• Buying in: Meribel
• Property price: €2,280,000
• Loan Amount: €1,500,000
• Mortgage Type: Mixed Mortgage
• Mortgage Term: 20 years
• Interest Rate: 2.35%
• Loan-to-value: 65%

The background

Our client is a French expat living in Hong Kong looking for a lifestyle investment in Meribel. His application was strong and the client had 2 requests:

• Optimizing his purchase with a high LTV 
• Having a mixed mortgage in order to reduce his cashflow outgoings

Our approach

The product our client was looking for is not really commun. I would even dare to say it is extremely rare amongst retails banks, a bit less with private banks. Unfortunately we could not use the help of our private banks as the property is Off Plan, which is not favoured by them.

However French Private Finance has a few tricks (and a few good lenders) and we were able to secure a deal even more special which excited our client: an Interest only loan (5 years) to keep the monthly cashflow as low as possible followed by an amortisation period (15 years) to reduce the debt over time.

This is exactly what our client wanted. This type of mortgage is more difficult to obtain because the affordability of total mortgage amount is calculated based on a repayment mortgage over 15 years. The monthly repayment are hence high.

While usually the LTV is 75%, because the client bought with an SARL (French company vehicle) the LTV was slightly reduced. On top of it, with the COVID, the bank tried to limit its exposition and preferred to further reduce the LTV to 65%. That was a bit of a disappointment for our client but that did not lessen his overall appreciation of the special deal he just got.