UK high-street lenders generally do not lend against property in France, so a UK mortgage for a French home usually means borrowing more against your UK home. The alternatives are a French bank mortgage secured on the French property, a private bank loan secured on investments, or cash with a smaller French loan. They differ in what is put up as security, the currency of the debt and what happens when you sell. None suits everyone, so compare the full cost of each in pounds and in euros.
Why UK lenders rarely lend on French property
Banks tend to offer mortgages only in countries where they have offices, and UK high-street lenders lend against UK homes. A house in France is valued, charged and, if it ever came to it, sold under French law through a notaire. That sits outside what a UK high-street lender normally does.
So when people look for a UK mortgage for a property in France, what they can usually get is a loan secured on the home they already own in the UK. The French property itself is financed by a French bank, a private bank or your own money. The non-resident mortgage guide explains who lends in France and on what terms.
Four ways to fund a French purchase from the UK
- A remortgage or further advance on your UK home. A further advance is extra borrowing from your current lender, and it usually comes on better terms than a second-charge loan from another lender. Moving to a new lender for a larger loan may trigger an early repayment charge on your current deal, typically 1–5% of the amount repaid. Lenders ask what the money is for, and some will not lend more to buy a property you plan to let out.
- A French mortgage on the French property. A French bank lends in euros, secured on the home you are buying. Strong UK files are typically financed at 70–80% of the price, with all your repayments, including your UK mortgage, kept within 35% of net income over 25 years at most. The loan is governed by French consumer law, and French lenders and brokers are regulated in France, not by the FCA. The guide for UK buyers covers documents and lenders.
- A private bank loan secured on investments. Often called a Lombard loan, it is secured on a portfolio you hold with the bank. If the portfolio falls in value, the bank can ask you to repay part of the loan or add funds at short notice, and it may sell investments if you do not.
- Cash plus a French mortgage. You pay the deposit and the purchase costs, 7–8.5% of the price on an existing home, from savings or UK equity, and a French bank lends the rest. French banks rarely finance purchase costs for non-residents, so every French mortgage needs some cash of your own. The question is how much.
The options side by side
| At a glance | UK remortgage or further advance | French mortgage | Private bank loan |
|---|---|---|---|
| Security | Your UK home | The French property | Investments held with the bank |
| Currency | Pounds | Euros | Agreed with the bank |
| Rate | Usually fixed for 2–10 years, then the lender's standard variable rate unless you switch | Usually fixed for the whole term | Often variable, and interest-only is possible |
| Term | Set by your lender | Up to 25 years, 27 in some cases | Often a revolving facility the bank keeps under review |
| Main costs | Product, valuation and legal fees, plus any charge for leaving your current deal | Guarantee of about 1–2% of the loan, arrangement fee, borrower insurance | Interest on the amount drawn and fees agreed with the bank |
| When you sell the French home | The loan stays on your UK home until you repay it | The notaire repays it from the sale price; early repayment charges are capped | Repaid from the proceeds or kept, under the facility's terms |
| Currency risk | The home's value in pounds moves with the euro, the debt does not | Debt and home move together; repayments cost more pounds if sterling falls | Depends on the loan currency, and a fall in markets can force repayment |
The fourth option, cash plus a French mortgage, follows the French column for the part you borrow. Early repayment charges on a French loan are capped by law at six months' interest on the amount repaid and 3% of the capital outstanding, and many offers waive them.
Sterling debt or euro debt
The exchange rate matters twice: once when you send the deposit, and for as long as the loan runs. The currency of the debt decides where that second risk sits.
- Sterling debt for a euro asset. You repay in pounds from income in pounds, so the monthly cost does not depend on the euro. The property, though, is worth euros. If the euro falls against the pound, the home is worth fewer pounds while the loan stays the same, and the reverse if it rises. When you sell, the euro proceeds have to be converted before they can repay the UK loan.
- Euro debt for a euro asset. The loan and the home are in the same currency, so a fall in the euro reduces both in sterling terms. On a sale, the notaire repays the loan from the euro price and only your share needs converting. The risk moves to the repayments: the euro amount is fixed, but its cost in pounds changes every month.
French banks protect themselves against that monthly risk by converting your income with a margin, or by asking for savings held with them. If you plan to let the property, rent paid in euros can cover part of a euro repayment. Some buyers split the borrowing between the two currencies, which spreads the risk without removing it.
Whichever loan you choose, the deposit is one large transfer on a fixed date. A forward contract can fix the rate when you sign the compromis de vente (the preliminary sale contract) for a transfer on completion day. Our currency partner arranges it.
Wealth tax and inheritance points
These are general points, not tax advice. French Tax Online can check them against your situation before you choose a loan.
- Wealth tax on property (impôt sur la fortune immobilière, or IFI). It applies when your French property is worth more than €1.3 million net, and as a UK resident only property in France counts. Debts relating to the taxable property, such as a loan used to buy it, can be deducted within limits: interest-only and family loans follow special rules, and on property worth more than €5 million, debts above 60% of its value are only half deductible. A French mortgage secured on the property is the clearest case. A loan secured on your UK home is less straightforward to deduct, so take advice before you count on it.
- Inheritance. A French loan comes with borrower insurance, and its death cover pays the lender the insured share of the capital outstanding, so that part of the loan is cleared rather than left to your heirs. With a UK loan, check what life cover, if any, would repay it. How each country taxes your estate, and which debts it allows, is a question for the notaire and a tax adviser. The UK buyers guide covers the choice of English law in a will.
When each option tends to fit
These are the situations in which each route is usually considered. They describe the options, not a recommendation for your case.
- UK remortgage or further advance: you have plenty of equity at home, your current fixed rate is ending so no early repayment charge applies, or the amount is small. Many French lenders set a minimum loan for non-residents, commonly €100,000–250,000, so modest sums are often easier to raise at home.
- French mortgage: you would rather leave your UK home and its rate untouched, want the debt in the same currency as the property, expect rental income in euros, or want a loan whose link to the property is plain for wealth tax.
- Private bank loan: you hold a substantial portfolio, the amount is large, and you accept that a fall in markets can force early repayment.
- Cash plus a French mortgage: your savings cover the deposit and purchase costs and you want to keep some money in reserve. Buying with cash now and borrowing later is possible but harder to arrange, and without a loan you lose the loan condition that protects your deposit.
What to do next
Work through the options in this order, before you make an offer.
- Ask your UK lender, or a UK mortgage adviser, what you could borrow against your home, at what rate, and what it would cost to leave your current deal.
- Find out what a French bank would lend on your file. The pre-qualification gives a broker what they need to tell you.
- Compare the monthly and total cost of each route, in pounds, over the years you expect to keep the property. The calculator covers the French side.
- If the deposit depends on a UK remortgage, get the UK offer before you sign the compromis, or tell the notaire so the contract reflects it.
- Have the tax points checked by an adviser.
The eligibility check takes five minutes. We introduce you to one English-speaking broker who places UK files with French banks and can set a French loan against the UK figures you bring.
Questions
Can I get a UK mortgage for a property in France?
Rarely on the French property itself, because UK high-street lenders generally lend only against UK homes. The usual UK route is to borrow against your UK home through a remortgage or further advance.
Is it cheaper to remortgage in the UK or borrow in France?
It depends on the rates on offer, the fees, any early repayment charge on your current UK deal and the exchange rate. Compare the total cost of each over the years you expect to keep the property.
Can I get a French mortgage in pounds?
French property loans are almost always in euros. Borrowing in pounds usually means a loan secured on your UK home.
Does a French mortgage reduce French wealth tax?
Debts taken out to buy French property can be deducted for the IFI within limits, and a French loan secured on the property is the clearest case. A loan secured on your UK home is less straightforward, so ask a tax adviser.
Can I combine a UK remortgage with a French mortgage?
Yes. Some buyers fund the deposit and purchase costs from UK equity and borrow the rest in France. The French bank counts the new UK repayment within its 35% debt-to-income ceiling.