£500,000 remortgage initially planned to fund Spanish 'golden visa'
Trinity Financial recently helped an architect and IT analyst raise cash to fund their new life overseas. Initially, they wanted to move to Spain but changed their plans after finding an alternative option.
They asked us to check buy-to-let options for their property as they intended to let out their home and purchase a property in Spain. They wanted the money to get a "golden visa" by investing £500,000 into the Spanish property market.
To raise funds, they would need to take their mortgage up to 50% loan-to-value while also moving into the realms of ex-pat buy-to-let territory, which caused issues in affordability, lender choice and rates available to them.
As the clients were still living in the property, a buy-to-let mortgage would not have been allowed until they moved out, and ideally, they needed the funds available first to buy a property.
So how did Trinity Financial help?
Our mortgage adviser recommended a high street lender that would allow 50% of the property value to be on interest-only with the remaining amount on capital repayment, minimising their commitment to the mortgage payments compared to a capital and interest mortgage.
After six months of the remortgage, the bank would potentially allow consent to let if they were moving overseas. The lender even enables existing customers with consent to let meaning to potentially choose new residential mortgage rates if they no longer live in the property and will not need to remortgage to a costly and lower lending ex-pat buy-to-let product in the future.
As they expected, they would one day return to the UK; we secured them the £500,000 to buy a property in Spain and a home to return to if they decided to repatriate.
While we were successful in the fact the clients were offered the amount requested, which would have allowed them to purchase the golden visa, they opted to buy property in Portugal, where the visa requirements and property prices are often cheaper.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation.
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