Mortgages in France – LOW COST MORTGAGES
Mortgages in France – Buying a property in France with mortgage funding.
There are many financial options available for those people who wish to purchase a property in France with mortgage funding:
Interest only mortgage – this is generally suitable for those people who have a substantial net worth. It is a mortgage where there is no underlying policy to guarantee the loan – there is a first charge on the property on which the mortgage is taken. You will only be paying interest on the loan monthly, so your current outgoings will be reduced – BUT you must be in a position to repay the totality of the loan at term. The loan to value for this produce is generally 80%, with a payment term of 7 years to 20 years, early repayment is possible.
Interest and repayment loans but with a fixed interest rate on the repayment for 2 or 5 years – this enables you to budget your finances knowing that you have the rate of monthly repayments fixed for a period of 2 or 5 years – after which the loan becomes variable- attention should be paid in the case of an interest rate fluctuation during the term of the fixed rate interest period as this may affect the term of the loan.