• Buying in: Le Hameau du Moulin, French Alps
• Property price: € 384,000
• Loan amount: € 314,500
• Mortgage type: Repayment*
• Interest rate: 4.80%*
• LTV: 82%
• Term: 25 years

The background

Our British clients wanted the highest Loan to Value possible to reduce their deposit as their savings had been used to renovate their main residence. On the other hand, they wanted the longest duration possible to reduce their monthly payments as much as possible.

Our Approach

We offered them a 85% LTV on a 25 years repayment mortgage with a fixed interest rate of 4.80% (fixed for the whole duration) for this off-plan property.

The life insurance (mortgage cover) was not mandatory which reduced their overall cost (we always advise our clients to be insured but they already have existing policies in the UK).

One issue came up unfortunately which is quite rare: the valuation organised by the bank came back a bit short from the purchase price so the bank actually offered 85% on the valuation price which meant the overall LTV was actually 82%. The clients were still happy with the deal. 

The reason there was a difference in the valuation was because the cost of the materials have increased so the developer had to re-adjust the purchase price accordingly (by 3%). The surveyor however considered that the 3% increase in the cost of materials would not reflect on the actual value of the property.

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