• Buying in: Alpe d’Huez
• Property price: €2,050,000
• Loan Amount: €1,000,000
• Mortgage Type: Amortising 
• Mortgage Term: 20
• Interest Rate: 1.35% fixed
• Loan-to-value: 50%

The contexte

Our clients are British residents with an excellent profile and high incomes. Their goal was to take a mortgage in order to benefit from tax optimization (and particularly avoid paying the French Property Wealth Tax called Impôt sur la Fortune Immobilière – ‘’IFI’’) and excellent conditions with a long-term, low, fixed rate. It makes so much sense applying for a French mortgage at the moment rather than purchasing the property in cash.

Our approach

Our clients signed the compromis de vente without a mortgage clause as the developer had other clients lined up who wanted to pay cash. We had to act as fast as possible or the entire operation could be jeopardized. Our goal was to find the best rate possible with a Loan to Value high enough to protect the clients from the IFI for a few years to come. We secured a loan with 50% LTV with a fixed rate of 1.35% over 20 years on a repayment basis. 

Another issue came up at the end as part of the cash required for the deposit was placed in the Channel Islands (which some banks are not keen to accept due to their historical tax advantages). We managed to help the clients secure the mortgage they wanted by using other funds from another destination.

Overall, the clients are ecstatic about the mortgage terms and so are we though it took a bit more time than we would have liked due to the lockdown.