French Mortgage - can someone help?

[Dorasmum]

Wondered if there was someone here who could help with a mortgage question? (Lummox - if you are about - hello )hope you remember me!)

We are in a bit of a dubious position. We have been trying to move over to Northern France for ages now - finally, house just about to exchange in UK, house we have wanted in France for yonks is available, offer accepted, notaire drawing up compris.
Hubbie has met with a French bank re mortgage and we are waiting to hear.

In the meantime we have also been looking at mortages through a company in the UK - we now have a decision in principle (with credit foncair) excuse spelling. However, one of the clauses of the decision is that we have no mortgage in the UK. So, we have to complete on this house and move 'somewhere' for about 4 weeks before we can get a mortgage offer and complete.

Is this correct? It seems very risky - what if the 'decision in principle' doesn't turn into a mortgage offer? We cannot believe that this is becoming so difficult?

Hope I have made this clear!?? Any help/advice would be MASSIVELY appreciated. Cannot believe we cannot complete on both consecutively?

Nicky

have you spoken to abbey national, they would surely not put this restriction in place? or are they more expensive than a french bank?

you may have to put your foot down and insist on simultaneous completion. you are paying after all.

Hi, thanks for response.

We were with the Abbey at one point with this house and H contacted them and they said they didn't lend in France????? He said about them being part of Santander to no effect.

Do you think we can insist? Common sense tells me that a letter from our UK solicitor dealing with sale should pacify them but don't know!.

I tell you, if I ever get that house I am swallowing the keys!
Nicky

they lent in france about 2 years ago! but it was a separate company. you could find it on the internet, maybe?

I would try insisting, and make it clear that the bridging period is not on for you.

Thanks for that - you have reinforced what we thought.

We are extremely nervous with this UK firm we have used - internet based with fee to pay. We are watching it like hawks. Just wanted to know if this was a normal clause. Hubbie said tonight that surely it's not this difficult to move to France!

Thanks for your thoughts.

Nicky )

here's the ex abbey nat website:
www.ucb-frenchmortgage.com/pages2/personalised-quotation.php

not these by any chance??

It is basically just a normal chain situation, isnt it?
Sounds stressful though!

Hi there Dorasmum - hope that all is going well with you (other than having to eat our own intestine through frustration in order to get a French mortgage - we know the feeling). It does sound a little odd to me, but I don't really know much about it.

Abbey National in France is now part of BNP. Im not sure if they still do stuff in English.

We are with Credit Agricole Britline which is all done in English. We're not fantastically happy with the rate, but it is an ordinary French bank and all totally above board. If you have already got all your docuents together (and signed your grandparents in triplicate, etc.) then you might be able to get an answer from them pretty quickly. Either way they speak English, so you could give them a ring.

There is another poster on here (Othersideofthechannel) who I met through Mumsnet and also lives in the Pas de Calais. I will point her in the direction of this as I think she will know the answer.

Do you stil have my email? Which area did you decided on?

Hi Lummox - good to hear from you. Did I read that you are expecting again? Hope the boys are well )
We have been quoted a rate of 5.1% - documents arrived in post this morning. I am going to call them and try to insist about the redemption of the UK mortgage - you would think that surely a letter from our UK solicitor confirming exchange etc would be enough.
We are still buying the same house in Hezacques (1 mile outside of Fruges) that we were looking at last time I mailed you.

Did you manage to do a consecutive completion or did you rent?

Nicky )

Hello

Lummox just mailed me about this thread.

I don't know much about mortages in France but I work for a man who does.

Abbey National sold to UCB. UCB has a huge 'UK buyers' department with many of the ex-Abbey staff who have been working in that field for years.

My boss used to head the UK buyers dept at the Abbey National in Lille. He might be able to advise on your clause. Or if not, know someone else who can.

I will ask him on Monday.

Not expecting as far as I know! Boys are good, thanks. Hope your girls are too.

We originally bought as a second home, so had a mortgage in the UK and a mortgage here. No problem at all - there was a space on the form for it and it was part of the general financial picture.

When are you planning to move (all being well with the mortgage)?

Hello

Othersideofthechannel - thanks for your response. If you wouldn't mind asking I would appreciate it. Since I posted this we appear to have had a decision from a bank in Fruge who have said yes and we are going in on Friday to open accounts etc. It would be good to have the advice though, just as a security blanket.

Lummox - thanks for contacting 'osotc' for me. I though I read on a different thread something about you expecting!! Apologies . Thought that was a small age gap!! Girls superb thanks. We are tentatively setting a move date of 15 February - vendors in France are being superbly accommodating but that date is a bit of a moving target. Very very excited though. Yes, have lost your details. Was glad to see you were still on here when we came unstuck with that clause

Again, thanks both
Nicky

I've just spoken to my boss Nicky.

He says that usually what happens when you sell a house in to buy another the bank lending the money for the second house set up a 'pret relais' which is a temporary loan, interest only to cover the period when you are the owners of two houses. There are two common situations when the bank does not want to do this:
a) when the total amount due on the two loans exceeds the amount you are allowed to be in debt under French finance law (a percentage of your income)
b) when the second house costs a lot less than the first house so you will be paying back the 'pret relais' within a very short period in which case it is not in the banks interest to set up this bridging loan (presumably because they don't make enough money out of it).

Also, he said that when people are buying a main residence (as opposed to a second home)in France, it can be more difficult because the bank wonders what you are going to do for income after the move. (Of course it is possible to live in Northern France and continue a job in the UK but usually when you change countries it implies a change in job.)

He can give you more specific advice if you would like but would need to know all the figures involved (where I work is primarily insurance but we do mortgages and investment in France as well) but it sounds to me like you are a bit further along the process than that.

And if you want to get back in touch my email is the name of this website with the letters 'ter' at the end @ gmail [dot] com.

Have you spoken to HSBC? They have advertised like crazy in Paris in the past year about their global coverage, how they can manage their customer's affairs in several countries etc.

Thanks OSOTC - that is really really helpful. I have printed for other half to read - I'll come back to you. Again, thanks a million

Lummox - thanks for the address, i'll keep in touch x

Glad it was useful. Hope everything works out.

Maybe we can organise a northern France meet up in the Spring with Lummox. I think there are some mnetters in Lille too.