Variable Rate Mortgage
Variable rate mortgages have the particularity of starting out at a fixed rate and then becoming variable. The rate is fixed for the first three months. At the end of the first quarter, the rate is reviewed and revised quarterly thereafter. However, the monthly instalments remain the same throughout the remaining term of the loan.
Fact Sheet
- Minimum amount
- 50 000€
- Maximum amount
- No Maximum
- Duration
- From 7 to 20 years
- Loan-to-value
- Up to 85%
- Interest Only available
- Yes
Advantages
- Flexibility of a variable rate mortgage and security at the same time
- You can borrow up to 85 % of the property value
- No penalties in the case of early repayment
- Possibility to switch to a fixed rate at any time
In the event of a mortgage request for the purchase of a second home on the 30/11/2011 for 250 000 Euros for a term of 20 years. Variable rate quarterly reviewed based on the Euribor 3 months. Total cost of the loan : 122 501.60 Euros, overall effective rate at 4.28% per year (life insurance included, without notary costs). Gives monthly repayments for 240 months of 1 552,09 Euros.
Subject to approval, some restrictions apply