Latest transaction: €384,000 mortgage for a property in Chamonix

The background

In the current context (Post-Brexit and profitability issues with the French banks), it can be challenging to find the right option for our UK residents.

Our Approach

One of lenders can finance up to 80% LTV on a repayment mortgage over 20 years. Contrary to many others, the affordability calculation (the debt to income ratio) is based on the NET income which can be difficult.

When the committee gave its final approval, the clients were offered a choice between a fixed and a capped variable rate. The advantage of the capped variable rate is that if the rate goes up, it is capped at +1% (the increase is limited). However if the rate goes down, there is no limit. It is all about how you see the market going short term and long term. The clients believe the rates will go down in the coming months (this product is not available with many lenders that still favour the fixed rates).

It all went well and I have to tip my hat to the analyst who actually expedited the application! It took a bit of time at the end as we were waiting for some legal changes in the compromis de vente.

* The rate / the product may differ to what is currently offered since this mortgage has been agreed.