| Many kinds of loans are available to the Non-Resident | | | | French Interest Only Loan |
| Purchasers in France. Some of them are: | | | | It is a hybrid arrangement of loan where the interest |
| French Fixed Interest Rate Loans | | | | may be limited to the initial 5 years followed by a |
| The interest rate is fixed at the starting of the loan for | | | | capital and interest period of 20 years on a standard |
| the duration of mortgage period of 5 to 25 years. The | | | | 25 year mortgage (or 10 years interest followed by 15 |
| positive side is that the borrower knows the amount of | | | | years of capital and interest repayment). |
| monthly expenses he has to bear on his french | | | | French Equity Release Schemes |
| mortgage. However on the negative side, the interest | | | | It is possible to transact french equity release |
| rates are higher than the variable rate loan which could | | | | mortgages for any purpose with a no. of French |
| be obtained in the same market place and it carries a | | | | Banks up to 80% of the value of the property. |
| penalty payment of 3% of the capital re-imbursed | | | | French Leaseback Mortgages |
| whether the borrower chooses to pay off his load in | | | | A real leaseback scheme in France or “Credit |
| all or part before the end of the loan period. | | | | Bail” is development if properties in a complex, the |
| French Capital and Interest Variable Rate Loans | | | | letting out of which is managed by a Professional |
| They can be obtained at a cheaper rate of interest | | | | management company set up to manage whole |
| than the fixed rate schemes and can be generally | | | | complex at the time it is built. |
| cleared in all or part before the end of the loan period | | | | The properties are generally let out over a 9 year |
| without any penalty. However some variable rate | | | | period with a limit of how much time the owner may |
| loans in France do carry early redemption penalties. | | | | use the property for his own use for not more than 4 |
| Instead of these types of loans with penalty, people | | | | weeks a year. The rental income is usually guaranteed |
| prefer Capped rate mortgages where the amount of | | | | for 9 years period at the outset of the value of the |
| interest rate can move up or down, capped at either | | | | property purchased. |
| 1% or 2% margin giving stability to payments. | | | | French Euroswitch Mortgages |
| French Fixed Payment Loans | | | | It is for the borrowers who have an unencumbered |
| In these types of loans the monthly payment is fixed | | | | property in France whilst paying a mortgage on their |
| at the outset of the loan though the interest rate | | | | own property at home at a more costly rate of |
| varies. In case the interest rate moves up or down, the | | | | interest than they could obtain in France. |
| bank increases or decreases the term of the | | | | Other types of loans include Bridging Loans in France |
| mortgage instead of changing the monthly payment. | | | | and French Land Purchase Loans to buy and build |
| There is no penalty on early redemption in part or all. | | | | houses. |