Finance Guide
Guide to French Mortgages for Non-Residents
Navigating Financing in the French Alps and Beyond
French mortgage rates, the 33% affordability rule, borrowing capacity, the 4-month application timeline, documentation requirements and acquisition costs — everything non-resident buyers need to understand before applying.
Why Finance Your French Alpine Purchase?
Buying property in France is exciting, but the mortgage system can feel unfamiliar. With the right guidance, the strategic benefits become clear — and for many international buyers, financing makes excellent financial sense even when they could buy outright.
Keep your existing savings and investments working for you rather than liquidating them for a lump-sum purchase.
Mortgage interest and property amortisation can be used to offset rental income under the LMNP regime.
Fix your interest rate for up to 20–25 years — a level of stability the UK market rarely offers.
Current Market Conditions (2025)
Rates rose post-Covid but are now stabilising. The key advantage of French mortgages is that they are fixed for the full term. A 20-year lock provides predictability that variable-rate markets simply cannot match.
- Average fixed rates (20 years) — stabilising as of early 2025
- Location advantage — Paris, the Alps, and the Riviera often secure the most attractive banking products
- Post-Brexit note — lending criteria has tightened for UK buyers. Paperwork and scrutiny are heavier, but approval is entirely achievable with a specialist broker
The Golden Formula: The 33% Rule
French banks are risk-averse by design. Your total debt repayments cannot exceed 33% of your gross monthly income. Understanding this rule before you apply will save you significant time.
Two important caveats:
Rental income from the new property is not counted in the affordability calculation.
Only 70% of existing rental income is recognised when calculating your gross income.
Borrowing Capacity & Monthly Cost Scenarios
As a rule of thumb, French banks will consider the following multiples:
- Repayment mortgage — up to ~5× income (less existing mortgage balances)
- Interest-only mortgage — up to ~10× income (requirement: assets must equal the loan amount)
Monthly Cost Comparison (Based on €100,000 Borrowed)
- 20-year repayment — approximately €600/month
- 25-year repayment — approximately €530/month
- Interest-only — approximately €333/month
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