Buying in: Méribel, French Alps.
Property price: €2,800,000
Mortgage amount: €1,400,000
Mortgage type: Interest Only
Mortgage term: 14 years
Interest rate: 2.20% variable
This borrower’s main requirement was the ability to pay off the mortgage in chunks without penalty. As a business owner, he also liked the idea of an interest only mortgage which gave him more freedom on his company drawings to lower his tax.
We targeted a variable rate on an interest only mortgage to waive the early repayment charge and benefit from the lower variable rates (they are not always offered by the banks though as considered a liability compared to the security of the still-low fixed rate).
Lastly, we were able to waive the life insurance thanks to the new policy from the bank where it is not a requisite anymore.