Remortgaging at a better rate?

Friday, December 26, 2008

Remortgaging at a better rate?

Ever thought of remortgaging at a better rate?
Ever thought of releasing equity from your French home?

Validus Financial Services (part of the VEF Group) have some interesting news for you. Their phones lines have been buzzing over the past few days with clients anxious to take advantage of the new, low interest rates in France. Maybe its time you thought about it too!

Equity Release:
Maximum loan to value is 80%. All loans will be subject to a valuation of the property.
Rates are as as low as 4.7% (fixed for 3 or 20 years on repayment mortgages) or 5.25% for interest only.

The lender will need to know what the funds from the equity release will be used for. They prefer:

•Renovations
•Donations
•Renovations
•Inheritance taxes
•Repurchase of shares
•Financing of other projects (boats, other properties, planes etc..)
•Cross border investments

This form of mortgage is best suited to owners of second homes/holiday homes/buy to lets in France. France hasn’t yet ‘got its head around; equity release on principal residences.

Just think: as you will be receiving the loan in euros and can avoid any exchange loss by taking advantage of some of those bargain properties on offer in France at the moment.

Remortgages:
You can remortgage your existing property in France and you can even apply for a larger amount (for example to cover renovation costs), subject to status. 70-80% LTV is the maximum loan amount possible and interest rates are the same as the equity release mortgages.

Although there are usually notaire fees payable on securing a new mortgage on a property, in many cases, the charges can be absorbed into the loan itself.

source
Posted by JanMck Hilado at 9:04 PM
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