French mortgages are lent and repaid in euros, so if you earn in pounds, dollars or a currency pegged to the dollar, your monthly cost moves with the exchange rate. On ECB reference rates, a €1,500 repayment has ranged from about £1,236 to £1,354 and from about $1,435 to $1,796 over the last five years. Banks allow for this when they assess you, and you can make the cost more predictable with regular transfers, fixed-rate conversions or euro income from the property.
What moves your monthly cost
| A €1,500 monthly repayment | Lowest cost | Highest cost |
|---|---|---|
| In pounds, last 5 years | £1,236 | £1,354 |
| In dollars, last 5 years | $1,435 | $1,796 |
Our calculation on ECB euro reference rates, 10 November 2021 to 9 November 2026. Providers' own rates include their margin. UAE dirhams and most Gulf currencies are pegged to the dollar, so the dollar figures are a fair guide for Gulf incomes.
Over a 20-year loan, the rate will move many times. The question is less where it goes than whether your budget still works if it moves against you for several years.
How French banks allow for it
Banks assess your income in euros and then build in a margin for the exchange risk. A Paris buyer's agent reports that banks cut the borrowing capacity of dollar earners by 10 to 20% (Home Select), and brokers note that some banks apply a discount to foreign-currency income or price expatriate files slightly higher. Others ask for savings held with them or a larger deposit.
The French rules on foreign-currency loans are written for loans in a currency other than the euro. On their wording they do not cover a euro mortgage, so expect to carry the exchange risk on your income yourself. A lender that does not want that risk will lend less rather than lend in pounds or dollars.
Setting up the repayments
- The account. Many lenders ask for a euro account in France, often with them, to collect the monthly repayment, which you fund from abroad. If you already hold a euro account elsewhere in the EU, EU payment rules stop a lender from refusing a direct debit only because the account is in another member state. The guide to French bank accounts covers what banks ask for.
- Regular transfers. A monthly transfer timed a few days before the repayment keeps things simple. Compare the rate you receive, not only the fee.
- A buffer. Keeping two or three months of repayments in the euro account absorbs a late transfer or a bad month for your currency.
- Fixed-rate conversions. Some providers let you fix the rate for a series of monthly transfers, which makes a year of repayments predictable.
- Euro income. Rent from the property, if you let it, arrives in euros and offsets part of the repayment. Banks count only part of the rent, and only rent they can verify.
If you would like a currency specialist to contact you about the deposit, the notaire funds or your repayments, tick the currency box in your eligibility check, or ask your broker. It is never a condition of the introduction.
The currency specialist we introduce is run by the founder of this site.
Questions to ask your broker
- How does each lender convert and discount my income?
- Would a larger deposit or a shorter term make the loan more resilient to a fall in my currency?
- Can the repayments be collected from an account I already hold in euros?
- What happens if I want to repay early, for example after a sale or a good exchange rate?
The guide to early repayment covers the penalties French law allows.
Questions
Can I get a French mortgage in pounds or dollars?
French property loans to individuals are almost always in euros. Borrowing in pounds usually means a loan secured on a UK home.
Do French banks reduce foreign income when assessing a loan?
Many build in a margin for exchange risk. A Paris buyer's agent reports cuts of 10 to 20% in borrowing capacity for dollar earners; others ask for savings or a larger deposit instead.
What is the cheapest way to pay a French mortgage from the UK?
Usually a regular transfer through a specialist provider rather than a high-street bank, compared on the exchange rate received as well as the fee.