Fixed & Variable Rate French Mortgages
|Rate description||Max term||Type||LTV||Deferred payment||Bank set up fees||Early repayment fees|
|1.50%||2.21%||Variable||20 years||Tracker repayment||70% (100% LTV with 30% collateral)||24 months||1% capped||None||Enquire|
|1.50%||2.11%||Fixed for the term||20 years||Fixed repayment||70% (100% LTV with 30% collateral to be held in €)||24 months||€2,000||6 months interest on the amount repaid||Enquire|
|2.05%||2.69%||Fixed for 3 months at 2.05% then Euribor 3 months +2.35%||20 years||Tracker repayment||85%||24 months||1% capped||None||Enquire|
|2.20%||2.78%||Fixed rate for the term||20 years||Fixed repayment||70%||24 months||1% capped||6 months interest on the amount repaid||Enquire|
|2.80%||3.40%||Fixed rate for the term||25 years||Fixed repayment||85%||24 Months||1% capped||6 months interest on the amount repaid||Enquire|
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.
Interest Only French Mortgages
|Pure Rate||APRC (for €100k)||Rate description||Max term||Mortgage type||LTV||Deferred payment||Bank set up fees||Early repayment|
|1.87%||2.58%||Fixed rate for the term||5 years||Fixed interest only||100% (min AUM of €1m)||None||1% capped||6 months interest on the amount repaid||Enquire|
|2.30%||2.96%||Tracker 3 month Euribor + 2.60%||14 years||Interest only||75%||24 Months||1% capped||None||Enquire|
|2.59%||3.11%||Fixed for the term||10 years||Interest only||100% (min AUM of €1m)||None||1% capped||None||Enquire|
|2.65%||3.67%||Fixed rate for the term||7 years||Fixed interest only||75%||24 Months||1% capped||6 months interest on the amount repaid||Enquire|
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.
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.
All figures above are an estimation and are suject to change at any time.
All finance is subject to status, with complete terms found in the actual mortgage offer.
The client was a retired Doctor who has some property investments in both the UK and France. He was eager to buy a new villa in a small village called Èze near Nice. He already had a mortgage-free property in the same town, but had decided to upgrade. He did not want to sell the existing property immediately as the rental of the property was going well.
Having discussed the options with the client’s existing bank, we confirmed that the bank could not offer an interest-only product as in their view the net assets in his portfolio were not sufficient to match their strict criteria. Furthermore, they refused to consider a mortgage on a 20 years on repayment basis as the client would be over 80 years old at the end of the term – the maximum repayment age… Read more transactions
Some banks, especially in the region of Paris, can be reluctant to work with non-residents.
They require the clients to have some history with France and a plan to live in France on the short-term. Basically, they have no issue financing a main residence but become hesitant for holiday home or investment properties. It is a shame as some banks have wonderful terms that could just create a whole new dimension on the Parisian property / finance market.
The client, a French entrepreneur who lives in the UK, was buying the last 2 floors of a Haussmann building to convert them into a duplex loft. The project was ambitious… Read more transactions
The clients are avid skiers with a young family. They have been going to Courchevel for many years and dreamt of owning a property there for years. The project that our clients decided to buy was an off-plan property with a rental option included. This rental option meant that the clients signed a lease with the property developer where they are going to manage and rent out the property for 9 years. This is even more popular practice in the French Alps, because the local authorities fear the investors will not want to rent out their properties in already supply-deprived ski resorts.
This is why a percentage of these properties will be sold with a lease… Read more transactions