INTERNATIONAL MORTGAGES
Property buyers looking to purchase a home in another country are often hamstrung by their nationality and place of residence. But these factors don’t have to hinder your ability to secure a mortgage against a property anywhere in the world.
International mortgages enable you to secure a loan to purchase properties in countries you don’t live in, including prime European markets, the United Kingdom and the United States of America. However, finding the right lender to secure the best international mortgage for your financial portfolio can be challenging. For example, some UK banks offer international mortgages but financing a property in another country can be difficult, and you may not get the best mortgage rates and terms possible.
Hectocorn’s expert insight into the international mortgage market ensures you deal with the most appropriate, specialised lenders who offer the best finance deal for your specific situation.
Hectocorn has extensive experience securing international mortgages for ultra-high-net-worth individuals purchasing properties worldwide. Our international mortgage experience includes these core locations:
The UK property market is one of the most complicated, highly liquid and competitive, yet also one of the world’s most sought-after and prices continue to increase. For example, UK average house prices rose by 15.5% in the 12 months leading to July 2022, according to the Office of National Statistics.
This makes the UK a particularly attractive choice for investors. As a result, countless mortgage providers lend in the UK, from international banks to building societies and more niche lenders. Each institution has its own lending criteria, interest rates and conditions and specialises in various mortgage options, from regulated mortgages to bridging finance and commercial mortgages.
International mortgages in Europe vary based on the country in which you wish to purchase a property.
FRANCE
France’s domestic and international property investment opportunities remain a popular choice for ultra-high-net-worth individuals. The French property market is well-developed but has its unique quirks. For instance, purchasing a property in France gives non-residents the option to lock in highly beneficial long-term rates.
MONACO AND CÔTE D’AZUR
Monaco remains one of the most desirable locations in Europe with wealthy property buyers due to its advantageous tax system. Monaco’s financing and real estate system imposes few restrictions on foreign buyers, which means sales can conclude within as little as two months. However, the principality’s size means limited real estate opportunities exist on the market.
Nearby locations like St Tropez and Cannes have long been a magnet for the ultra-wealthy and famous. And the region has benefited from global prestige, making it a premium location for investments.
GERMANY
Germany is a prime property investment destination due to its regional diversity, ranging from Berlin to Bavaria and Lower Saxony. The country has a robust buy-to-let market, low-interest rates and simple international mortgage processes, which offer great incentives for foreign buyers. For example, research by the EU Commission found that German property values increased by 94% between 2010 and 2022, compared to a 45% EU average.
GREECE
Greece’s property prices are low compared to the broader European market, making it a particularly favourable destination for ultra-high-net-worth individuals. Locations like Athens, Crete and Mykonos can offer an average rental yield of 4% and 50% loan-to-value (LTV) mortgage rates for foreign nationals.
An investment of €250,000 in Greek property makes you eligible for a Greek visa. While non-residents can obtain an international mortgage for real estate located on the mainland and the Greek islands, an additional permit is required in border areas like Rhodes and Crete.
ITALY
Investing in Italian property remains popular with many ultra-high-net-worth individuals. High rental yields, ranging from 3% to 6%, offer a rapid return on investment, and purchasing an Italian property is reasonably straightforward. Most Italian banks are eager to give mortgages to non-resident investors, but you may be required to provide paperwork proving you’re a low-risk borrower. That said, it’s worth noting that foreign investors cam struggle to secure an international mortgage in Italy without assets above €5m or placing assets under management.
LUXEMBOURG
Luxembourg remains one of Europe’s most expensive places to live, with an average GDP per capita of $111,500 and property prices 70% higher than the EU average in 2021. The country is appealing as no restrictions are placed on foreigners wanting to purchase properties, but a reasonably large deposit is required. When purchasing a property in Luxembourg, you’ll also need to consider additional charges like registration and notary fees.
THE NETHERLANDS
Interest rates in the Netherlands, like the rest of Europe, are low, making the market an excellent long-term investment. Despite high prices, mortgage repayments are significantly lower than rent prices, particularly in Rotterdam, The Hague and Amsterdam, making the Netherlands an excellent long-term investment option.
PORTUGAL
Portugal is a desirable option for ultra-high-net-worth individuals looking for an international mortgage. Portuguese properties offer an average rental yield of 5% to 8%, prices are increasing and purchase processes are relatively quick and straightforward. The country also provides the Golden Investor Visa, which is available to non-EU nationals who invest significantly in the Portuguese market.
SPAIN
Investing in Spain remains a profitable asset, particularly regarding short-term and long-term renting, with a rental yield of 4%. Areas like Ibiza and Mallorca can be particularly profitable, along with the booming Malaga real estate market. However, Spanish banks can be stringent.
SWITZERLAND
Switzerland remains a popular destination for ultra-high-net-worth individuals due to its appealing property market, favourable taxation system and high standard of living. There are several limitations to purchasing a property in Switzerland as a foreign investor. For example, the Lex Law prohibits the acquisition of Swiss real estate by foreign nationals without a permit. This can make the market tricky to navigate, especially when requesting a high LTV mortgage, but it is possible to obtain 100% finance using assets under management (AUM).
Obtaining an international mortgage in the United States differs for each city and state. For example:
LOS ANGELES
Non-Americans can purchase property in Los Angeles with a substantial down payment, a liquid bank account and significant reserves. In 2021, California accounted for 20% of all foreign purchases and LA has an average rental yield of 5% and up. Beverly Hills has long been a preferred location for foreign investors, offering great long-term returns as prices rise.
NEW YORK
New York is a great location to secure an international mortgage. Rental yields can surpass 3%, and rental apartments make up around two-thirds of the city’s housing stock. However, the down payment is a crucial consideration in avoiding high-interest rates.
TEXAS
Foreign nationals face no restrictions when purchasing a property in Texas, which offers relatively low living costs compared to LA and New York, with rental yields as high as 7.5%.
The idyllic location of the Caribbean offers rich opportunities for ultra-high-net-worth individuals to secure an international mortgage. The island of St. Barts is particularly appealing as it has no restrictions on foreign nationals purchasing property and no annual real estate tax. Aruba, Bonaire and Curaçao have no restrictions on foreign investors and offer freehold and land lease options. And the Government of Barbados welcomes buyers from around the world and provides a rental yield of around 4%.
Hectocorn specialises in securing highly personalised international mortgage arrangements that meet the specific requirements of ultra-high-net-worth individuals. We can help you open doors to lenders that specialise in international mortgages on high-value properties worldwide.
We have established relationships with leading international mortgage lenders. Our knowledge and experience enable us to obtain the best international mortgage rates regardless of any complex personal financial situation. We’ll analyse your circumstances to negotiate an international mortgage solution that meets your short-term and long-term goals.
With access to many international lenders, Hectocorn will source and negotiate the most favourable high value finance for you.
Available to you 24/7 from the moment you get in touch with us, Hectocorn works alongside you every step of the way up until the moment you collect your keys.
Property buyers looking to purchase a home in another country are often hamstrung by their nationality and place of residence. But these factors don’t have to hinder your ability to secure a mortgage against a property anywhere in the world.
International mortgages enable you to secure a loan to purchase properties in countries you don’t live in, including prime European markets, the United Kingdom and the United States of America. However, finding the right lender to secure the best international mortgage for your financial portfolio can be challenging. For example, some UK banks offer international mortgages but financing a property in another country can be difficult, and you may not get the best mortgage rates and terms possible.
Hectocorn’s expert insight into the international mortgage market ensures you deal with the most appropriate, specialised lenders who offer the best finance deal for your specific situation.
