The French remortgage or refinance market is not as dynamic and active as it is other countries. This is mostly because French lenders use mortgages to attract new customers who are then cross-sold other banking products. As such there has traditionally been a status quo amongst French high street lenders not to promote remortgage propositions.
This does not mean that customers cannot benefit from re-financing their existing French mortgage loan. For example, a customer who took out €300,000 French mortgage with a 20 year term at a rate of 4.80% in June 2007 would save in excess of €12,500 net of costs if he remortgaged at a rate of 3.20% in July 2014 without increasing the loan duration !
Fees associated with a French remortgage include :
- Early repayment fees on the existing French mortgage
- Bank and broker admin fees
- Conveyancing fees
All fees can be financed and should be included when re-mortgage options are being explored.
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