Remortgage in France using AUM

11th October 2017

Sophia Kazmi

Remortgage in France using AUM
Sophia Kazmi

Sophia Kazmi

I recently assisted an Asian client who was looking to remortgage in France. My client’s property was valued at €2million, and he had an outstanding loan of €1million.

He needed to refinance because his existing facility was due to expire at the end of this year. His current loan was on an interest-only repayment basis, but his lender intended to switch this over to capital repayment upon expiry. This would have significantly raised my client’s monthly payments. He hoped to stick to an interest-only loan, as he planned to sell the property in a few years’ time as an exit strategy.

He had purchased the property over a decade ago, in a very different lending climate. Historically, banks were more lenient and did not require assets under management (AUM). European interest rates are now in negative figures, however, so continental lenders will generally require AUM as a condition of lending. My client was struggling to come to terms with this, so I needed to manage his expectations in this regard.

It can also be challenging to arrange finance for non-European clients. I, therefore, presented a range of potential solutions, to highlight how placing AUM would improve his options.


One solution would be to switch to a capital repayment facility, for which we would be able to negotiate favourable rates due to our extensive lender network. We could potentially arrange a facility with no AUM, at a variable rate of 1.35% on a 20-year term. However, I explained if he were willing to place AUM, we could arrange a facility with 70% on an interest-only repayment basis, again at a favourable rate.

This case highlight’s a key strength of Enness International. Our strong lender relationships and understanding of the market mean we are able to explore a full range of options, using our flexible and creative outlook to negotiate a desirable outcome for our clients.

Call us +44 (0) 203 758 9393 or submit your details and a broker will get in touch.

Enness Limited needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.

The Global High  Net Worth  Mortgage Guide

The Global High Net Worth Mortgage Guide

Are you considering buying a high-value international property? 

Our handy Global High Net Worth Mortgage Guide explores the world of international mortgage finance in prime property markets around the world. 

Whatever your property financing requirements, we have a specialist team in place dedicated to finding the best and most efficient solution. 

Let us guide you through the complex world of mortgages.  

Download Pdf