Latest transaction: €500,000 Loan for a property in St Martin de Belleville, French Alps

Posted on 10 Jun 2020 in Transactions
Latest transaction: €500,000 Loan for a property in St Martin de Belleville, French Alps

Buying in: St Martin de Belleville
Property price:
 €1,100,000
Mortgage amount: €500,000
Mortgage type: Repayment
Mortgage term: 20 years
Interest rate: 1.50% Fixed
Loan-to-value: 45%

The background

Our British client is a Hong Kong resident. Renting in Hong Kong is very expensive and it was difficult to fit within the debt to income ratio limit allowed by the French banks (your outgoings cannot exceed 33% of your income). The client also had a mortgage on a UK property for which he was receiving some rental income.

Our Approach

We told the bank that the client would, at some point in the close future, come back to the UK in his already-owned property. 

We just convinced the bank not to take into account the rental income received in the UK and to leave out the Hong Kong rent.

It worked out pretty well and the client even got a very good rate!

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