For a written quotation or
further details pleasecontact
us , supplying your name, address and phone
number,and a representative will contact you as soon as
possible.
French
bridging loans work in a different way to UK ones, and
are nowhere near as expensive. They are treated as a normal
mortgage, and can be included as a clause suspensif in a
compromis de vente. If your UK property is sold before the
loan is required, you are not committed to take up the
loan.
- Loan to value percentage varies,
usually between 70% - 100% according to client's
circumstances, can be over 100% to cover work to be carried
out. Each case is considered based on client's financial
status.
- Mortgage fee to pay which is a
percentage of the loan.
- Security is on the French property,
it cannot be secured against a UK property.
- The loan can be for up to 2 years -
no penalty for early redemption.
- Rate is not loaded as in the UK, but
at normal mortgage rate, fixed for the duration of the loan.
- Monies are released directly to the
notaire for the final signing.
- Loan can be repaid on a monthly
basis (as in UK, and means you have two mortgage payments to
make each month) OR it can be rolled up and paid off in a
lump sum when the UK property sells. (Obviously there has to
be enough equity in the property to repay any UK borrowing
as well as the French bridge)
- There are no penalties for rolling
up the loan for 2 years.
- Application is made at the time of drawing up the
compromis de vente, and payslips, bank statements etc, are
required.
Comments from a UK client:
I have to
say that the French bridging finance option was a no brainer
as far as we were concerned. It is significantly cheaper than
the UK and, even more attractively, we have an option where we
only pay a monthly insurance premium for the duration of the
loan and only pay back the loan plus the interest for the
period we have had it when we want to redeem the loan. The
rate of interest we are paying is such that we can invest the
money we would be paying back here in the UK and make money on
it!!! I really cannot understand anyone shying away from
this option. It makes great sense to
us!
PLEASE BE AWARE -
- Your home is at risk if you do not keep up repayments on
a mortgage or other loan.
- The sterling equivalent of your liability under a
foreign currency mortgage may be increased by exchange
rate movements.
- APR calculations are based on the assumption of a
160,000 Euros mortgage repaid on a capital and interest
basis over 20 years, with interest calculated on the monthly
reducing capital balance. Charges to credit assumed are a
bank arrangement fee of 380 Euros and notaire's fees for
registration of the mortgage deed amounting to 1685 Euros.
All variable interest rates are assumed to remain unchanged
throughout the mortgage term.
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