If you are looking for a property there are so many ways of finance available to you from straight mortgages to endowments to a Stonehaven Interest Select plan so it can be pretty difficult deciding what type of mortgage to go for.
If, however, you are looking for property in France and intend to rent out your property – that is, use it purely for an investment – then there is another type of mortgage you can consider called an in fine mortgage. This might be suitable if you have a substantial amount of money to put down on the property and just need a top up mortgage.
Let us say the property costs two hundred thousand. You lodge your capital, say one hundred thousand, with the bank. They then loan you the whole two hundred thousand and you pay off interest only for the period of the loan, say fifteen years.
As this is an investment transaction, the rent that you are getting from the apartment each month covers the interest payments, costing you nothing.
Meanwhile the capital that you have lodged accrues with the interest until finally, at the end of the mortgage, you have enough to pay off the loan. It may cost more in interest than a standard mortgage but can be more suitable for some people who are looking long term.
