French Mortgage Transaction of the Month

20 year mixed French mortgage with a variable rate at 2.00% and fixed rate at 3.00%

November’s transaction of the month is another example of a growing trend with both current owners and new buyers who are opting to secure mixed variable & fixed rate mortgages to get the best from both types of finance.

The couple – who were from Sussex and in their late 40s – were acquiring an 80% LTV French mortgage for large three bedroom property in Les Gets. The property was priced at €792,000 including VAT and two thirds of the mortgage was on a fixed rate to make the most of the historically low rates, securing them long term over 20 years.

The couple wanted to be able to make early redemption payments without incurring any penalty fees so they opted to put the remaining one third of the mortgage on a variable rate. Overall this was a great way of exploiting both the super low rates and also the flexibility in the market.