VPS-Finance recommends obtaining the mortage through a bank in the country of purchase for two very important reasons:
1. VPS-Finance is in daily communication with the largest financial institutions and can therefore help our clients receive the financing they require
2. It is common to take out a mortgage on a property in euros rather than sterling, essentially because it is cheaper to do so, since euro mortgages are tied to the rate set by the European Central Bank (ECB), which is currently lower than the Bank of England base rate. This option is particularly attractive for owners who receive income in euros, for example rental income, as well as making the mortgage repayments in euros- effectively negating the need to transfer sterling to a French bank account (at a cost) to cover the mortgage repayments.
As a non-resident buying property, if not intending to pay cash, our best advice would be to request a mortgage through the VPS-Finance bank partners:
1. VPS-Finance represents our client throughout the process, dealing with the financial institutions on our client’s behalf. VPS-Finance is in a position to obtain competitive terms and rates given our daily dealings and close relationships with the various banks and financial institutions
2. Interest rates in France are generally considerably more attractive than other countries.
VPS-Finance offer in-house, bi-lingual mortgage brokers who arrange the most appropriate mortgages for our client’s individual needs. VPS-Finance are proud to offer assistance through our wide range of affiliated real estate developers, management companies, financial institutions, Notaires, solicitors, accountants, and French Consulates around the world.
Through this affiliation, and because we have an established excellent rapport with these companies, we are able to pass on competitive rates and a wide variety of real- estate and financial programs to our customers.
A French mortgage, for example, will save costs but more importantly allow our clients to benefit from the very attractive mortgages available in France.
Please contact VPS-Finance for further information, including advice relating to:
• Negotiated financing resulting in high leverage and better investment return
• Tax and accounting services
• Bank-related matters and opening an overseas account
• Company set-up in country of purchase.
