PropertyFinance4Less is offering an international equity-release scheme for overseas property owners.
The product, when combined with a currency account and overseas payment plan from sister company Currencies4Less, allows people with homes in Spain, France and Portugal to release the equity in their properties, which is not permitted in these countries’ domestic markets.
The scheme is available to homeowners who are non-resident in the country where the property is located. The loan can only be taken out on residential properties. Homeowners with properties in France can release up to 60 per cent while owners in Spain are allowed up to 40 per cent and up to 70 per cent in Portugal. Minimum loan term is seven years and maximum 20 years.
PropertyFinance4Less is based in London and allows homeowners to use European mortgage rates. The European Central bank base rate is 2 per cent compared with the UK base rate of 4.75 per cent.
The interest rates for international equity release are 3.86 per cent in Spain, 3.92 per cent in France and 4.05 per cent in Portugal.
The company estimates that 200,000 Britons will look to buy an overseas property this year, with a further two million people estimated to buy within five years.
Director Miranda John says the most effective route to accessing equity has been to sell, which is complicated, time-consuming and expensive. She says: “Research by our currency trading division found a staggering two-thirds of those buying foreign property actually intended to access the equity at a later date. Having identified this gap in the market, we set about finding a solution.”