• Buying in: Val d’Isere
• Property price: €2,000,000
• Loan Amount: €1,800,000
• Mortgage Type: Repayment
• Mortgage Term: 20 years
• Interest Rate: 1.35% fixed for the duration of the loan
• Loan-to-value: 90% + 30% collateral

The background

For French banks, income is always the focus when it comes to deciding whether or not credit will be granted to the borrower. This made things very challenging for this retired CEO living in Mauritius. 

Our approach

FPF played the asset to loan ratio card, claiming that the client had a liquid portfolio 10 times over the mortgage amount he was after and no existing debts. Being a French national, our former CEO already had an attractive proposal from his private bank in Luxemburg and came to us looking for an equally low cost solution with a higher level of leverage. Our lending partner was able to provide 25% more finance on the property while asking for 20% less in assets under management as well as a longer term mortgage.

All the above made our finance structure more attractive from a wealth tax perspective and the only downside for the client was to initiate a relationship with a new bank.