Latest transaction: €3,430,000 mortgage for a property in Courchevel
- Buying in: Courchevel
- Property price: €5.4m
- Amount: €3.43m
- Rate: 2.35% fixed
- LTV: 64%
- Term: 12 years
- Type: Interest only
Our client has an excellent profile. However, it was a challenging case as he wanted an interest-only mortgage and this is not a common product in France, especially for such a large sum. Also, the client had plans to extend the property which meant that we needed an official architect contract to present the new project to the bank.
We gathered all the documents for the extension project before even applying for the mortgage. We wanted to find out if the bank would be willing to finance the building work. The key was to make sure that the bank would agree with the valuation of the property as the mortgage amount is based on how much the bank thinks the property is worth.
In the end, the bank decided to lower their risk exposure by reducing the mortgage amount from €4m to €3.4m. This is understandable as it was an interest-only loan which means that the total debt does not reduce over time. Though less money, the client was still happy with the deal.