• Buying in: Chatel
• Property price: 810,000 €
• Loan amount: 440,000 €
• Mortgage type: Repayment *
• Interest rate: 2.80% *
• LTV: 55%
• Term: 20 years

The background

Our client is Dutch, living in the Netherlands and has been employed by his employer for quite a while, which means the situation was very stable. 

Our Approach

As a EU resident with no link to the UK, we could target local banks from the French Alps that generally offer very lower rates that mainstream banks. 

Though the rate had increased since the beginning of the process, our analyst at the bank used all his skills and power to keep it as low as possible and the bank’s committee agreed to maintain the rate at 2.80% fixed over 20 years!

A life insurance (mortgage cover) is however required through the bank’s insurance products (though the Loi Hamon allows you to change the insurance within the first 12 months or at the anniversary date).

In exchange for this low rate, the client agreed to invest 100,000 € with the bank (placed on a broker account). It has become the norm with the local banks / private banks to require some assets under management to justify lending to a non-resident client.

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