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Repayment mortgages

Interest-only mortgages

Hybrid mortgages

This is the most common type of French mortgage. With a repayment mortgage you repay the interest owed and a portion of the capital each month.A large percentage of the monthly payment is interest in the beginning. However, towards the end of the loan you are paying less interest and mainly the capital.

French repayment mortgages can be:

Fixed for up to 25 years
Variable up to 35 years
• Variable loans are based on the Euribor (Eurobank inter offered rate) + a margin.
Up to 100%

Interest-only mortgages are popular with investors as they are cheaper on a monthly basis. You only pay the interest on the capital so the amount owed does not decrease. The exit strategy is to sell the investment, or to sell another investment to pay off the loan at the end.

French interest-only mortgages can be:

Fixed up to 20 years
Variable up to 20 years
Variable loans are based on the Euribor (Eurobank inter offered rate) + a margin
• Up to 100% for a leaseback or 80% for a buy-to-let or second home.

A hybrid mortgage combines an interest-only period followed by a repayment period. These are also popular with investors as they are cheaper in the early years.

French hybrid mortgages can be:

Variable up to 30 years
• Variable mortgages are based on the Euribor (Eurobank inter offered rate) + a margin
• Up to 100% for leaseback or 80% for a buy-to-let or second home.

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