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Independent Financial Adviser est. 1988
French and Spanish Mortgage Brokers
French Tax Planning Specialists

Is now the time to remortgage your French property?

All time low interest rates in the EUROZONE

Due to continued low Euribor rates many French banks are offering mortgage interest rates on a re-mortgage basis at, or close to an all time low.

There has never been a better time to look at the options available to move your French mortgage to another provider.

With fixed rates available at 1.95% (2.73% typical APRC)* now is the time to review your mortgage.

The table below gives an example of potential savings taking into account a reduction in interest rates of 2.15%,  and the  associated establishment costs of the replacement mortgage.

A 15 year fixed rate French mortgage taken in October 2005

All prices in € Existing mortgage New mortgage Savings
Mortgage amount 200,000 200,000 -
Term 10 years 10 years -
Interest rate 5.10% (5.80 APR typical)* 2.95% (3.80% APR typical)* 2.15%
Monthly Payment 2,131.10 1,926.60 204.40
Cumulative paid interest over term 55,732 31,192 24,540
Notaire's fee 0 3,060 -3,060
Early repayment fee (assumed 3% of balance outstanding) 0 6,000 -6,000
Total savings     15.480

As can be seen even taking into account the ancillary costs and redemption penalties the long term savings in interest are substantial

The above calculation ignores the comparative cost or saving offered by the life assurance policy replacing that already in existence.

The table assumes the establishment costs are paid up front but these can be added to the loan.

How To Proceed From Here?

The next stage of the process is to arrange a review of your existing mortgage against the other options available in the market. With a copy of your original mortgage offer, a brief financial fact find and an up-to- date mortgage statement Charles Hamer will carry out a detailed assessment of the options available, in order to confirm whether a re-mortgage is the most suitable choice for you.

* In the above example the APRC calculation is based on a mortgage of  200,000€,a term of 10 years, assumed cost of life cover of 46€ per month and standard notaire's fees.

Life assurance costs and terms would be based on the life assurance company's assessment of your medical circumstances.

Your home is at risk if you do not keep up your repayments on a mortgage or loan secured on it.

The Sterling equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements.