top cx logo
cx logo
Explorearrow down
search icon

Can I renegotiate a French 'prêt viager' rate?

Can you renegotiate equity release loan rates if levels drop? J.B.

Unlike an ordinary bank loan for buying a home, an equity release loan (prêt viager hypothécaire in French) cannot be renegotiated once you have taken it out, said a spokeswoman for Crédit Foncier, the only bank which has offered such loans in France in recent years.

These loans are aimed at older people and are reimbursable only after the person dies, although a recent change has an option to periodically pay off the interest.

She added that Crédit Foncier had recently stopped offering the loans to new clients.

The bank is currently in the process of being dismantled and its responsibilities transferred to other banks within the Banque Populaire Caisse d’Epargne group.

Crédit Foncier was the only bank that purely specialised in loans. It is planned that nothing should change for clients who already have the loans and they will continue to be catered for.

Crédit Foncier previously told Connexion that it was expected that the prêt viager would be offered to new clients via other banks in the network, but the spokeswoman said that is not currently the case and they cannot yet confirm future plans.

Connexion notes that the French government information on these loans has only very recently been updated (see tinyurl.com/y3745gqk).

The official notaires.fr site still has a page on them (tinyurl.com/y6yo2fyw) and some notaires have acted as intermediaries to organise them.

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Healthcare in France*
Featured Help Guide
- Understand the French healthcare system, how you access it and how you are reimbursed - Useful if you are new to the French healthcare system or want a more in-depth understanding - Reader question and answer section Aimed at non-French nationals living here, the guide gives an overview of what you are (and are not) covered for. There is also information for second-home owners and regular visitors.
Get news, views and information from France