This is the first time that this type of product has been made available to the wider home-owning communities in France, Spain and Portugal.
Miranda John, Director of PropertyFinance4Less said: “Equity Release is currently almost unheard of in France, Spain and Portugal. What is surprising is that most people don’t realise that the only effective route to accessing equity in a residential property once the initial purchase is complete has been to sell-up. Research conducted by our currency trading division, Currencies4Less, found that a staggering two-thirds of those buying foreign property actually intended to access the equity at a later date, simply believing that a product exists when in fact it does not. Having identified this gap in the market, we set about finding a solution.”
Through PropertyFinance4Less’s unique alliances with leading local lenders, International Equity Release also allows customers to take advantage of low European mortgage rates – the base rate in Europe (Euribor) is currently around 2% compared to the current UK base rate of 4.75%. This translates to an actual interest rate for International Equity Release of 3.86% in Spain, 3.92% in France and 4.05% in Portugal, all of which are well below interest rates currently available in the UK.
If the funds are being repatriated, Currencies4Less will provide a currency account with no additional paperwork or cost.
In addition, where future mortgage payments originate from the UK, PropertyFinance4Less can arrange an Overseas Payment Plan. OPP limits exposure of monthly payments to exchange rate fluctuations by fixing the exchange rate forward for a year.
Further key features of International Equity Release:
- Maximum loan to value (LTV) is 60% in France, 40% in Spain and 70% in Portugal.
- Minimum loan term is seven years and the maximum is 20 years
- Minimum loan amount is €150,000 in France and €100,000 in Spain and Portugal
- Properties must be residential and unencumbered (with the exception of France).
