Mortgage in France > Mortgage offers > Interest-only
Low monthly mortgage payments during the 1st phase of your mortgage
With Flexicredit, GE Money Bank’s Interest-only French mortgage, you only pay the interest on your mortgage during the first period (up to 10 years).
Benefits of an Interest-only mortgage
· Tailor-made solution which combines the advantages of an interest-only period followed by a capital repayment period.
· Take the benefit of a monthly instalment reduced to an interest-only level during the first phase.
· Manage your Interest-only mortgage with several options.
With the Interest-only mortgage there are additional benefits to give you extra flexibility. After the twelve first months, at any time and without any fee, you have the possibility during the 1st phase :
- to make payments toward principal,
- to repay partially or totally the outstanding capital,
- to anticipate the amortization phase.
What is an interest-only mortgage?
Our FLEXICREDIT program is an original financing solution split into 2 phases:
· A 1st phase with an interest-only payment. Your monthly instalment only includes interest and optional term insurance premium. Therefore, monthly payments are lower than those that would be paid with a conventional loan.
· A 2nd phase during which you pay back both capital and interest (repayment mortgage).
What can I use a FLEXICREDIT programme for?
The FLEXICREDIT programme, GE Money Bank offers you, can be used for:
• buying a home,
• investing in a buy-to-let (existing, off plan, house construction),
• refinancing your mortgage loan,
• or realizing home improvements.
Testimony: Interest-only mortgage
Kathleen & Gordon, Bristol/Provence:
“How can we buy this fantastic house, manage our budget, and arrange our own repayment method at the same time?
We needed a place to escape our stressful life. The best option was beautiful Provence. As we still have a mortgage on our Bristol home, we were looking for an interest-only first period. In 5 years when our main home will be paid, it will be time to switch to the amortization period of our Flexicredit mortgage.”
Financial example of a FLEXICREDIT mortgage
Example: For a Flexicredit loan of €200,000, on a 20-year total term:
- during the 1st ten years, rate being fixed for the 1st twelve months and thereafter indexed to the 1-month Euribor plus the margin (this margin is specified in your contract).
- during the repayment phase of 10 years, the interest rate is monthly variable and indexed to the 1-month Euribor plus the margin.
Initial forecasted compound APR of 3,35%, total provisional cost of credit is €105,401.80.
Subject to study/analyse and acceptance by the lender : GE Money Bank – Partnership Limited by Shares with capital of €594.078.024 - Corporate Headquarters: Tour Europlaza – 20 avenue André-Prothin – 92063 Paris La Défense Cedex - FRANCE – Registered at the Nanterre Corporate and Trade Registry under # 784 393 340. If the purchase of the property is subject to a loan and this one is declined, the vendor must reimburse all payments already made by the buyer. Upon receipt of a loan offer, there is a mandatory 10 day cooling-off period for the buyer. No payment whatsoever can be required from a private individual before one or more loans are granted.
If Euro is not your National currency, the equivalent in your National currency of your liability under a Euro mortgage may be increased by exchange rate movements. Loans are secured by a mortgage on your property in France. Life Assurance will also be required. All Loans are Subject to Status and Valuation and are not Available to Persons Under the Age of 18. Written Quotations are Available upon Request.
(*) IMPORTANT : Financial terms and examples are calculated with a minimum deposit of 20% of the purchase price and valid as of 20/07/2010. They are subject to change without notice depending on market conditions. Total provisional costs of credit include arrangement fee, but exclude legal and notary fees, optional life insurance premiums, and introducer’s fees. In case of intervention of an introducer, his fees will be included in the total provisional costs.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.