Latest transaction: €701,750 mortgage for a property in Sainte-Foy-Tarretaise
Posted on 28 Jul 2021 in Transactions
- Buying in: Sainte-Foy-Tarrentaise (French Alps)
- Property price: €1,002,500
- Loan amount: €701,750
- Type: Repayment
- LTV: 70%
- Term: 20 years
- Rate: 1.75% fixed
This portfolio manager was looking to diversify his assets in property while retaining the ability to grow wealth through financial instruments.
An interest only mortgage was the best fit as the monthly cost is significantly smaller compared to a capital repayment mortgage which allows the client to take other mortgages to invest in other properties.
This solution requires at least 100% of the mortgage amount in net assets to prove the bank that the loan can be repaid at the end of the term.