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6. Home Equity Release

Equity Withdrawal
Lifetime Mortgages

6.1. Equity Withdrawal French Mortgages

If you have no existing mortgage on your property there is no reason, in principle, why you cannot obtain a normal repayment mortgage on the property from a lender to fund home improvements, the purchase of a car, or other expenditure.

Naturally, you will need to meet the usual criteria of the French lenders, most notably that the total level of debt repayments cannot exceed 33% of your total income.

You will find that if you are seeking funds for home improvement, a mortgage is likely to be cheaper than if you are seeking the funds for other types of expenditure, e.g. car purchase.

Where you already have an existing French mortgage on your property, since 2014 it has not possible to obtain a further mortgage. The ban has been imposed to control the level of debt held by households. This type of mortgage is called a prêt hypothécaire rechargeable.

6.2. Lifetime Mortgages in France

These mortgages are schemes in which you release some of the equity value in your home in return for a regular income or capital sum, with the mortgage repaid following your death.

In the UK, they are referred to as ‘lifetime mortgages’.

In France they are called a prêt viager hypothécaire.

This type of mortgage is not currently on offer in France for the purchase of property. Nevertheless, it is available for energy conservation works on the principal residence. You can find more details at Interest Free Loans for Energy Conservation

Next: French Mortgage Eligibility Criteria

Back: Hybrid Mortgage - Prêt Multipalier

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