We currently have an interest only mortgage fixed until May 2009 on our home in the UK.   We are currently renovating a house in France and want to take out a french mortgage.    anyone out there who could advise us on this.   We are getting lots of offers from UK mortgage companies who will obviously make commission on the deal when it is passed to a french mortgage company but at the end of the day we want to take this mortgage out on the french home leaving us mortgage free in the UK.   Anyone help with advice.

“We currently have an interest-only mortgage fixed until May 2009 on our home in the UK. We are currently renovating a house in France and want to take out a French mortgage. We are getting lots of offers from UK mortgage companies who will obviously make commission on the deal when it is passed to a French mortgage company, but we would like to avoid costs where possible as taking out this mortgage could leave us mortgage-free in the UK. Where should we start?”

The French property market has proved a lot more stable than that of the UK in the recent downturn, having avoided any frantic over-heating in recent years. This, plus the increasing cost and poor availability of mortgage finance in the UK, may lead more potential ex-pats to check out Euro mortgages over the next few years.

You are unlikely to get round the need to use a broker. Any transaction will be complicated and you will leave yourself vulnerable if you try to manage without a professional. However, you will need to do a bit of upfront research anyway. Miranda John, manager of broker Savills Private Finance International, says: “Research is key to finding a competitive overseas mortgage. This is a long-term commitment so it is important to ensure you have the best advice and options open to you.

“UK lenders can’t usually take a charge on French property so you need to see what French banks can offer. However, dealing directly with these can be frustrating due to language difficulties. Also, not all of the competitive products via smaller niche lenders are easy to locate.

“There are specialist brokers for the overseas market but look for one with a proven track record as increasing numbers of UK brokers are diversifying into this market. You are unlikely to want to be a guinea pig. There can be hidden charges on an acquisition/renovation loan and significant variation in interest-only/deferred options. An experienced broker should provide a good solution to meet your mortgage needs. Brokers also have exclusive deals and preferential rates, which may offer long-term savings.”

Cherry Reynard, Independent on Sunday

thanks cherry, we are now dealing with a UK Broker who has experience of the European market but we are also contacting other brokers in France and we will be comparing what they have to offer as we don't want to put all our eggs into one basket.   The French mortgages companies also speak English so that may make it a little easier and as we are being very upfront with all our contacts by informing them that we are looking for competitive quotes then this will obviously give us a choice.    We hear your advice, which is brilliant, as our transaction to buy the property in the first place was a nightmare with different departments, language barrier and a reluctance for the french to commit to timescales.   It was only when we threatened to pull out of the deal that the owner got on to the Notarie and bingo we had a date for signing, which they had not committed to earlier on.   (Blackmail still works!!!!!)

 Again thanks for your help and advice