sydney-harbour-dusk-header-an-expat-lending-solution-for-a-move-down-under

An expat lending solution for a move down under

Our client’s wishes

We were introduced to a British couple planning their move to Australia. As part of their relocation, they needed to dip into the equity of their UK buy-to-let property.

Having previously lived in the house, they wanted to release £1.5 million from their mortgage-free property valued at £2 million.

With Australia’s property market moving significantly faster than the UK’s, our clients needed quick access to the funds to secure the purchase of their new home down under. They wanted to be financially ready to act when they found their perfect property.

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Our clients' situation

Working closely with the couple, we took time to understand their full financial situation to allow us to provide a tailored solution that matched their specific needs.

However, our assessment revealed a challenge. The rental income from their UK property wouldn’t be enough to cover their mortgage payments in today’s high-interest environment.

To address this, we did a thorough review of their finances, which revealed their robust portfolio of savings, shares, and investments. This gave us confidence they could comfortably manage any shortfall in rental income against the mortgage repayments.

For additional security, we required a cash deposit covering six months of mortgage payments, which they readily agreed to.

As part of their relocation, we also highlighted their need for an Australian Dollar account to transfer their funds overseas, something our London-based Private Banker was able to set it up within just 48 hours.

To address this, we did a thorough review of their finances, which revealed their robust portfolio of savings, shares, and investments. This gave us confidence they could comfortably manage any shortfall in rental income against the mortgage repayments.

Our clients' outcome

To fit perfectly with their plans, we put together a practical two-part solution:

  • £200,000 on a variable rate tracker loan for one year with no penalties for early repayment. This worked perfectly as they planned to cash-in some investments within the year to reduce their borrowing.
  • The remaining £1.3 million on a 5-year fixed rate, giving them certainty about their monthly payments despite the fluctuating economic landscape.

Our clients are now finalising their Australian property purchase, delighted with how we were able to make their move a seamless transition.

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Get in touch with a member of our team to find out how Nedbank Private Wealth can help you achieve your financial goals and objectives.

Email our credit specialists directly at [email protected] or call +44 (0)1624 645000 to speak to our client services team.

Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

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