• Buying in: Les Gets
• Property price: €612,500
• Loan amount: €350,000
• Mortgage type: Repayment *
• Interest rate: 3.97% *
• LTV: 57%
• Term: 20 years

The background

The client (UK based) was looking for the best possible rate in the current market with a preferred requirement for a variable rate. The loan-to-value was not a factor as the client had a large deposit available.

Our Approach

Most banks offer rates fixed for the whole duration in France and post-Brexit, options can be limited for UK residents.

Fortunately, one of our lenders can finance UK residents and also offer a variable-capped rate for the repayment mortgage.

The rate is capped at a certain level (in this case, +1% so 4.97%) which gives security to the clients. However, when the rate goes down, the client will benefit from the reduction.

It is a great option as you have both flexibility and safety altogether.

A life insurance (mortgage protection), building and content insurance and a bit of savings in a deposit account were required as part of the mortgage package, on top of opening the bank account (which is necessary anyway for your French bills).

All in all, it took 64 days from the moment we sent the mortgage application to the bank to the moment we had the mortgage offer electronically printed which I think is quite fast.

This is a star product at the moment but it is not available to anyone: you must be a UK resident and/or British citizen and the affordability is calculated on the NET income rather than the gross (which means your mortgage power can be quite reduced).

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