Arranging Bridging Finance in France

Bridging loans aren't as common as mortgages, so you might not be familiar with them. You should always consider the advantages and potential pitfalls of this kind of loan before you use it and ensure you're comfortable with how lenders will set up the loan and what it will help you achieve. We can walk you through all these details and will help you understand if bridging finance is the right option for you – we will never suggest you use a bridging loan if we don't believe it's the best type of finance for you or if doing so would present undue risk. 

You can use bridging finance in France in lots of different ways, which is one of the key advantages of this type of loan. You'll most frequently use bridging finance to access the capital you need to buy a house quickly in France, given we can arrange these types of deals in just a couple of weeks or less. You might want to take this path because a French mortgage isn't the right option for you or because a mortgage will take too long to arrange in the context of how quickly you want to complete the property transaction. Many borrowers use a bridging loan to buy property fast and then exit by refinancing via a mortgage, giving them time to arrange the long-term financing package (usually a mortgage) they're most comfortable with. This is a perfect example of how you can use bridging finance to create an ideal outcome for you.  

You can also use bridging finance to unlock equity from unencumbered real estate in France. You can use the capital provided by equity release to consolidate debt or to create the liquidity to invest, purchase additional real estate or assets and so on.

French bridging loans are popular with French residents, expats and non-resident property owners. Provided you meet lenders' criteria, this type of finance is available to anyone that owns French property – you do not have to be a French national or live in France to use this type of finance. It's also possible to access this type of loan if you don't have a French or EU credit footprint, making it a viable and valuable option if you live in Asia, the Middle East or the Americas but haven't purchased Europe before. 

You can use bridging finance in France if it is too complex to secure a mortgage in France, if you want to compete on a French property transaction quickly or if you can't get a mortgage before you stand to lose a deposit because of how long the process takes. You can draw down a French bridging loan in 1-2 weeks, which makes them ideal if you need to move forward with a property purchase quickly or if you do not want the stress of securing a mortgage in the short term. 

French bridging loans can also be used to unlock equity tied up in real estate you own in France. Here, a lender will use your property as security, and it's possible to access significant capital via equity release. 

• Loan amount: €100,000 to €10,000,000 plus
• Property: Commercial and residential, including luxury residences and other second properties.
• Anywhere in France, with a focus on Paris, the Alps and the South of France  
• Time: 2 to 36 months
• Up to 75% LTV
• Borrowers: Individuals, businesses, special purpose vehicles, trusts, etc.
• Uses: debt consolidation, home improvements, equity release, and property purchases.

We arrange bridging loans secured against French property of any amount, from €100,000 and up to large loans of several million euros. We can secure bridging finance against commercial and residential property anywhere in France, with a focus on Paris, the Alps and the Cote d'Azur region. 

French bridging loan lenders often don't offer lending products and fixed LTVs the same way mortgage providers do. Instead, they will usually LTV is usually based on your property, how you will use the loan, how much you want to borrow and the potential risk of the transaction. Lenders will usually offer a maximum of about 75% LTV for a French bridging loan, but this can vary from lender to lender. 

Rates will also depend on your lender. French bridging loans typically start at about 1% PCM, but this may be influenced by your plans, financial situation, and the property the loan is secured against. When we seek to arrange bridging finance for you, we will negotiate the rate with lenders, and we will always be working to maximise what you can borrow and minimise what you will pay, while getting you the best terms. 

As well as interest, you'll need to consider other fees that form part of French bridging loan deals. These will include property valuations, legal fees, arrangement fees, tax advice and additional fees set by the lender to cover administration costs. When you contact us to arrange a loan for you, we will explain the general costs of a bridging loan and the fees set by each lender, so you understand precisely how much it will cost you to borrow.

A bridging loan allows you to access money considerably more quickly than via a mortgage or other types of property finance, and usually, you will be able to draw down funds in just 1-2 weeks.