5. Mortgage Types in France

French mortgages are available in many different forms, but the main types are as follows:

1. 5.1. Capital and Interest Repayment
2. 5.2. Interest Only
3. 5.3. Bridging Finance
4. 5.4. Equalising Mortgage
5. 5.5. Equity Withdrawal
6. 5.6. Equity Release

5.1. Capital and Interest Repayment

French lenders offer the standard capital and interest repayment mortgage, in the form of either straight line or increasing capital repayment plus interest, which is paid off each month over the duration of the mortgage.

The maximum amount of the loan is generally no higher than 70%-80% of value.

The mortgage may have rates that are fixed or variable.

If you have no existing mortgage on your French property, then there is no reason, in principle, why you cannot obtain a repayment mortgage for home improvement or other expenditure, i.e. equity withdrawal.

Many lenders are not prepared to lend under a minimum amount. It is generally not less than €50,000 but may be as high as €100,000.

Rates start at about 2% above Euribor.