costs and currency exchange risks |
Transfer a large amount of funds to France to cover the full purchase price –with increased associated costs and increased currency exchange risks |
Transfer a large amount of funds to France to cover the full purchase price –with increased associated costs and increased currency exchange risks |
| No transfer necessary from France to the UK of rental income received in France as it will be used to pay the mortgage |
Continual transfer of rental income back to the UK required and associated costs/currency exchange risks |
Continual transfer of rental income back to the UK required and associated costs/currency exchange risks |
| Interest rates based on a traditionally lower base rate – the average Euribor over the last 8 years is 3.24% |
Interest rates based on the Bank of England base rate – need we say more?! |
N/A |
| Loan secured on French property only –keeping your home address and UK assets free of risk |
Loan secured on UK property –exposing your home address to repossession |
N/A |
| Full proof of income must be provided with the application |
“Non status” and “self-cert” mortgages available |
N/A |
| Need to pay a fee to register the mortgage in France – it is obligatory for all mortgages taken in France to be registered at the “Bureau des Hypotheques”. There is a fee for doing this. There is also a fee for removing the loan from the Bureau when it is repaid. It typically costs 1-1.5% to register the mortgage and about half that to remove it depending on the size of the mortgage. |
No mortgage registration fee to pay in France. There will be costs involved in re-mortgaging your UK property such as approx: £250 mortgage release fee, £300 valuation fee, £300 solicitors’ fees. |
N/A |
| Mortgage arrangement fee charged by the French lender can range from 0€ to 1% of the mortgage amount |
Mortgage arrangement fee charged by the UK lender can range from 0-3% |
N/A |
| Extensive protection under French consumer law |
Reasonable protection under UK FSA |
N/A |
