subject: Working on a super yacht & need a French mortgage? [print this page] Working on a super yacht & need a French mortgage?
Example:
Name: Hans Ondek
Profession: Captain, SY Plain Sailing
Residency: Hans has an apartment in Hamburg but spends 10 months of the year working in International waters and Mediterranean ports.
Financial Profile: Sven is paid 72,000 a year as the Captain of a Sailing Yacht and pays a small rent on his apartment in Oslo and is looking to buy an investment property in Antibes for 250,000.
Sven is not a tax resident in Sweden and benefits from "sea-farer" status where he does not spend enough time in any one jurisdiction to pay tax on his income. The French lending bank will simply ask for a letter from his management company confirming his salary and position and lend him up to 85% of the purchase price of the property. Sven obtains a mortgage of 212,000 at a variable rate of 2.75% with fixed monthly payments of 980 over a 25 year term.
So, what does Sven need to get the ball rolling on his French mortgage application?
Documents Required:
A photocopy of each borrower's passport.
A photocopy of each borrower's birth certificate.
Photocopy of marriage certificate if applicable.
A letter from your captain or management company specifying your position, length of service, and monthly income. If you have been there less than 2 years please also provide a copy of your previous work contract .
Justification of your personal contribution (proof of down-payment) eg. bank account statement, building society statement showing you have the funds for down-payment,
Photocopies of the last 6 consecutive monthly bank statements showing income, loans, mortgages & regular outgoings .If you have more than one bank account please indicate clearly where your salary is deposited each month.
Details of any existing loans and mortgages (schedule of repayment),
A copy of your "Compromis de Vente" or Reservation Contract of the property you intend to buy.
Signed completed application form and health questionnaire.
At this rate, and with no penalty for early repayment at any time, Hans can tweak his mortgage to reduce the monthly payments and look forward to plain sailing for many years to come.
Anchors Aweigh.
Matt Frost of French Mortgage Xpress tells us what makes the difference between a French Mortgage application that shines and one that smells less than sweet.
1. Be Thorough. Make sure all the information requested in the application form is complete and backed up with the relevant documentationand don't forget to sign and date the application form!
2. Be Organised. List the documents you have provided on a separate sheet of paper or email. This impresses the underwriter that you know what you are doing and have not just emptied the contents of your document box for the underwriter to pick through the rubble of your private papers.
3. Be Clear. Most underwriting teams actually want to pass your dossier. Help them by high-lighting incoming salary and out-going mortgage payments on your bank statements. Explain any large one-off payments and point out where your down-payment is coming from if it is in more than one savings account or in different currencies.
4. Be One Step Ahead of the Game. If self-employed, ask your accountant to prepare a short note confirming your income for the last two years together with a provisional figure for the current year. Similarly, for employed and self-employed applicants, a financial c.v. showing your professional career and earnings history is a nice addition to your file.
5. Be IT Savvy: Almost all documentation can now be scanned and sent electronically to the lending banks, including passports and application forms. This can speed up the procedure and cut down on waste paper.
Of course, each application is different; but by using the above tips you can help push your application to the top of the queue and significantly improve your chances of a successful French Mortgage application.
