Some buyers in France pay cash, often from the sale of a UK property. Others prefer to borrow in euros against the French home. Both are reasonable, but borrowing in France works differently from borrowing in the UK, and it is worth understanding the framework before you start looking.
The rules apply to you too
Since 2022, French lenders have been bound by a decision of the Haut Conseil de stabilité financière, the country's financial stability authority. In summary, a borrower's total debt repayments, including insurance, should not exceed 35% of income, and the loan term should not exceed 25 years, with up to two further years of deferral where possession is delayed, for example on a new build.
Lenders may depart from those limits for up to 20% of their new mortgage lending each quarter, but at least 70% of that margin is reserved for buyers of a main residence, with a share set aside for first-time buyers. The authority's own published answers confirm that the rules apply to loans made to borrowers who live outside France, when the property is in France and the lender is supervised by the French banking regulator. In practice, a British buyer of a second home should expect to meet the standard limits.
What rates look like
According to the Crédit Logement/CSA Observatory, the average French mortgage rate across all durations was 3.24% in the second quarter of 2026, with June averages of 3.12% over 15 years, 3.22% over 20 years and 3.30% over 25 years. Those are averages for the French market as a whole; each lender sets its own terms for borrowers who live and earn outside France.
France also caps the total cost of credit through the usury rate, which covers interest, insurance and fees together. From 1 October 2026 the Banque de France ceiling is 5.40% for fixed-rate loans of 20 years or more, 4.68% for 10 to 20 years and 4.09% for under 10 years. An offer above the ceiling cannot be made, which matters most for older borrowers whose insurance costs more.
Insurance and guarantees
Lenders can require borrower insurance, but they cannot force you to take theirs; you are free to choose your own insurer. Since 1 June 2022, no health questionnaire is needed where the insured amount is €200,000 or less per person and the loan will be repaid before your 60th birthday. Lenders will also take security, usually a mortgage over the property or a guarantee from a specialist guarantor.
The offer and the timetable
The loan offer comes with a standardised European information sheet setting out the rate, the annual percentage rate and the repayment schedule. The lender must keep the offer open for at least 30 days, and you cannot accept it before a ten-day reflection period has passed: acceptance is possible from the 11th day after receipt.
Those dates have to fit inside the purchase. The compromis will normally include a condition that you obtain a loan, with a minimum period of one month, so the application should be ready to submit as soon as the contract is signed. Allow for the time it takes to assemble UK payslips, tax returns and bank statements, and for any translation the lender asks for.
Borrowing in euros, earning in sterling
A French mortgage is a euro loan. If your income is in pounds, your repayments in sterling will move with the exchange rate for the life of the loan, and the exchange rate also affects how your income measures against the 35% limit. Some buyers prefer to raise funds in the UK instead, for example against a London property. Which route suits you depends on your circumstances and is a question for a regulated mortgage adviser, not for us; this article is general information, not financial advice.
Dolce Vita sells and lets property across the UK from Berkeley Square House in Mayfair, and helps clients buy abroad through partner agencies in France and elsewhere. If you are looking in France, contact us and we will make the introduction. If a UK sale or letting will fund the purchase, Request a valuation; we acknowledge the same working day and return a written valuation within 24 to 48 hours.
Hanane Dawson, Founder
Sources: Haut Conseil de stabilité financière, Mesure relative à l'octroi de crédits immobiliers (decision D-HCSF-2021-7 as amended in 2023) and FAQ on the mortgage lending decisions (economie.gouv.fr). Observatoire Crédit Logement/CSA, analysis of the second quarter of 2026 (16 July 2026). Banque de France usury rates from 1 October 2026 (reported by MoneyVox, September 2026). Service-Public.fr, I want to get a mortgage. Ministère de l'Économie, Assurance emprunteur : questionnaire de santé (14 November 2025). Service-Public.fr, Promesse de vente d'un logement ancien (verified 10 April 2026).