The client was purchasing a property in the Carribbean for approx. ?300,000 off-plan. Completion was due 18 months after he put down the deposit of ?97,500. During the build period the developer will his monthly payments on any finance he raised to pay for the deposit.
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At searchandapply.co.uk we arranged a home loan for the full ?97,500 allowing the client to purchase the property within the 28 day deadline. The developer is now paying his monthly payments of ?800 and on completion a US Dollar mortgage will be arranged locally on the increased value of the property which will allow the client to pay off th home loan in the UK.
The benefits of raising the money using a home loan:
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The client was able to raise the funds quickly, without having to pay penalties on his existing mortgage for remortgaging away from his current lender.
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The developer only has to pay 18 months of ?800 rather than funding the ?97,500 themselves, which meant their costs for the development are significantly lower, allowing them to pass on their savings to the client, by way of discount on the purchase price.
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On completion of the overseas mortgage, the client can repay the home loan, with very little penalties.
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There were no upfront fees at all on the home loan which meant the client was able to purchase the property without spending a single penny of his own money until completion of the property.
If you are looking to invest in property abroad a home loan is a great way of raising money on the equity in your home short term. It is competitive, easy to arrange and with the new consumer credit legislation lenders are only allowed to charge you 1 months notice and 1 months interest if you wish to repay the loan early.
If you are interested in arranging finance for an overseas property, talk to one of our experienced loan advisers and obtain a loan quote today>>> Home Loan Search
This Secured Loan article was researched and written by Gary Taylor, a representative of Rate Hunter Limited. This article is or information purposes only, it does not constitute advice and should not be relied upon as such.
