5. Types of Mortgage Loans in France

  1. Capital and Interest Repayment
  2. Fixed or Variable Rate Mortgage?
  3. Bridging Finance
  4. Hybrid Mortgages

5.4. Hybrid Mortgage - Prêt Multipalier

This is a mortgage that is only going to be of interest to existing residents of France.

An hybrid mortgage is called a prêt multipalier.

One of the classic features of the French mortgage market is the extent to which the purchase or construction of a property may be funded by a principal loan, plus one more regulated mortgages, e.g. prêt à taux zéro, prêt épargne logement and prêt principal.

The problem that often arises is that, because of the conditions imposed on the subsidised mortgages, the mortgages are of different duration. This results in variable monthly payments over time, with initial higher payments in the early years.

The prêt multipalier is designed to even out monthly payments over the duration of the mortgage so that family finances can be better managed.

Accordingly, in the earlier years when you have in place other mortgages, the repayments on the prêt multipalier itself will be low, but will increase as other mortgages are repaid.

It is a mortgage with different levels of repayment depending on your other debts and capacity to meet these debts.

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