06 February 2026 | By John Busby
Feb 26 European Mortgage market update
ECB holds yet again and Swiss rates remain at zero
The execution premium: why “bank-ready” is becoming the new price in European prime property
Traverse Analysis | London | February 2026
In a falling-rate market, buyers compete on timing. In a stable-rate market, they compete on execution.
That is the defining shift we are seeing across European cross-border lending in early 2026. Borrowing remains available and competitive for strong non-resident borrowers — but outcomes are increasingly shaped by practical mechanics: how quickly a lender can underwrite, how cleanly a file can be packaged, and how realistically a completion timeline can be managed in the context of local legal processes.
This analysis sits alongside our February rates bulletin (ECB decision, indicative pricing and lender sentiment). The purpose here is different: to explain why execution is becoming the advantage — and what sophisticated purchasers can do to improve certainty, speed and terms.
If you haven’t read the February bulletin, start here: Traverse Market Update — February 2026.
“The market is still open — but the best outcomes are being won by buyers who treat finance as part of the purchase strategy, not an administrative step,” said John Busby, Head of Sales at Traverse International Finance.
Key takeaways
- In a stable-rate regime, certainty of funding becomes a negotiating advantage.
- The biggest delays are rarely “rate-led” — they’re driven by documentation, lender fit, valuation comfort and timetable.
- Retail and private banks behave like two different underwriting machines — picking the right channel early is often decisive.
- In 2026, “prime” increasingly includes running costs, capex clarity, and energy/upgrade planning, not just address.
Rates snapshot (February 2026): what the market is pricing, and how banks transmit it
Execution becomes more valuable when pricing stops moving in your favour. With the ECB holding steady, the day-to-day story is less about floating costs and more about how fixed-rate funding is being quoted — and how quickly different lender channels pass that through.
(Typical terms for UK- and US-based non-resident borrowers, 60–70% LTV. Indicative only; pricing varies by borrower profile, property type, and structure.)
| Market Indicator | Local long-term fix (illustrative) | Private Bank Rates (illustrative) |
|---|---|---|
| 3-month Euribor: ~1.999% | France: ~4.1% | 3-year fix: ~3.7% |
| 5-year EUR swap: ~2.52% | Italy: ~3.8% | 5-year fix: ~3.7% |
| 15-year EUR swap: ~3.07% | Spain: ~2.8% | Long fix: ~4.25% |
| Typical margin range: ~1.25% | Portugal: ~3.0% | Euro variable: ~3.25% |
| Swiss policy rate: 0.00% | Switzerland: ~1.5% | CHF variable: ~1.2% |
Private-bank solutions are often linked to a wider relationship and may require assets under management (AUM) in the region of 30–50% of the loan principal, particularly where interest-only leverage is requested.
A simple observation: the best rate is often the one you can actually complete with
Across prime European markets, we are increasingly seeing the same pattern repeat: two buyers can pursue the same asset, at similar loan-to-value, and yet end up with very different results. Not because one negotiated harder — but because one was prepared earlier, chose the right lender type for their profile, and structured the file around the realities of cross-border underwriting.
For high-net-worth borrowers, this is particularly relevant because objectives are often more nuanced than a single headline rate. Many are balancing:
- family use and long-term hold periods,
- liquidity preservation across multiple jurisdictions,
- renovation or energy upgrades, and
- certainty around completion dates (school calendars, seasonal windows, relocation timelines).
In that context, “price” increasingly includes speed, certainty and structure. We refer to this as the execution premium: the advantage earned by borrowers who are bank-ready before the property file becomes time-sensitive.
Why execution matters more in 2026 than it did in 2024–25
There are three drivers behind the shift.
1) Rate stability changes behaviour.
When the market is cutting aggressively, borrowers often delay decisions in the hope of better pricing. When rates plateau, that incentive fades. At the same time, lenders stop “competing downhill” and begin competing more selectively — favouring clean assets, clear income narratives and realistic timelines.
2) Underwriting capacity is finite.
Cross-border files are document-heavy by nature. KYC/AML, source of wealth, tax residency, income verification, valuation nuance and notary coordination all create friction. When volumes rise — even modestly — the fastest outcomes tend to go to the best-prepared borrowers.
3) The definition of “prime” is tightening.
Prime is no longer only location. It is increasingly a combination of location, build quality, running cost profile and future-proofing (energy performance, renovation scope, lettability and regulation). This matters because lenders price risk — and in 2026, operational risk and capex uncertainty are being scrutinised more closely than in the immediate post-cut environment.
What “bank-ready” looks like for non-resident buyers
A bank-ready borrower is not simply someone with strong income or assets. It is someone who has reduced ambiguity for the lender. In practice, that means four things.
| Bank-ready item | Why it speeds up outcomes |
|---|---|
| Clear borrower story (who, why, structure) | Reduces underwriting back-and-forth on income, residency, source of wealth and ownership structure. |
| Clean document pack upfront | Turns “missing items” from weeks into days. Documentation delay is the most common avoidable friction. |
| Correct lender channel (retail vs private) | Prevents misalignment (e.g., complex income to a rigid retail process, or flexibility needs to the wrong lender). |
| Timetable aligned to legal process | Avoids “30-day completions” that ignore KYC/AML, valuation scheduling, and notary coordination. |
If you’re buying in France, our guide breaks down the practical mechanics in detail — from documentation requirements to the step-by-step process, including the Compromis de Vente stage where timetable assumptions often fail.
Retail bank vs private bank: two different machines
It is tempting to treat “the bank” as a single market. In reality, retail and private-bank underwriting behave differently — and understanding that difference is often the quickest route to certainty.
Retail banks tend to work best when the purchase is conventional: clear borrower income, standard residential property, amortising structure, and a straightforward legal file. They can be extremely competitive on headline rates, particularly where the bank is defending volumes.
Private banks tend to work best when the objective includes flexibility: interest-only elements, collateral structuring, staged drawdowns for works, or a wider relationship that supports the credit. They may reprice term funding faster — but they can also underwrite in a way that preserves optionality for the borrower.
For readers comparing structures in France specifically, the most relevant sections are: repayment mortgages, interest-only (“in fine”), and private bank structures.
Worked perspective: the cashflow difference that shapes decision-making
The most useful way to understand structure is often to look at cashflow. The numbers below are illustrative, but the dynamic is real.
Example A: Retail bank repayment mortgage
€2,000,000 over 20 years at ~4.00% fixed equates to an approximate monthly payment of ~€12,120.
Example B: Private bank interest-only structure
€2,000,000 interest-only at ~3.60% equates to approximate monthly interest of ~€6,000, with principal remaining outstanding until repaid or refinanced.
Neither is “better” in isolation. The point is that structure changes how a borrower experiences the purchase — and therefore what they optimise for: simplicity, liquidity, optionality, or speed.
If you want the deeper capital-allocation angle, this sits neatly alongside: Locking in low-cost borrowing to keep powder dry for investments.
Country lens: what “execution” looks like in practice
France: Execution is usually won in the “boring” parts: documentation, valuation timing and notary coordination. Start with the France fact sheet Key Numbers and Key Costs & Taxes, then move to the guide sections on documentation and process.
Spain: Competitive retail pricing is often available for straightforward residential purchases, but execution success is typically driven by property eligibility and documentation completeness. Practical links: Spain fact sheet Key Numbers, and the guide sections on documentation and process.
Portugal: Appetite for non-resident lending remains constructive, with private-bank routes often best where income is complex or the client wants structural flexibility. Start with Portugal fact sheet Key Numbers and the guide sections on documentation and process.
Italy: Lender behaviour varies more sharply, so execution is often about correct lender matching early. Useful links: Italy fact sheet Key Numbers, plus the guide section on eligibility & requirements and the step-by-step process.
Switzerland: Outcomes are relationship-led: profile, collateral and documentation quality typically matter more than shopping a headline rate. If needed, see Swiss eligibility criteria and mortgage types.
Monaco: A specialist market where underwriting is bespoke and relationship-driven. For structure context, see Monaco overview and eligibility requirements.
New build and refurbishment: where lender behaviour diverges most
If there is one area where retail and private-bank channels behave most differently, it is in new build, staged works and refurbishment.
Retail lenders can finance off-plan or new build, but often follow tighter disbursement mechanics and documentation rules. File quality matters: contracts, specifications, staged payment calendars and valuation narratives need to be coherent and lender-ready.
Private banks can be better suited where the borrower wants to preserve liquidity during works, where timelines are longer, or where the client’s income profile is complex. Structure can be part of the solution — including staged drawdowns, hybrid amortisation, or collateral arrangements that support the credit while works are completed.
For France, the most practical “next clicks” tend to be: upfront costs and the costs/taxes/legal section, because refurbishment and energy upgrades are usually assessed through the lens of total cost-to-complete.
Case study: using company assets as additional collateral
The story opens
An Irish entrepreneur purchasing in the Alps sought a 70% LTV loan on a property slightly outside the bank’s standard comfort range following a coup de cœur decision, with timing pressure driven by the season and a fixed completion window.
Traverse closes
Traverse structured a 100% solution using a 10-year interest-only mortgage fixed at 3.5% for 50% of the purchase price, with the remaining 50% on a capital-and-interest basis. The client placed close to 50% of the loan amount with the bank as assets under management. A key feature was the ability to use cash held in company accounts to satisfy the AUM requirement via a cross-collateralised agreement.
What to do next: four practical moves that improve outcomes
In a market where execution is the edge, four practical steps tend to deliver the greatest payoff:
- Start lender positioning early — ideally before you are time-constrained by the purchase.
- Package the file once, properly — clarity beats volume, and speed matters.
- Choose the right channel — retail for clean amortising purchases; private bank where flexibility, complexity or structure matters.
- Respect the timetable — especially where notary schedules, compliance and valuations can extend timelines.
The broader point is simple: as Europe moves from a cutting cycle into a more stable rate regime, the most valuable advantage for non-resident purchasers is often not negotiating the last 10 basis points — it is ensuring the lender can deliver on time, on the right structure, with minimal friction.
For the ECB snapshot, indicative pricing and near-term lender sentiment, read our February 2026 Market Update.
For deeper country-specific detail (fact sheets and full guides), our guides hub is here: European Property Finance Guides.
This update is for informational purposes only and does not constitute financial, legal, tax or investment advice. Rates and market conditions are indicative and subject to change. Readers should seek professional guidance before acting on this information.