French Mortgage Transaction of the month

Transaction of the month – 20 year mixed French mortgage with a variable rate at 2.60% and fixed rate at 3.25%

August’s transaction of the month is quite interesting. Essentially it was a 80% LTV French mortgage for a property on the South coast for a property priced at €832,000 including VAT, but the mortgage was actually split into two.

Two thirds of the mortgage on a fixed rate to make the most of the historically low rates, securing them long term over 20 years, but the remaining one third of the mortgage was put on on a variable rate so they would be allowed to make early redemption payments with NO penalty fee. Overall this was a great way of utilising both the super low rates currently available and also the flexibility in the market.