French Buy to Let Finance

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Below are details of current mortgage/finance offers from our French mortgage broker.

Best Buy To Let Mortgage Options

Option 1 – 100% Mortgage with lowest possible deposit.

* 100% of price +100% of notaire's fee.
* Either: 2.7% interest-only until construction complete for new builds, or 2.7% for one year, then variable at 3 months Euribor + 1.3%; no early repayment fee.
* Or: 3.45% interest only until construction complete if new build, or 3.45% for one year, then variable at 3 month's Euribor +1.5%, capped at 5.45% over 20 years; early repayment fee 1.7%.
* The bank will want you to transfer savings to them, equal to 15% of the amount you have borrowed for a period of 10 years (10% if new build). These will yield 4% per annum tax free.

Option 2 – 80% Mortgage with lowest rate available in the market for a buy to let deal.

* 80% of the price, excluding notaire’s fees.
* Either: 2.5% year one, then 12 month Euribor + 1.25% over 20 years. No early repayment penalty on anniversary date.
* Or: 2.95% year one, then 12 month Euribor + 1.25% over 20 years, capped at 4.95% for 20 years. Early repayment penalty 1.5% of amount, prepaid.
* For a new build, during the first year of construction, this bank will allow any interest payments to be added to the total sum owed (i.e. interest is accrued but not paid during the first year). Thereafter, interest-only repayments are required in year two continuing until you actually receive the rent.
* 20 years maximum duration.

Option 3 – 80% Mortgage + furniture (homeowners only).

* 80% of price, excluding notaire’s fees. Interest is charged at 2.95% interest-only until construction complete, then at 1.2% above 3 months Euribor. Monthly payment amount will remain fixed throughout the loan.
* Early repayment penalty is 1.7% of amount pre-paid. No penalty after 5 years.

Option 4 – 80% Mortgage Interest-only.

* 80% purchase price, excluding notaire’s fees.
* 10 years interest-only, followed by 15 years repayment (max duration 25 years).
* 3.4% year one. Thereafter Euribor 1 month + 1.65%.
* No repayment penalty during the first 10 years. (£1000 minimum prepayment).
* Early repayment penalty of 1.875% in the following 15 years.

If you would like more information or have any questions please contact our leaseback and property investment desk

Rob Thorne of the French Property Company Ltd