The mortgage will be targeted at high net worth individuals with the aim of assisting them in the management of their cash flow, as borrowers will be able to repay the loan at maturity from assets.
Simon Perks, deputy general manager of Santander Totta’s London branch, said that this type of cash flow management was in high demand and, for the most part, five-year term interest only loans are available only within the UK.
Perks said: “High net worth individuals are on the constant look out to find the best way to manage their cash. Santander Totta’s interest only mortgage solution is more desirable as it keeps monthly payments to a minimum and gives buyers the opportunity to use their cash in more efficient and interesting ways.”
The mortgage can be arranged in sterling, euros, Swiss franc and US dollars, and Santander Totta will consider lending up to 75 per cent of the value of the property.
Melanie Bien, associate director for Savills, said: “Portugal is a very popular country to buy in and high net worth individuals can pick up a property for less than here and their money goes further. Five-year interest only is good and many high net worth people would be interested in it, as it provides more flexibility.”
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