I am taking a mortgage out in France to buy a property in Chamonix. I have got good quotes from one french bank but am looking for advice as to which one I should accept.
1. First 3 months at 4.95% then the rest of the mortgage at a variable rate based on Euribor 3mth + a margin of 1.6
2. First 12 months at 5.5% then the rest of the mortgage at a variable rate based on Euribor 12mth + a margin of 1.7
In both cases the monthly payment is fixed. It is the term of the mortgage that varies. If the Euribor rate is in my favour then then term will be shorter and if the Euribor is against me then the term is increased to a max 5 years extra. I plan to pay it off earlier and will not incur any penalties if I do this.
See the historical Euribor rates over the last 12 mths here:
http://www.euribor.org/html/download/euribor_2008B.xls
See the historical Euribor rates for 2007 here:
http://www.euribor.org/html/download/euribor_2007B.xls
Really what I am looking for is somebody who has a French/Spanish/European mortgage based on Euribor and what have their experiences been with a mortgage based on this rate?
1. First 3 months at 4.95% then the rest of the mortgage at a variable rate based on Euribor 3mth + a margin of 1.6
2. First 12 months at 5.5% then the rest of the mortgage at a variable rate based on Euribor 12mth + a margin of 1.7
In both cases the monthly payment is fixed. It is the term of the mortgage that varies. If the Euribor rate is in my favour then then term will be shorter and if the Euribor is against me then the term is increased to a max 5 years extra. I plan to pay it off earlier and will not incur any penalties if I do this.
See the historical Euribor rates over the last 12 mths here:
http://www.euribor.org/html/download/euribor_2008B.xls
See the historical Euribor rates for 2007 here:
http://www.euribor.org/html/download/euribor_2007B.xls
Really what I am looking for is somebody who has a French/Spanish/European mortgage based on Euribor and what have their experiences been with a mortgage based on this rate?