Consolidating debts against your home in France follows a precise legal framework, and it pays to know it before you sign. The share of property loans in the package decides which set of rules applies; a mortgage (hypothèque) can only be created before a notary and must be registered with the land registry; and whoever arranges the deal must be registered as an IOBSP, the French status for banking intermediaries. With those three points in mind, you can compare offers and spot a badly built proposal.
This page is written for owners aged 50 to 64 who are still working and are thinking of merging a home loan with consumer credit, using their main residence as security. It focuses on what is specific to France: the Consumer Code, the Monetary and Financial Code, the real cost of the security and the obligations of the broker. English-speaking owners often assume the process resembles a UK remortgage; in practice the steps and the protections are quite different.
Which legal regime governs your consolidation?
Articles L.314-10 and following of the French Consumer Code regulate debt consolidation. When property loans make up at least 60 % of the sums being bought out, the deal is treated as a property loan. Below that threshold it is consumer credit, even if a mortgage is taken. This classification changes the waiting periods, the usury ceiling and the term you can obtain.
| Feature | Property regime (60 % or more) | Consumer regime (under 60 %) |
|---|---|---|
| Protective period | Offer held for 30 days, acceptance no earlier than day 11 | 14-day withdrawal right after signing |
| Usury ceiling from 1 October 2026 | 4.09 % under 10 years, 4.68 % for 10 to 20 years, 5.40 % beyond | 8.56 % above 6,000 € |
| Penalty on the old home loan | At most six months' interest, capped at 3 % of capital owed | Same caps, set by the original contract |
| Borrower insurance | Lemoine law: switch insurer at any time | Lemoine law does not apply: terms of the policy signed |
The conventional mortgage: formalities and real costs
The mortgage is created by a deed signed before a notary, then entered at the land registry office (service de la publicité foncière) where the property is located. It triggers land registration tax of 0.715 % of the amount secured, a property security contribution of 0.10 %, the notary's regulated fees and out-of-pocket expenses. Brokers put the whole package at around 1.5 % to 2 % of the amount financed.
Example: Helen, 59, homeowner in Lyon
Helen, a British-born senior nurse, earns 3,600 € net a month. She still owes 95,000 € on a home loan taken in 2023 at 3.90 % (720 € a month) and 45,000 € on three consumer loans (1,050 € a month). Her flat is valued at 240,000 €. Her 1,770 € of monthly repayments take 49 % of her salary, and her estimated pension is 2,650 €.
The property share is 68 %, so the property regime applies. Financing 150,000 € over twenty years at 3.80 % gives about 893 € a month before insurance, which is 25 % of her salary and 34 % of her expected pension. On 150,000 € secured, the land registration tax comes to 1,072.50 € and the security contribution to 150 €, before the notary's own fees.
How long does the registration last?
The mortgage remains effective until one year after the final instalment and then lapses automatically. If you sell or repay earlier, a notarial release (mainlevée) is needed, and it is not free. Since the reform of French security law that took effect on 1 January 2022, the rechargeable mortgage is again available to individuals, so the same security can be reused for a later loan.
IOBSP status: what the law requires of your broker
Banking and payment-services intermediaries fall under articles L.519-1 and following of the Monetary and Financial Code. They must be registered with ORIAS, the official register of intermediaries, in a specific category: broker, agent of a lender or agent of an intermediary. The registration number must appear on their documents and can be checked online free of charge.
How brokers are paid and supervised
Article L.519-6 of the Monetary and Financial Code forbids any payment before the loan funds are actually released. An intermediary asking for a deposit for "processing" is breaking the law. Since 1 April 2022, brokers and their agents must also belong to a professional association approved by the ACPR, the French banking supervisor, which checks their competence and handles complaints.
Six checks before you sign with a broker
- Note the ORIAS number shown on the website or mandate and verify it, together with the category, on the official register.
- Ask which approved professional association the broker belongs to.
- Insist on a written search mandate (mandat de recherche de capitaux) stating the amount sought and the fee conditions.
- Request the list of lenders actually approached.
- Refuse to pay anything before the lender has released the funds.
- Compare the result with a direct offer from a specialist consolidation lender.
What broker fees are normal?
Fees are freely set and depend on how complex the file is. Some comparison sites mention amounts of several percent of the capital for a mortgage-backed consolidation. They must be stated in the mandate, included in the APR when they are a condition of the loan, and are never owed if the application fails.
Mistakes and refusal reasons specific to France
- Letting the property share cross 60 % without checking that the APR, insurance and fees included, stays under the mortgage-scale usury ceiling.
- Forgetting the release of the old lender's security, whose cost comes on top.
- Signing with an intermediary not registered with ORIAS, or registered in the wrong category.
- Accepting the offer before the reflection period has run, which makes the contract open to challenge.
- Overlooking that a property held in indivision (joint ownership, often after an inheritance) or split between bare ownership and usufruct needs every holder's consent.
A guarantee instead of a mortgage?
Where the property share is moderate, a mutual guarantee company such as Crédit Logement can replace the mortgage. Part of its fee is refunded at the end of the loan, and no release costs arise if you sell early. The lender is free to accept or refuse, and this option tends to be kept for very solid applications.
Alternatives that exist under French law
The prêt viager hypothécaire, France's lifetime mortgage, lets owners from 60 receive a lump sum with no monthly payments, repaid on death or sale. The vente à réméré, a sale with a buy-back option, is far riskier and should only be considered as a last resort with independent advice. If your debts cannot be repaid at all, the Banque de France over-indebtedness procedure remains open to homeowners.
Non-residents and foreign-currency income
If you own in France but live or earn abroad, the same French rules apply to the loan, but fewer lenders take such files. Expect requests for translated payslips and tax returns, and a more conservative view of income paid in sterling or dollars.
Frequently asked questions
Is the 60 % threshold calculated on capital or on payments? On amounts: the property loans are compared with the total sum consolidated. Ask the lender how it calculated the ratio, because adding a cash top-up can tip it below the threshold.
How much does a mortgage cost on 100,000 €? Allow 715 € of land registration tax and 100 € of security contribution, plus the notary's fees and expenses. The ANIL calculator gives a personalised estimate.
How do I check that a broker is authorised? Enter the name or number on the ORIAS register: the record shows the IOBSP category, the registration date and any insurance-intermediary status.
Can I change insurer after a property consolidation? Yes. The Lemoine law lets you cancel the insurance on a property loan at any time, provided the new policy offers equivalent cover.
Organisations and offers to contact
- Creatis (Cofidis group) : Mortgage-backed consolidation specialist lending up to 400,000 € over 10 to 25 years, notary costs financed, last payment before age 85.
- Solutis : Consolidation broker explaining loan-to-value of 70 to 80 %, mortgage headroom, notarial costs and caps on early-repayment penalties.