How can we best use our equity to buy a house in France?

Posted on 2 January 2013 by Debbie


How can we best use our equity to buy a house in France?

Myself and my hubby own our house outright with no outstanding mortgage. It is valued at around £200k. We would like to know how to use some of the value of our house say £60k to purchase a house in France without having a monthly re-payment?

Debbie,

Unless you qualify for equity release (minimum age is 55), then lenders will require a monthly mortgage payment from you. The only other type of loan that wouldn't require a monthly comittment would be a bridging loan, where the rates are significantly higher than standard residential mortgages. Also the term is much shorter, typically 12 months, at which point the loan would need to be repaid.

The loan to value (LTV) is very small (30%), and would mean that (subject to your income, credit history, etc..) you should qualify for the most competitive rates in the market. Also to look at keeping the payments as low as possible, it may be appropriate to look at doing the loan on an interest only basis.

If you'd like to discuss your options in more detail, then please let me know, and I'll arrange for you to speak to one of our consultants.

Regards,

Simon

simon.collins@johncharcol.co.uk

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