Both the interest due and part-captial paid back monthly

The rates are generally 1-3% lower than UK/USA interest rates

The Euro Interbank Offered Rate (EURIBOR) is used as the base rate

Generally added margin of 0.5%-2% above 3 or 12 month EURIBOR

Click here for examples of current interest rates

With an interest only mortgage (prêt in fine), as the name suggests you only pay the interest on the amount you borrow. If you borrow €200,000 at a 2% interest rate you will have to pay €4000 per year.

After 20 years you will still owe the €200,000 and have to sell the property or find funds from elsewhere to pay back the money you have borrowed.

Hopefully the property you bought will have appreciated in the meantime so you will have made a profit whilst keeping your costs down.

Interest only mortgages are the mortgage of choice for investors looking to make a return by selling the property for more than the purchase price..

Bespoke tailored made mortgages

Exotic mortgage product choices

Reduced monthly mortgage payments at the outset

Instant feedback to member questions

Back-to-back mortgage arrangement

Offset any potential French Property Wealth Tax liability ( IFI )

Interest rate fixed throughout mortgage term

Rate can never change

Monthly payments stay the same

Rates starting from 0.90% – 2.60%

3% redemption penalty typically included, though capped by French banking law to no more than 6 months equivalent interest

Base rate used in typically EURIBOR 3 month

A margin is added onto the base rate, 0.50% – 2.00%

Rate is reviewed every 3 or 12 months

Interest rate cannot go higher than the cap level

Cap level typically 1% or 2% above starting rate

Typically free of early redemption charges

Variable Interest rates that move in line with an underlying official interest rate

In most cases with French banks it is the EURIBOR 3 month index rate

A margin is typically added onto the base rate

From 0.50% – 2.10%

Reviewed every quarter or yearly