Latest transaction: €300,000 mortgage in Messanges
- Buying in: Messanges
- Property price: €392,000
- Loan amount: €300,000
- Mortgage type: Repayment *
- Interest rate: 4.32% *
- LTV: 76%
- Term: 15 years
Our clients came to us to finance a French property in Nouvelle-Aquitaine in south-western France. The first bank we approached could not finance this new build purchase as it was considered not urban enough.
We switched to another lenders of ours that did not have any restrictions on the location.
Based on the market situation where the rates are supposed to go down in the next few months, we decided to go for a variable-capped rate for the repayment mortgage.
The rate is capped at a certain level (in this case, +1% so 5.32%) which gives security to the clients that they will not pay a crazy rate like some of our parents did back in the 1980’s. However, when the rate goes down, the client will benefit from the reduction.
It is a great option as you dont have to worry about having to refinance your mortgage later on: you have 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 60 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.
* The rate / the product may differ to what is currently offered since this mortgage has been agreed.