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Spanish Mortgage for the Client of a Professional Accountant

3rd October 2022
ASSOCIATE DIRECTOR

Monica Bisci

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High-value Mortgage for the Client of a Professional Accountant
Monica Bisci
ASSOCIATE DIRECTOR

Monica Bisci

Key Figures:

  • Introducer: Boutique accounting firm
  • Client: UK resident and national
  • Finance requirement: The adviser's client wanted to purchase a €5.2 million property in Ibiza, maximising what they could borrow. The accountant knew the client would need to put assets under management and wanted to explore new banking relationships, as the client's present bank didn't offer high-value mortgages. A successful banking relationship was key as the client and accountant wanted to build up a long-term relationship.
  • Loan: Variable rate of 1.6%, with €1.6 million placed under management

We were approached by a London-based accountant who wanted to help their client access a high-value mortgage to buy a luxury holiday residence in Spain. The client's current bank wouldn't supply a mortgage, so the accountant knew the client would need to put assets under management (AUM) to borrow as much as they wanted: €4 million. The rate was important, but the banking relationship was also of critical importance, given the accountant wanted to formalise the client's banking relationships with a single bank. 

We set up meetings with various banks we knew could offer a competitive mortgage so the client could discuss how assets would be managed and get comfortable with the bank's offering. The client chose the most competitive offer, satisfied with the bank's approach, with the bank lending €4 million on an interest-only basis over a seven-year term, with a highly competitive variable rate of 1.6%. The client placed €1.6 million AUM.

The accountant was delighted with the situation, given the client was delighted with the banking relationship and the bank's approach to investing their assets