Tourrettes-sur-Loup / South of France: €1,172,325 Mortgage, 70% LTV, Variable Repayment, 1.75% capped, 15years


The Profile

Property price: €1,674,750
Buying in: Tourrettes-sur-Loup
Mortgage Amount: €1,172,325
LTV: 70%
Type: Variable Repayment
Rate: 1.75% capped at + 1% for the first 7 years
Term: 15years

The context

Having made a gentleman’s agreement to pay the vendors in Sterling, speed was of paramount importance to this HNWI.

Our approach

We applied for 70% LTV to waive the life insurance requirement and secure the offer in just over a month.

The standard mortgage in France is a 20 year repayment fixed rate. However, our advice was to go for a 15 year term to reduce total interest paid. Such adjustment can easily save borrowers tens of thousands. So, it is definitely worth looking at shorter durations for second purchases when income is available.

Furthermore, the client opted for a variable rate to not have any early repayment charges. The capped rate allows you to reap the benefits of low interest rate while still providing security against future interest rate movements.