Mortgage in France > Mortgage options > Interest-only
Pay only the interest for up to 10 years with FLEXICREDIT, GE Money Bank’s interest-only mortgage.
Benefits
- Increase affordability with reduced monthly payments during the interest-only period.
- Maximise investment ability to buy a bigger home.
- Manage your Interest-only mortgage with options like repayments of principal.
- Pre-pay your mortgage with no redemption penalty anytime during the interest-only period, either partially or totally.
- Decide when you want to make principal and interest repayments.
- Benefit from higher tax reductions (for taxpayers in France).
What is an Interest-only mortgage?
FLEXICREDIT is a mortgage divided into 2 phases:
- The 1st phase is an interest-only loan: it allows you to pay only the loan's interest for a specified period (from 5 to 10 years).
- The 2nd phase is a repayment loan: anytime during the 1st phase or automatically when it ends, you can switch to a repayment loan to pay your loan off at maturity.
With the Interest-only mortgage there are additional benefits to give you extra flexibility:
- You can include payments of the principal to your interest-only payments anytime you want and for as long as you want.
- You can make early repayments towards the principal with no penalty, either partially or totally.
What can I use a FLEXICREDIT program for?
How does FLEXICREDIT work?
Example: For an amount borrowed of 200,000 € with a personal contribution of 20% of the purchase price and an initial maturity of 30 years (with the following breakdown: Interest-Only period of 10 years followed by a repayment loan of 20 years). During the first 10 year Interest-Only period, the interest rate is fixed for the initial 12 months and then indexed to 1 month EURIBOR. Your first 12 payments amount to 823.33€ (base on a 31 day month). During the 10 year repayment period which follows, the interest rate is indexed to 1 month EURIBOR. With an initial APR at 4.95%, the total cost of your loan at maturity will be 213,334.00€ (including administration fee but excluding legal fees, stamp duty and optional term life insurance). The above example, figures, terms and conditions are for information only and are subject to change according to market conditions. Important information: according to articles L 312-1 and seq. of the French Consumer Act, the purchase of a property with a mortgage loan is subject to the lender’s acceptance. If the loan is declined all payments made, including any deposit to secure the home purchase, must be fully reimbursed to the buyer. If the loan is accepted with a loan offer issued, the borrower has a compulsory 10 day cooling-off period before this loan offer can be accepted. 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. 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 on property outside the UK. All loans are subject to status and valuation and are not available to persons under the age of 18.
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