€5M Interest-Only Private Bank Mortgage for French Alps Chalet Apartments
Private bank mortgages can allow international investors to use eligible stocks and bonds as part of a property financing arrangement without selling their entire investment portfolio. Enness Global obtained two indicative proposals of approximately €5 million for an investor purchasing two chalet apartments in the French Alps. Both proposals were interest-only and required around €2.5 million of qualifying portfolio assets to be placed with the lender. The proposals offered different loan terms of five and seven years, subject to lender due diligence, asset eligibility and final approval. Completion of the purchase has not been confirmed.
Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it. With an interest-only mortgage, the amount borrowed is not repaid during the term and you must have a credible plan to repay the capital at the end. Investments held by a lender as security can fall in value, and you could lose them. The lender may also require additional assets or cash if the portfolio falls in value. Lending on property outside the UK may not be regulated by the FCA, and UK regulatory protections may not apply. All lending is subject to status, valuation and lender criteria.
Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it. With an interest-only mortgage, the amount borrowed is not repaid during the term. Investments held by a lender as security can fall in value, and you could lose them. Lending on property outside the UK may not be regulated by the FCA.
Some private banks will recognise a portfolio of stocks and bonds as part of a mortgage, so the investments don't all need to be sold. In this case, Enness Global obtained two indicative proposals of circa €5m, interest-only, for an international investor buying two French Alps chalet apartments, each with part of the portfolio placed with the lender.
Key Terms
| Term | In Plain English | What Clients Call It |
|---|---|---|
| Assets under management (AUM) | Investments the client moves to the lending bank as part of the relationship | “AUM requirement”, “bringing assets over” |
| Credit weighting | The share of an investment's value a bank will count, after a discount for risk | “Lending value”, “haircut” |
| Marketable securities | Listed stocks and bonds that can be sold on an exchange | “My portfolio”, “stocks and bonds” |
| Interest-only | Monthly payments cover interest; the loan is repaid at the end of the term | “IO” |
| Indicative proposal | A lender's outline terms before full underwriting; not a formal offer | “Terms in principle”, “heads of terms” |
What Did the Client Need?
An international client was referred to Enness to finance the purchase of two luxury chalet apartments in the French Alps. The combined price was around €9m, and the client was looking for around €5m of mortgage finance. Alpine property remains in demand. Older apartments in Haute-Savoie sold at a median of €4,380 per square metre in the 12 months to May 2026, up 1.5% on the year, according to Notaires de France.
The client held significant investments in stocks and bonds. They wanted to use that wealth as part of the financing, while keeping liquidity and avoiding selling investments unnecessarily. If you’re interested in finding out more about the process, our guide to buying and financing luxury property in France covers the wider steps.
Why Were Stocks and Bonds a Problem for Lenders?
Most of the client's assets were in marketable securities rather than cash. Many private banks will only recognise a limited range of assets, or apply a heavy discount to securities, when they assess a loan. That narrowed the field to lenders experienced with international clients and more flexible about investment portfolios.
How Did Enness Approach the Lenders?
Enness went to specialist private bank mortgage lenders with dedicated international lending teams. Both were able to consider the client's wider portfolio, subject to their own due diligence, asset eligibility and lending criteria. Two indicative proposals followed:
- Proposal one: Around €5m, interest-only, over seven years, with around €2.5m of the client's portfolio placed with the lender, subject to the lender's credit weighting.
- Proposal two: Around €5m, interest-only, over five years, again with around €2.5m of qualifying assets placed with the lender as part of the wider banking relationship.
What Did the Case Show?
Two competing proposals gave the client a choice of term and structure. The case shows that an international portfolio does not always need to be turned into cash before a private bank will take it into account. How assets are treated depends on the lender and the client's circumstances, and some lenders will not recognise them at all.
Where a bank requires assets to be placed with it, see mortgages without assets under management for the alternatives. These were indicative proposals, not formal offers.
Risks and What Could Go Differently
These were indicative proposals, and terms can change or be withdrawn at underwriting.
- Placed assets can fall in value. If the portfolio held with the lender falls, the bank may ask for more assets or cash or reduce the loan. Assets held as security could be lost if the loan is not repaid.
- Credit weighting reduces what counts. Banks typically count only part of a security's value, and some assets may not be eligible at all.
- Interest-only needs a repayment plan. The loan is not repaid during the term. The client needs to repay or refinance at the end, which is not guaranteed.
- Exchange rate risk. If the client's income or assets are in another currency, movements against the euro can increase the cost of repayments.
- Overseas lending protections. A loan on French property may not be regulated by the FCA, and UK protections, including access to the Financial Ombudsman Service, may not apply.
- The property is security for the loan. Property values can fall, and resort property can be illiquid and slow to sell.
All lending is subject to status, the lender's criteria and a valuation. Terms are specific to each case.
Important Information
Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
With an interest-only mortgage, the amount borrowed is not repaid during the term. You must have a separate, credible plan to repay the loan at the end of the term.
Where investments are held by a lender as security, their value can fall and you could lose the assets used as collateral. You may be asked to provide more assets or cash if their value falls.
Borrowing in a currency different from your income exposes you to exchange rate risk, which can increase the cost of repayments.
Borrowing on property outside the UK may not be regulated by the Financial Conduct Authority, and UK regulatory protections, including access to the Financial Ombudsman Service, may not apply.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Past results are not a reliable indicator of future outcomes.
Enness does not provide investment, tax or legal advice. Enness Global is a trading name of Enness Limited, a credit broker and protection intermediary, not a lender. Authorised and regulated by the Financial Conduct Authority (FCA registration number 565120).
Related Case Studies
See how Enness structures finance for offshore, commercial and high-value transactions.
View all
Frequently asked questions
Expert answers from our specialist brokers to the questions we are asked most often.
Let's talk nowCan You Use Stocks and Bonds to Get a Mortgage Without Selling Them?
Some private banks will take a portfolio of stocks and bonds into account, often by asking for part of it to be placed with them. They count only a share of its value after a credit weighting. Enness Global approaches lenders that recognise securities, so a client may not need to sell investments to buy. Lending is subject to status.
