Borrowing Across Borders After 50: A Guide for Expats and Non-Residents

If you are over 50 and live outside France, there are two ways to borrow for a French project. A French bank can lend to you as a non-resident, almost always for a mortgage secured on property in France, or a bank in your country of residence can treat you as a local customer. Cross-border consumer credit is rare: lenders mostly fund people who live in their own market.

The reverse situation is just as common among our readers. A Briton, an American or an Irish citizen settled in France may want to buy a flat in Spain or Portugal, or a part-time resident may need a loan in France. Whatever the direction, three questions decide the outcome: where you are tax resident, which currency your income is paid in, and how old you will be at the final repayment, a threshold each country sets differently.

Getting a French loan while living abroad

French banks lend to non-residents, but cautiously. According to the broker Pretto, they expect a deposit of around 20% to 30% of the price, and the rate averages roughly 0.4 of a point above what a resident would pay. The HCSF rule, set by France's financial stability council, caps total debt repayments at 35% of income and applies to these files too.

Where you live and what currency you earn in

The smoothest applications come from residents of the eurozone, the United Kingdom, Switzerland or Singapore. US residents are examined at greater length because of the reporting duties FATCA imposes on banks, and some French lenders simply decline American clients. People living in a country on the FATF lists of high-risk jurisdictions are usually refused. Income paid in pounds, dollars or another foreign currency is also discounted to absorb exchange-rate risk.

Worked example: an expat engineer of 58

David, 58, works for an engineering firm in Dublin, earns €6,000 net a month and plans to retire to Brittany. He buys a €180,000 house with a €45,000 deposit. A €135,000 loan over 15 years at 3.6% costs about €972 a month, 16% of his income. He will be 73 at the last instalment, which the bank accepts with suitable insurance. Had he been paid in sterling, the same file would have been run on a reduced income figure.

Conditions for non-residents compared

These figures are those the institutions publish and assume stable income and a complete file. In Portugal, financing a main residence for someone who is Portuguese tax resident follows different rules.

Buying in the country where you plan to retire

Many retirees based in France look to Spain, Portugal, Morocco or Greece for a second or final home. They can approach a local bank before they move. Spanish and Portuguese banks have built dedicated units for foreign buyers, with multilingual advisers and remote procedures, so the process can start from a French kitchen table.

Worked example: a retired teacher buying in Spain

Annie, 64, is a retired British teacher who has lived near Toulouse for twenty years. Her UK and French pensions together bring in €3,200 a month. She has her eye on a €150,000 flat in Alicante. CaixaBank lends 70%, or €105,000; she puts in €45,000 and budgets 12% to 15% for fees and taxes. By way of illustration, at 3.5% over 15 years the monthly payment would be about €751, 23% of her pensions.

Insurance and age ceilings outside France

France's Lemoine law, which removed the medical questionnaire for smaller home loans, only covers contracts governed by French law. For a Spanish or Portuguese mortgage, death cover follows local practice: it is not always compulsory, but banks often offer it in return for a lower margin. The maximum age at the end of the loan, 75 at novobanco for example, directly limits the term you can get.

Pensions paid into another country

French pension funds pay retirees in most countries, subject to an annual life certificate, and the UK's Pension Service pays abroad too. A local bank will count that income more readily if it lands in an account with them. Have your pension paid into the local account several months before applying: the payment history weighs as much as the amount.

Putting an international file together

A cross-border application needs more documents and more time. Prepare it early so that a missing translation does not hold up signing at the notary's office.

1. Pin down three countries: where the property is, where your income comes from and where you are tax resident.
2. Gather tax returns from both countries, pension statements and twelve months of bank statements.
3. Have documents translated if the bank asks; English is sometimes accepted as it is.
4. Consult a broker specialising in non-residents and a local bank, so you can compare both routes.
5. Obtain the tax number of the country of purchase, such as the NIE in Spain or the NIF in Portugal.
6. Sign the offer once the local cooling-off period has run, then complete before the notary.

Why cross-border files are refused

Most refusals come down to a deposit that is too small, a term running past the age limit or income in a volatile currency. Another frequent error is asking a bank in a country where you do not live for a consumer loan: the answer is nearly always no. For everyday borrowing, go to a bank where you are resident.

Foreign nationals living in France

A non-EU national resident in France must show a valid residence permit. Since Brexit this includes British citizens, who hold a Withdrawal Agreement card or another titre de séjour. Some banks want the permit to cover a good part of the loan term or ask for a ten-year resident card. An EU citizen is treated like a French resident. In every case the HCSF rules and the Consumer Code apply.

International loan scams

Private loan offers from abroad that require a fee before the funds are released are almost always fraudulent. Check that any lender operating in France appears on the REGAFI register kept by the ACPR, the French banking supervisor, and that any broker is registered with ORIAS.

Other routes when a standard loan falls through

If conventional credit does not work out, other levers can fund a project outside France.

• Pledging a French assurance-vie policy to obtain a loan from the same insurer's bank.
• Taking a secured loan on a property you already own in France to fund a purchase elsewhere.
• Selling a French property en viager (for a lump sum plus life annuity) or selling the bare ownership to raise a deposit.
• Borrowing jointly with a resident son or daughter, whose income and age stretch the possible term.

Frequently asked questions

Can a French bank turn me down because I live abroad? Yes, lending is at the bank's discretion. It may not, however, refuse an IBAN from another SEPA country for a direct debit.

Does the new EU consumer credit directive change anything? Directive 2023/2225 applies from 20 November 2026. It strengthens creditworthiness checks and disclosure but does not force banks to lend to non-residents.

Do I need French borrower insurance for a Spanish mortgage? No, insurance follows the local contract. Compare it all the same, because its price after 65 varies widely.

Can I borrow in France on a UK or US pension? Yes, if you live in France and the pension is regular. Expect the bank to apply a haircut if it is paid in sterling or dollars.

What is the age limit for a mortgage abroad? It depends on the lender: 75 at the end of the loan at novobanco, for example. Ask each bank before signing a preliminary sale contract.