.The French banks usually index their rates to Euribor 3-month currently at 0.827%. But if you are currently looking for a mortgage to finance your project, a new financial product with variable rate might be suitable for you.
One of our French bank partners just launched a new product in order to finance a holiday home or a leaseback: “the Foncier 3-month variable rate”. This mortgage is based on the variation of the Euribor 3-month index that allows the product to perform like a reviewable rate. Currently at 2.70 %, this variable rate means that only the monthly payment evolves; the term of the mortgage remains unchanged. With a term from 6 years to 25 years, this mortgage offers a large flexibility as you will be able to pay back part or totally after 12 months without any fees.
Moreover, the borrowers who earn at least €50k/year can change to a fix rate at anytime during the length of the mortgage.
To sum up, here are the main points of this 3-month variable rate:
– 2.70% rate
– Based on Euribor 3-month Index variation
– Term from 6 years to 25 years
– Possibility to pay back after 12 months
Here are the main criteria to be eligible for this mortgage:
– Minimum joint income of €50k per year
– Age: from 18 to 80 years old
– Maximum debt ratio: 35%
– Must be a home owner
This brand new product is the perfect combination of flexibility and an attractive rate, a perfect way to finance your estate project.
If you want to receive more information regarding the Foncier 3-month variable rate, do not hesitate to get professional advice from our Mortgage Advisors in order to receive simulations for this mortgage. You can also visit our French Mortgage website for the latest rates available.