High LTV French Mortgage for UK Resident
25th September 2020
Key facts
Property purchase
- €3,500,000 property value
- €3,150,000 mortgage amount (90% Loan to value)
- €1,000,000 Assets under management
- UK resident US national buying a new home in France
- 1.81% fixed for 10 years, Interest only.
- 0.5% lenders fee
Our client was introduced to us via a UK private bank mortgage lender with whom we have a very strong relationship with (in fact, 30% of our clients are introduced to us via their professional advisers).
The client is a US national, currently living and working in the UK but planning to relocate to Paris with his family. He is employed, income made up of salary and bonus earned in the UK but of course subject to US tax.
The French property market is very popular with American buyers, however, there is a severe shortage of local lenders who will accommodate US individuals from a mortgage point of view.
We secured these terms from a European bank with all the licenses and appetite to assist American borrowers.
The client originally preferred a dry mortgage (i.e with no AUM placed with the bank as part of the transaction) however, the very High Loan to Value, positive effect on wealth tax, and long term fixed rate made this solution the most advantageous. Learn more about French mortgages for non residents.
We started and completed this transaction in 2020 and managed to complete all the steps even with the Covid-19 based restrictions and barriers in place thanks to the dedication and commitment of the private bank.
