The huge amounts of long term value currently available in the French mortgage market are pushing those with a long term view to stretch their loan duration to the maximum possible length.
This month’s French mortgage transaction of the month is an example of the long term game some buyers are playing. The client, 40 years old, was buying a €540,000 property in the Portes du Soleil region of the French Alps. He had enough capital to put upfront in order to reduce the duration of the loan but wanted to keep this capital available.
By taking a 25 year fixed rate mortgage at 2.90% on a repayment basis, the client was able to know exactly what he would be paying each month as he nears retirement and could therefore arrange his other finances and investments to suit this plan.