6. French Mortgage Lending Terms

1. 6.1. Mortgage Application
   6.2. Loan to Value Ratios
   6.3. Income Criteria
   6.4. Mortgage Interest Rates
   6.5. Mortgage Fees
   6.6. Mortgage Protection

6.5. Fees Payable on a French Mortgage

The costs associated with setting up a mortgage are not insignificant, although with fees on the increase in the UK and elsewhere, it is a moot point as to whether they are higher than other countries.

The lender may request that a survey for the purposes of valuation is carried out, but this is by no means a general rule. Many lenders are happy to accept to lend against the purchase price. If you are lending against you current home, then a valuation survey is more common.

As we outlined on previous pages, the level of the fees will depend in large measure on the type of finance you are able to obtain – whether conventional mortgage or other form of loan guarantee.

A conventional mortgage, called a hypothéque, is (slightly) more expensive than other forms of loan guarantee, so if possible you should ask the lender whether other loan guarantee options are available to you.

You also need to take out obligatory insurance/mortgage protection costs which are about 0.5% of total costs.

In some cases the administrative costs can be reduced or waived, particularly in relation to subsidised mortgages, or where an institutional guarantee is being used over a conventional mortgage.

Look out also for early redemption fees, which may be circa 3%, but, once again, these are negotiable. They are more likely to apply in relation to fixed rate mortgages than a variable rate mortgage.

Negotiate with your lender over the fees and shop around!