News

  • In order to better respond to your demand of benefiting from optimum security at the best price and conditions, BNP PARIBAS International Buyers has created a new product responding to all these needs: the CAPPED rate.
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  • BNP Paribas International Buyers extends its new “2- or 5-year fixed rate” option to its refinancing solutions!
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 Frequently Asked Questions 


1. What are the main differences between a UK mortgage and a French one?

Rates – At present variable rates in France (and throughout the Euro zone) are about 2% cheaper than sterling rates and have been so for the last few years.
 
Mortgage types – Interest Only is now quite common in the UK but is rare in France, where Repayment Mortgages are predominant.
 
Duration – Whilst the average duration in France is around 15 years some lenders now offer up to 25 years. However this is still far from the maximum mortgage term in the UK.
 
Consumer protection – Stronger in France, giving rise to more formalism e.g. use of postal system for sending and returning offers and compulsory 10 day consideration period. It also makes lenders more demanding for their risk assessment, seeking more information and ruling out for example the possibility of self assessment mortgages, (see next question). However the positive side of this consumer protection allows buyers to recover their deposit if their mortgage application is refused.
 
Valuations or surveys – French lenders do not generally require full structural surveys as in the UK, although some lenders in France do arrange for valuations to be carried out for their own internal use.
 
That said – what do they have in common? At the end of the day we find the same principle of taking a legal charge on the property financed, and the fact that your home is at risk if you do not keep up repayments.
















YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

 

BNP Paribas International Buyers is a business line of BNP Paribas Personal Finance.
BNP Paribas Personal Finance - Credit institution – Société Anonyme incorporated under French law with a share capital of 453 225 976 euros - 542 097 902 RCS Paris -
Head office: 1 bd Haussmann, 75009 PARIS Insurance Intermediary (N° ORIAS : 07 023 128) Insurer(s): Cardif Assurances