An Austrian national living between Germany and the UK, recently approached me to help release equity on his £2.2million family home in Cambridge.
My client, who also owns several million euros worth of property on the continent, originally came into contact with Enness’ online presence, after searching for a mortgage broker proficient in securing flexible mortgages. Unhappy with terms he had already secured, my client was looking for a flexible facility wherein he could draw down funds as and when he wished, to enable the completion of some home improvements.
The majority of my client’s income consisted of euros, derived from property he owned in Germany. This provided a stumbling block, as although he also earned in sterling too, his sizeable German property income was all held in German banks.
Therefore, I was presented with two key obstacles. Firstly, I needed to find a lender who understood how banks in Germany worked. Secondly, I knew the level of flexibility my client was looking for was rather bespoke, and not offered by a vast number of lenders.
Taking the bespoke angle of the mortgage into consideration, I approached the private bank market, as these banks are able to offer more flexible and tailored facilities, in comparison to the set products of high street banks. Further, private banks tend to understand and accept overseas income more readily – an extremely crucial factor in my client’s application.
I recommended a private bank with whom Enness works closely with, who have a dedicated department catering specifically to international clients. This lender was adept in structuring bespoke mortgages for UK resident, non-UK domiciled clients such as mine. This lender also offered an ‘overdraft’ facility loan, by which my client could secure ‘x’ amount against his home in Cambridge, but only draw down as much of this as they wanted at any given time. In addition, the bank would also allow my client to fix in a certain amount, and then leave the remaining balance on a variable rate to make the loan as low cost as possible for my client.
I managed to negotiate a bespoke product for my client whereby £500,000 was fixed in for 1.99% on a two-year fixed rate, and a further £500,000 was left on an ‘overdraft’ facility, where my client would be able to draw down funds when required. The second part of this product was agreed at a variable rate of 3.25%. This loan was secured for a 1% arrangement fee, on an interest only basis, for a period of 20 years for my very happy client.