• Buying in: Les Gets
• Property price: €644,000
• Loan Amount: €450,800
• Mortgage Type: Repayment
• Mortgage Term: 20 years
• Interest Rate: 1.35% fixed for the duration 
• Loan-to-value: 70% + 15% in a savings account

The background

Our client is a EU expat living in Singapore with a great financial profile. However, as he was purchasing an Off Plan property, it reduced our options as a few banks restrict this option to EU residents only. But at FPF, we have enough resources!

Our approach

FPF secured a great rate though at a relatively low net LTV. While a 30% deposit is customary for non-resident buyers, many lenders will also insist that new clients place funds with them to create a wider relationship that is more commercially sound for the bank as a group. 

This can be in the form of a saving or investment account, pledge or accessible, and varies depending on the lender and the borrower’s profile. Here the bank asked for 15% of the loan amount to initiate the relationship so almost a 45% down payment in total. This solution was a good fit for the client who was very liquid and did not mind transferring over some monies to secure competitive pricing. 

The only downside was that the lender really wanted to meet the client in person to open the bank account while the client was on an intensive work travel schedule and . As a result, the meeting took place 2 months after getting the loan approval but the vendor had been made aware and there was no complication.