Interest Only 

 Interest Only Mortgage 

 

Suitable for most types of project, Interest Only mortgages are particularly attractive for those whose net worth is substantial, or for clients who are certain of their ability to pay back the capital when required. No savings plan is required for additional collateral as we will take out a first charge on the French property. For the duration of the loan, you will only be required to pay back the interest and the insurance when applicable. The capital will be paid back in one lump sum at the end (*).
You can take advantage of an Interest Only mortgage with an initial fixed rate period of 3 months, 1 year, 2 years, 5 years or 10 years. 

Plus point

  • You can borrow up to 80% of the property value.
  • The term of this mortgage is from 7 up to 20 years.
  • Early capital repayments are possible at any time.

Advantages:

  •  A mortgage with no underlying savings vehicle as guarantee. This means that  when taking out your mortgage you can keep intact your investments in property, stocks and shares without having to sell or cash in.
  • As you will only be paying the interest and the insurance premiums on your loan each month, your outgoings will be considerably reduced.   
  • A deferred payment period is possible up to 36 months

 

 

BNP Paribas International Buyers - Our Difference:

  •  If you want to reimburse your mortgage partially or in total, before the term is up, as long as the rate is variable, you will not pay any penalties.
  • If at some point you change your mind, whatever the reason, you can always convert your mortgage into a classic fixed rate mortgage for the remaining term.
  • Alternatively, if you prefer, you can convert the mortgage into a repayment mortgage with a classic fixed rate for the remaining term.


What our clients say…

“For some time I’d been interested in buying a holiday place in Biarritz to let, but, at the same time, I was concerned that I would have to sell some of my assets in order to do this. My BNP Paribas International Buyers Personal Mortgage Adviser had the answer, an Interest Only mortgage that would only require a 20% deposit, with no savings vehicle as guarantee.
To my surprise, by paying only interest and insurance each month, my repayments will virtually be covered by the incoming rent. That’s what I call a great investment."

Pete Darcy – Bristol – Biarritz




(*) This means that borrowers need to dispose at that time of sufficient assets to repay the capital in one lump sum.

 YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.
 

BNP Paribas International Buyers is a business line of BNP Paribas Personal Finance.
BNP Paribas Personal Finance - Credit institution – Société Anonyme incorporated under French law with a share capital of 435 903 804 euros - 542 097 902 RCS Paris -
Head office: 1 bd Haussmann, 75009 PARIS Insurance Intermediary (N° ORIAS : 07 023 128) Insurer(s): CNP Assurances and CNP IAM