100% LTV interest-only euro mortgage secured on a GBP interest-bearing account

September 2018 – Mr and Mrs L. 63 and 71 years old.

English couple residing in the UK.

Client requirements:

Our clients contacted us as they were in the process of purchasing a holiday home in Antibes, on the French Riviera. Although they could afford to pay the full price without resorting to mortgage finance, our clients were reluctant to converting a significant proportion of their savings, held in GBP, into Euros due to the unfavourable exchange rate.

Bluesky Finance solution:

We arranged a euro denominated mortgage for an amount of €1.2 million so as to cover the purchase price and legal fees. The mortgage came in the form of an interest-only loan with a term of 7 years. Life insurance was kept fully optional.

The mortgage loan was secured against the French villa and against an interest-bearing saving account denominated in GBP.

Loan amount : €1.2 million

Interest rate : 2.2% (floating)

No early repayment fees

Life insurance fully optional