Where can you buy international property and how much can you borrow?

Are you considering buying an international property? Finding a property is easy enough—but the next step, international property finance—is considerably trickier to arrange. From language barriers to different lender attitudes, arranging a large loan abroad generally requires the help of a good international mortgage broker.

But what and where could you borrow?

Our office in Monaco means we have a particular expertise in Monaco and the French Riviera.

All of the Enness International brokers are fluent in French, and have built up excellent relationships with not only the biggest private banks, but also lesser-known local lenders that clients would individually struggle to approach. As such, we are able to negotiate for exceptional rates in France.

However, clients should be aware that a mortgage in France generally requires assets under management. For example, we could feasibly look to finance property at 100% loan to value across areas such as Paris and the French Alps, at rates of between 1.4-1.45%, but this would require assets under management.

We recently arranged a loan in Italy for two clients looking to purchase a holiday home, on a capital repayment basis, at a quarterly interest rate of 3-month LIBOR + 2.25%. There are fewer lenders who will lend in Italy, but this is something we can achieve for the right client.

Spain is becoming increasingly popular again, with prices set to boost significantly over the next five years—so many of our clients are looking to get in ahead of this upward curve. In Spain, clients with straightforward profiles could expect to borrow up to 70% loan to value, on a capital repayment basis, at rates of about 1.9%.

Switzerland is another popular destination. Again, many clients will be required to place assets under management as a condition of lending, but this does mean you could reasonably expect to take out an interest-only loan of up to 75% loan to value. Location dependent, terms could vary from 1.2% 5-year fixed on an interest-only basis, with assets under management, or an 80% loan to value ‘dry loan’ at 2.2%.

Further afield

We have also worked with clients requiring financing further field. We recently secured terms for a client looking to refinance some property in New York, USA—so this is within our scope, for the right client. High net worth individuals could achieve a facility at 80% loan to value, at a rate of around 3.4%–providing you have the net worth to begin a relationship with the lender.

We can also secure terms in the Caribbean—click here to check out some of our articles on Carribean lending in St. Barts Life.

We also have a number of strong relationships with various lenders around the world, in addition to links to banks that have extended international offerings. Whatever your international property requirements are, it’s more than possible we could help—get in touch for a personalised illustration.

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