Capital Raising for Holiday Homes

Buying a property can be the biggest decision made in our lives. It is for this very reason that it is critical to obtain expert advice from qualified advisers.

As property prices have increased, more people are now releasing money from either their home or any investment (buy-to-let) properties they may own, in order to buy a holiday home here in the UK, or abroad. We have extensive experience in arranging this type of finance and have access to a wide range of lenders to obtain competitive mortgage rates of and the best possible solution for you.

Remortgaging your home (i.e. switching to another lender) is a common way of raising capital to buy a holiday home. This option may be sensible for you depending on your personal financial situation, the value of your property and the current balance of your existing mortgage. If you are buying abroad, you will need to consider the impact of exchange rate fluctuations upon your mortgage payments when deciding whether to borrow at home or by borrowing overseas.

You could also consider taking a further advance from your current mortgage lender. This is typically at a different rate to your main mortgage and can make sense if:

  • Your lender’s further advance is competitive
  • You don’t want to remortgage (switch lenders)
  • You can spread your payment over a long term and your interest rate should be lower than a personal loan

But always check the market to see if you can get a better deal before committing.

If you are considering purchasing abroad, we have close links with a highly-respected company specialising in Spanish property who, over the past 30 years, have sold over 10,000 investment properties and holiday homes. Click here for more information on Spanish Legal Homes. 

Advantages of raising cash against a UK property to buy overseas

  • May provide lower risk to you, as you are not so exposed to exchange rate fluctuations
  • If you have paid off your existing mortgage, you may be able to borrow a larger amount.
  • The ability to choose a more suitable mortgage product, as many more options in the UK mortgage market.
  • Comparatively easier process than using an overseas provider.

Disadvantages of raising cash against a UK property to buy overseas  

  • Securing a mortgage against your home in the UK will put it at risk if you cannot repay the mortgage.
  • Various sets of UK and international regulations can make it more difficult to remortgage.
  • Very dependent on personal factors, such as current level of equity in your home and your personal financial circumstances.

So where do you begin? Starting the process couldn’t be simpler, just contact us on 01202 925365 to arrange an initial consultation to chat through how we can go about helping you to buy the holiday home of your dreams.


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