French rates have risen over the past month, but incredible long term value can still be locked, as we show in this month’s French Mortgage Transaction of the Month.
We secured a 2.70% fixed repayment loan over 20 years for a British buyer working in both Paris and London. The €300,000 loan was on a property of around €375,000 for a for a one bedroom new-build apartment in Paris.
As the property is off-plan the buyer only has to pay 2.5-3% Notary fees, instead of the 7-8% payable on resale property, therefore the saving here is considerable and was definitely worth it to this client who was happy to wait for the eventual completion date (Q4 2016).
All clients taking on a mortgage in France must be able to show ‘rainy day funds’, which are simply a level of savings to show you could continue to make repayments should anything go wrong; job loss, etc.