December 2015 – French Mortgage Transaction of the Month

Just like this month’s area guide, our transaction of the month takes us to Chatel in the Les Portes du Soleil. Here a client wanted to utilise the value currently available across the mortgage market to suit his own long terms plans.

On a property value of around €530,000 the client opted for a split mortgage across two loans; one variable at +1.90% above the 3 month Euribor (after being fixed at 2.5% for three months), with the other half on a repayment mortgage.

Most clients opting for such mixed finance arrangements are do so when they plan to pay a bulk of the loan off early. Variable mortgage products are much more flexible for such a purpose, but of course do not come with the same levels of security over the rates long term, hence decision to choose a mixed mortgage. Overall the loan to value here was around 80%.