Mortgages for a second home in the mountains: what banks will be looking at in 2026
Buying a second home in the mountains: what are the mortgage options in 2026?
Mortgage for a holiday home
Financing a second home generally works on the same basis as a standard property purchase. The buyer can apply for a fixed-rate mortgage with a repayment plan, the term of which is usually tailored to their income, age, deposit and the cost of the property.
In France, the framework set by the High Council for Financial Stability (HCSF) stipulates, in particular, a maximum debt-to-income ratio of 35 per cent and a loan term that should not normally exceed 25 years, with certain exceptional cases allowing for a grace period. Banks also have a limited degree of flexibility.
The 2026 mortgage interest rate should therefore be viewed as one component of the overall cost and not as the sole criterion for decision-making. Borrower’s insurance, guarantees, application fees and the loan term also have an impact on the final cost.
In the case of financing for a mountain chalet or a flat intended as a second home, the bank will primarily seek to determine whether the project remains manageable for the borrower, even in the event of unforeseen expenses or a temporary drop in income.
The criteria that banks assess before granting a mortgage
Income and job security
The bank’s first question is simple: does the borrower have a sufficiently regular income to cover a new monthly repayment?
Salaries, professional earnings, pensions or other regular income may be taken into account depending on their nature and stability. An employee on a permanent contract does not have the same profile as a self-employed person, whose income may vary significantly from one year to the next.
For a second home project, this assessment is important because the bank generally considers the new loan to be in addition to the expenses associated with the main residence.
Debt ratio and disposable income
The debt-to-income ratio is a key focus of the study. The HCSF has set a maximum benchmark of 35 per cent for borrowing costs as a proportion of income, with a regulated margin of flexibility for banks.
However, reaching 35 per cent does not automatically mean that the loan will be approved. The bank also examines the disposable income, i.e. the amount available to the household after paying its bills.
Personal contribution
A deposit is often a key factor in the loan application process.
It can be used to finance part of the purchase price, as well as the costs associated with the purchase. The higher the amount of finance requested from the bank in relation to the property’s value, the more the application may be subject to lending conditions.
Data from the Banque de France shows that in July 2026, the average personal deposit made by new borrowers stood at nearly 40 000 €.
Second homes in the mountains: why are these property projects assessed differently?
A holiday apartment is not like any other property. Its value depends heavily on its location, accessibility, condition, facilities and appeal to tourists.
The bank therefore also seeks to understand the property that will serve as security for the loan.
The property’s location and the local market value
In Les Belleville, two flats of a similar size can have very different values depending on their neighbourhood, altitude, proximity to the slopes and shops, aspect, view, condition and parking facilities.
As a guide, estimates published in September 2026 by MeilleursAgents put the average price of a flat in Les Menuires at around €6,730 per square metre, with a very wide range depending on the property. These figures are market estimates and not an official value applicable to each individual flat.
For both the bank and the buyer, the key issue is therefore to ensure that the purchase price remains in line with the local market.
The potential for holiday lettings
A property owner may choose to live in their flat for part of the year and let it out during certain periods.
This option can help ensure the financial viability of the project, but it should not be presented as a guaranteed income.
In Belleville, the local council also runs a ‘Homeowners’ Centre’ dedicated in particular to issues relating to renovation, letting management and enhancing the value of furnished properties.
Service charges in holiday resorts
Service charges are an item that must be factored in from the outset of the financing simulation.
In a holiday residence, these may relate to central heating, water, lifts, the cleaning of communal areas, communal facilities or various maintenance contracts.
It is particularly important to distinguish between routine service charges and one-off works that may be approved by a vote.
When buying a property in the 3 Vallées, consulting the latest minutes of general meetings and the financial information for the co-ownership scheme provides a much more realistic picture of the property’s future costs.
Can rental income be included in your credit history?
Yes, rental income may be taken into account when assessing an application, but how it is treated depends, in particular, on its nature and the bank’s policy.
For a holiday let project, an application will be viewed more favourably if it includes a well-documented estimate: rates charged in the area, periods when the property is available for let, the property’s capacity, rental history where available, and a realistic estimate of the occupancy rate.
What other costs should you expect to pay on top of the purchase price?
Notary fees
For an older property, purchase costs generally amount to around 7 to 8 per cent of the sale price. For new-build properties, they are usually lower, at around 2 to 3 per cent.
In a resort such as Les Menuires, where a large proportion of the housing stock consists of existing properties, this cost must be factored into the financing plan at a very early stage.
Guarantee fees and bank charges
Financing may also incur application fees, guarantee fees and borrower insurance premiums.
The cost depends on the financing arrangement chosen and the bank. These charges must be taken into account when comparing offers, in the same way as the interest rate.
Service charges and taxation
The annual budget must include service charges, council tax and the housing tax on the second home.
The housing tax remains payable on second homes, unlike the main residence. The amount due depends, in particular, on the cadastral rental value and the applicable rates.
Furniture and equipment for a holiday let
A property intended for short-term letting should be treated as a tourist product: bedding, furniture, a fully fitted kitchen, storage space, décor, household appliances and facilities suited to the number of guests.
These costs are sometimes overlooked in the initial budget, even though they can represent a significant portion of the budget for a flat in need of renovation.
How should you prepare your mortgage application in 2026?
Documents to be provided
The bank will generally request supporting documents to assess your income, outgoings, savings and existing loans: identity documents, proof of income, tax assessment notices, bank statements, repayment schedules for outstanding loans and proof of assets, depending on your circumstances.
When buying a property in the mountains, it is also useful to provide the preliminary sale agreement or draft agreement, documents relating to the co-ownership, quotes for any building work and an estimate of the rental income if the property is to be let.
Presenting your property project clearly
A well-prepared application should enable the bank adviser to quickly understand the project. The property price, deposit, amount requested, desired loan term, estimated monthly repayment, any renovation work, service charges and the intended use of the property must be clearly set out.
Promoting a holiday let project
If part of the income is to come from rental, provide concrete figures rather than a simple annual estimate.
A record of previous rental income, a comparative analysis of similar properties or a valuation based on the property’s specific characteristics will help to better substantiate the project.
Anticipating the bank’s questions
- Why this resort?
- Why this property?
- What will you use it for personally?
- How many weeks will you rent it out for?
- What is your budget for renovation work?
- What are the service charges?
- How much will you have left in savings after the purchase?
Buying in Les Belleville: the unique features of a property investment in a holiday resort
Resorts benefit from a well-established tourism market and a property portfolio comprising numerous flat-ownership properties. For a buyer, the precise location of the property is therefore crucial: access to the slopes, proximity to shops, the option to ski straight back to the accommodation (depending on the area), the view, aspect, floor level, balcony, parking and guest capacity can all influence the property’s appeal.
The possibility of letting the property is another important factor. La Belleville offers services specifically for owners of furnished holiday lets and outlines the necessary procedures for seasonal letting.
Finally, the condition of the block of flats must be a key consideration. A flat advertised at an attractive price may lose some of its appeal if major communal works are on the cards.
Why have your plans assessed before you start looking for a property?
Knowing your borrowing capacity enables you to focus on properties that genuinely fit your budget and avoid planning a project based on an excessively high monthly repayment. For a second home in the mountains, this step also allows you to factor in, from the outset, service charges, renovation costs and expenses associated with any seasonal letting.
In 2026, therefore, financing a second home in the mountains requires a holistic approach to the entire project. Income and debt-to-income ratio remain essential, but they are not enough on their own. The quality of the property, its value on the local market, the condition of the owners’ association, the available deposit and the ability to maintain a safety net of savings are all factors that may influence the bank’s decision.
In the Alps, this holistic approach is particularly important: a well-located flat, correctly valued and offering sound rental potential can constitute an attractive investment opportunity, provided that its financing is tailored to the buyer’s actual financial capacity.
Are you thinking of buying a second home, investing, or simply discussing your plans? The team at Agence des Alpes is here to welcome you, offer advice and help you move forward with confidence as you consider your options.
Come and see us at the agency – we’d be delighted to chat with you!
Charly.G
