April 2015 – French Mortgage Transaction of the Month

Fixed 20-year mortgages become the most popular product as non-resdient buyers continue to get the most out of the market

Over the past four weeks the majority of our applications have been for classic freehold property (not leaseback) with buyers opting for long term fixed rates of 2.55% over 20 years, usually on 80% loan to value.

Therefore its no surprise that this month’s French mortgage transaction of the month also falls into this category. The couple in question bought a ski property in Chalet at €500,000, providing 20% upfront with the remaining 80% on loan at 2.55% across 20 years.

The couple had the means to shorten the term, although with some family planning circumstances potentially coming into play over the next 10 years they opted to keep the term at 20 years at the low rate and therefore minimise they monthly outlay.