What a bridging loan is, and who it is for
In France the product is called a prêt relais. A bank advances part of the estimated value of the home you are selling, and you repay the capital in one go when the sale completes. In the meantime you can put a deposit on, or fully pay for, the new property.
Only homeowners can use it. Tenants and people without property need a different kind of credit or support. If you own a home but are between jobs, the question is whether the bank believes you can carry the costs until the sale closes.
Why unemployment complicates the application
A lender reviews your income twice: once to confirm you can pay the monthly interest while the old home is on the market, and once for the mortgage on the new one. Unemployment benefit usually counts for little because it ends after a set period.
Some elements can offset that weakness. A working partner who signs as co-borrower helps most. A small balance left on your existing mortgage, savings you can tap, and a property that is likely to sell quickly also strengthen the file. None of this guarantees an offer.
- Household income, including a co-borrower
- Remaining balance on the current mortgage
- Signed sale mandate and recent valuations
- Savings available as a deposit or safety buffer
Typical terms published by French banks
La Banque Postale describes a loan of at least 12 months that can be renewed once, for up to 24 months, with a minimum amount of €15,000. Banque Populaire states that the advance usually covers 50% to 80% of the estimated value of the home being sold, often around 70%, after deducting what is still owed on it.
Repayment is in fine. You pay only interest and insurance during the term, or nothing at all with a full deferral, in which case interest is added to the debt. Terms differ between banks, so rely on the written offer.
A worked example, for illustration only
Say your home is valued at €250,000 and you still owe €100,000. A 70% advance is €175,000, leaving a net bridge of €75,000. At an assumed 4% annual rate, interest comes to about €250 a month, or €3,000 over a year.
Arrangement fees, guarantee costs and insurance come on top. Every extra month on the market adds to the total, so ask for the full APR (TAEG) and the overall cost at 12, 18 and 24 months.
Paperwork to gather
Expect to provide two sets of documents. For the home you are selling: the sale mandate, recent professional valuations, mandatory property diagnostics, any preliminary sale agreement and the repayment schedules of existing loans. For you: recent tax notices, bank statements and proof of income, including France Travail statements if you receive unemployment benefit.
For the property you are buying, banks ask for the purchase agreement or a precise description, your budget and the deposit you plan to pay.
The main risk: a sale that drags on
The loan falls due at the end of its term whether or not the house has sold. After the maximum period, the bank may offer to convert the balance into a standard repayment loan, which is heavy to bear without a job, or you may be pushed into cutting the price.
Before applying, test the asking price against several valuations and keep cash aside for the whole period. Treat the best-case sale date as optimistic.
If the bank says no
Selling first and buying afterwards is the safest route when income is uncertain. Temporary rented accommodation or a stay with relatives covers the gap. Another option is to postpone the purchase until a steady income returns, or to look at a cheaper home that needs no bridge.
The ADIL network offers free advice on housing finance. Be wary of any intermediary who asks for money upfront before a credit offer exists; a genuine bank does not charge for an application in that way.
Frequently asked questions
Can I get a bridging loan if my only income is unemployment benefit?
It is difficult. Banks look at your ability to pay interest and the future mortgage, and benefits that end after a set period weigh little. A working co-borrower, low debt on the old home or savings can help, but nothing is certain.
How long does a French bridging loan last?
The offers reviewed run for about 12 months, renewable once, up to 24 months in total. After that the bank may propose converting the balance into an ordinary repayment loan. Exact periods depend on the lender and are set out in the loan offer.
How much of my home's value can the bank advance?
Published information from banks gives a range of roughly 50% to 80% of the estimated value of the home being sold, often about 70%, minus the remaining mortgage balance. Each lender applies its own rule and its own valuation.
What happens if my home does not sell in time?
The loan is still due at maturity. The bank may offer a standard loan with monthly payments, or you may have to lower your price quickly. A realistic asking price, an active sale mandate and a cash reserve reduce that risk.
Useful organisations and links
- La Banque Postale – Prêt relaisBank page on its bridging loan: term, in fine repayment, minimum amount and the documents required (in French).
- Banque Populaire – Le crédit relaisExplains share of value advanced, partial or total deferral, costs and risks of a bridging loan (in French).
- ANIL – Housing information agencyFree, neutral housing finance advice and simulators, with local ADIL offices across France (in French).
Links to third-party organisations with no commercial tie to this site. Always check the conditions with them directly.