Interest Only Mortgage in France

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Interest Only Mortgage: How Does it Work?

Interest only mortgages allows borrowers to pay only the interest for a certain period, typically the first few years, resulting in lower initial monthly payments.

However, once this period ends, borrowers must start paying both the principal and interest, potentially leading to higher payments. It can be beneficial for those expecting higher future income or planning to sell/refinance before the interest-only period ends.

Consider the terms and risks carefully before opting for this type of mortgage.

Interest Only Mortgage in France

You are able to get an interest only mortgage in France. They are not common, as most French people prefer capital repayment, but it is definitely possible to get a mortgage that is either partially or fully interest only.

Typically interest only mortgages have terms of 14 – 15 years with French banks, and 5 – 10 years with the international private banks. Loan to values can be as much as 75% of the purchase price.

Depending on the value of the property, there could potentially be some tax advantages in having an interest only mortgage, in relation to the French Wealth Tax.

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