This month’s French mortgage transaction of the month highlights the renewed trend of international clients taking mixed French mortgages; half repayment, half interest only, instead of simply repayment only.
Mixed French mortgages are a clever way of reducing the amount of interest you pay overall by structuring your mortgage in a way that enables early repayments without paying the sometimes-costly early repayment fees that are associated with long term fixed rate repayment mortgages.
Interest only French mortgages often allow for early repayments without penalty fees, so by taking half of the overall lending on an interest only product over 14 years, the buyer has a large chunk of the lending which can be paid off early.
It was this structure that a client opted for recently for an €800,000 three bedroom apartment in the Portes du Soleil, in a resort that’s very popular with the British.
In addition to having the ability to pay some of the mortgage off early, the client also preferred that the overall monthly repayments would be lower, due to the lower monthly payments on the interest only part of the mortgage.
This trend is often an indication of positivity in the financial circuits, with those opting for a mixed mortgage often expecting a windfall from bonuses. Though we often see buyers selling an existing property elsewhere to facilitate this.
To see if a mixed French mortgage could work for you, please feel free to get in touch with one of our French mortgage experts today.