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Case Profile
Our client was looking to purchase a holiday home in Ibiza. However, due to his employment status, finding a foreign currency mortgage was a challenge.
Our client had recently left his job and although the employer had agreed to pay him his usual salary for the next 12 months, including his bonus, he was effectively unemployed. For this reason most lenders were only willing to give him a 12 month mortgage term, as his regular income would cease after a year.
Solution
We were able to place a million pound plus mortgage for the client through one of our private banking contacts in Spain. A bespoke deal was created for the client after we presented the client’s case to the lender. We were successful in obtaining a formal credit sanction for the full loan amount.
The lender took a view on the client’s employment situation based on his historical income and his ability to earn income in the future, given his experience. In addition, the client has considerable equity tied up in his main residence in London, as well as a large investment portfolio.
He will use the yield from his investment portfolio to service the interest of the loan. He was also able to transfer assets to the value of €500,000, which were held on account with the bank for additional comfort. These were, however, not pledged to the bank and our client has full access to these at any time.
Deal Highlights
| Loan amount: | €1,610,000 |
| Rate: | 2% fixed rate for whole term of 15 years |
| LTV: | 70% |
| APR: | Overall cost for comparison 2.5% APR representative variable |
| Term: | 15 years |
| Type: | Capital and Interest Repayment |
| Loan purpose: | Purchase |
| Lender’s arrangement fee: | 1.5% of loan amount |
| Early repayment charges: | 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. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Overall cost for comparison 2.5% APR representative variable based on 15 years at 2%. Lender’s arrangement fee of 1.5% of the loan amount. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
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.
