Is it better to remortgage on an existing property or obtain a new mortgage?
Remortgaging is not very common with French lenders, although some are starting to offer mortgages on this basis, allowing the borrower to take advantage of rising values and equity and it can also be a quicker process. In general, if you think that you will need additional funds later, it is better to raise these at the time of purchase, when it may be easier to obtain the finance. For example, if a buyer was to raise money for home improvements, most banks would insist on paying the builder directly on invoice, rather than allowing the borrower to handle the money. Even if it proves to be possible, the extra funds are likely to be more expensive than those raised for purchase. With remortgaging you may have to pay your existing lender a redemption fee of up to 3% of the outstanding loan amount and the repayment period may be longer. If remortgaging a French property care needs to be taken to ensure that there are no excessive redemption penalties and the applicant could have an appli
