Pure rateAPRC
(for €100k)
Rate descriptionMax termTypeLTVDeferred paymentBank set up feesEarly repayment fees 
1.90%3.04%Fixed for 3 months at 2.5% then Euribor 3 months +1.90%20 yearsTracker repayment80%24 months1% cappedNoneEnquire
1.95%2.47%Fixed rate for the term15 yearsFixed repayment80% 24 Months1% capped 6 months interest on the amount repaidEnquire
2.15%2.64%Fixed rate for the term20 yearsFixed repayment80% 24 Months1% capped6 months interest on the amount repaidEnquire
2.60%3.16%Fixed rate for the term20 yearsFixed repayment85%24 Months1% capped6 months interest on the amount repaidEnquire
2.20%2.73%Euribor 3 months and capped +1.5% for 10 years 25 yearsCapped repayment 85%24 Months1% capped NoneEnquire
2.45%2.73%Fixed rate for the term 25 yearsFixed repayment 80%24 Months1% capped6 months interest on the amount repaidEnquire
2.70%3.23%Fixed rate for the term25 yearsFixed repayment85%24 Months1% capped6 months interest on the amount repaidEnquire

Learn more about French Repayment Mortgages
The above French mortgage best buys are for Repayment Mortgages. Repayment mortgages are generally more expensive as you have to pay the interest on the €100,000 and also pay off a portion of the capital. Of course with French mortgage rates so low the long term value can be substantial, especially when compared to rates of other European countries. Repayment mortgages are often called ‘capital and interest’ mortgages and the payment for €100,000 rises to say, €7200 per year, or almost double the cost of an interest only mortgage. Repayment mortgages are best used for main residences or for investments, like leasebacks, where the aim is to pay the mortgage off and/or enjoy the income. Repayment mortgages (prêt ammortissables) are the most common mortgages in France and offer the most protection.

APR

Annual Percentage Rate of Charge, usually called an ‘APRC’ is an annual interest rate which takes into account fees and charges to reflect the total cost of your mortgage. Your Mortgage Illustration will detail the fees which are included in this calculation. An APRC is calculated using a standard method so it provides an effective way for you to compare quotes from different lenders.

Pure RateAPRC (for €100k)Rate descriptionMax termMortgage type LTVDeferred paymentBank set up feesEarly repayment 
2.50%

3.13%Tracker 3 month Euribor + 2.80% 14 years Interest only75% 24 Months1% cappedNoneEnquire
2.50%3.13%Variable tracker with cap at 4.00% for 10 years25 yearsInterest only up to 7 years, 18 years repayment75%24 Months1% cappedNoneEnquire
3.05%3.68%Fixed rate for the term14 yearsFixed interest only75%24 Months1% capped1.525% of early repayment amountEnquire

Learn more about French Interest Only Mortgages
In a strict ‘interest only’ mortgage, during the period of the loan the borrower pays only the interest portion. In France interest only mortgages are know as ‘prêt in fine’ mortgages and are many ways to structure these so be sure to choose the right one for you. With interest only French mortgages the debt on the property is not being covered but in some cases the capital is normally secured through an endowment policy taken out with the lender that pays off the capital at the end of the loan period. There are variants on this approach, that do involve the repayment of capital during the later phases of the mortgage.

MORTGAGE AMOUNT
DURATION (YEARS)
INTEREST RATE (%)
Monthly repayment (Interest and Capital):
Monthly payment (Interest only):

RECENT TRANSACTIONS

French mortgage options

3.10% French mortgage for fixed for 20 years
€328,000 ski apartment
Les Porte du Soleil, French Alps

Whilst September’s transaction of the month is quite a simple one – just a 20 year fixed on an average loan amount – the interesting aspect of it is in the value. With rates dropping to new all time lows we were able to secure a fantastic loan for a couple buying their first property abroad in a popular resort in Les Portes du Soleil, Haute Savoie.

With the duration of the loan over 20 years and such a low rate they did not need to factor in rental income in order to afford the property, instead it will just be there ready for whenever they want to use it.

French mortgage options

3.25%, 20 year mixed French mortgage
€832,000 second home
South of France

August’s transaction of the month is quite interesting. Essentially it was a 80% LTV French mortgage for a property on the South coast for a property priced at €832,000 including VAT, but the mortgage was actually split into two.

Two thirds of the mortgage on a fixed rate to make the most of the historically low rates, securing them long term over 20 years, but the remaining one third of the mortgage was put on on a variable rate so they would be allowed to make early redemption payments with NO penalty fee. Overall this was a great way of utilising both the super low rates currently available and also the flexibility in the market.

Les Menuires property

3.25%, 20 years fixed
€330,000 Leaseback property
Les Menuires, 3 Valleys

It was great to see fixed rates back to these historic lows. A fixed rate for 20 years at 3.25% creates a lot of value over the long term. This was a 70% loan on a leaseback property in Les Menuires in the Three Valleys priced at €330,000 excluding VAT. The property has a guaranteed rental income of 3.3% and a week in high, medium and low season.

Belle Plagne properties for sale

<1% variable loan through private banking structure
Borrowing €2.8m
For property in Belle Plagne

This 40% loan was made with a private bank in Luxembourg to an SCI created in France. The loan was secured against the property (in Belle Plagne) to reduce the ISF tax bill and the borrower placed an additional €3.5M in assets with the bank in floating rate bonds which increase in value as interest rates rise in order to hedge against any increases to interest rates in the future.

Val D'Isere

3.2% interest only, fixed for 9 years
€2.5m loan
€6m luxury in Val d’Isere

This month we received an agreement for a loan at €2.5M euros on a property in the Alps valued at €6M. The rate on the loan is 3.2% fixed for 9 years on an interest only basis. This rate represents excellent value as the recommended rate for the French government to borrow at ( the TEC 10 index) is currently 1.8% meaning this loan has an effective margin of 1.4%.

Val D'Isere property for sale

2.4% variable
€650,000 Equity release on buy to let
Val d’Isere

Nice loan on 40% of the value of the property with an excellent variable rate. Loan was used to part finance a main residence acquisition in the UK.

Сannes property for sale

3.50%, 20 year capped
€350,000 Second home purchase in Cannes
Cannes

This loan on an excellent fixed rate was made to a couple on very large incomes and went through extremely quickly and was completed in less than a month.