At MillionPlus Private Finance our clients regularly approach us to ask ‘How can I get a large second mortgage to buy a second home?’ Buying a holiday home, whether at home or overseas, often requires getting a large second mortgage or a multi-million foreign currency mortgage. We regularly arrange million plus mortgages on holiday homes in a variety of foreign currencies through our international network of lenders.
One in ten British adults is now owns a second home; that’s 5.2 million people in the UK and just 3% are buying a second home to rent it out as a holiday let.
Our team is regularly approached by clients looking for a million plus second property mortgage, either to buy a holiday let or to buy a holiday home as an investment.
Often, these large second residential mortgages can be to buy property overseas and therefore need to be large foreign currency mortgages, most commonly million plus euro mortgages or multi-million US dollar mortgages.
Recently, we were approached by a client looking for overseas foreign currency financing to buy a million plus holiday home in Ibiza. He was a multi-million pound property investor with a large portfolio.
However, his employment status meant that securing foreign currency lending was a challenge.
Our client had recently left his job but had been placed on gardening leave, so would receive his usual salary and bonus for the next 12 months.
On paper, this meant that he was unemployed and looking to secure a multi-million pound mortgage. His status meant that most lenders would only be willing to offer 12 month mortgage terms, as his income was only secured for a year.
Want to find out more? To discuss your expat mortgage or remortgage requirements, contact the MillionPlus Private Finance team on +44 207 519 4950 email us at info@millionplus.com or complete our enquiry form.
Solution
The MillionPlus Private Finance team secured multi-million euro funding on the foreign currency mortgage through a private banking contact in Spain.
The private bank created a bespoke offer, tailored to the client’s requirements and covering the full million plus euro loan amount.
The lender took a view on the client’s current employment situation and based its offer on his considerable experience and the prospect of his future earnings.
The lender took into account our client’s real estate portfolio and allowed the income from his investment portfolio to service the interest of the loan.
Our client transferred assets to the value of €500,000 to the private bank to create a greater level of comfort and confidence in the deal. However, these funds are accessible at any time and are not pledged to the bank.
Deal Highlights
Loan amount:
LTV:
Term:
Type:
Loan purpose:
Lender’s arrangement fee:
Early repayment charges:
£1,610,000
70%
15 years
Capital and Interest Repayment
Purchase
1.5% of loan amount
No penalty for full or part repayment at any time throughout the loan including during the fixed rate period
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. This document may not contain all the information needed for customers to make a decision and they should seek advice.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
Past performance is not a guide to future performance. The value of property investments and income from them can go down as well as up and investors may not get back the amount originally invested.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.
The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice.
We suggest that you seek legal advice and advice on tax issues before purchasing a property to let.
