March 2016 – French Mortgage Transaction of the Month

Buyers choose 50/50 interest only & repayment mortgages

The lure of an interest only mortgage is normally the low monthly payments, but with long-term French mortgage rates so low, many clients are opting for a mixed interest only and repayment set up.

A 50/50 arrangement this way provides a combination of both low monthly payments and some relative long-term security provided by the 20-25 year fixed rate mortgage options.

As interest only loans in France often require foreign buyers to have net assets to the same value of the requested loan amount, buyers can sometimes fail when it comes to affordability. The 50/50 solution therefore provides them with a way of accessing the interest only market.