The Scenario
A professional couple based in Virginia Water were exploring options to purchase a holiday home in the Algarve, Portugal.
Rather than securing foreign lending, they sought to remortgage their UK home to raise the necessary capital. Their plan was to unlock equity from their existing property to fund the full purchase and associated legal costs of a holiday flat in Vale do Lobo, without relying on Portuguese finance.
With a combined household income of £110,000 and a primary residence valued at £800,000, they were in a strong position, but had a specific set of requirements.
They wanted to act quickly once the right property was found, without being delayed by the unknown length of foreign loan approvals or uncertainty around overseas valuations. Their broader objective extended beyond just investment, this property would serve as a holiday retreat for their family and a potential income-generating asset during peak seasons.
The Challenge
A hurdle was finding a lender that would allow them to remortgage based on intention alone, before they had even identified the property in Portugal. Most lenders require detailed information about the purchase, particularly when funds are intended for overseas use. In this case, the client needed the flexibility to raise funds before making an offer, allowing them to move quicker when the right property appeared.
Also, the proposed borrowing needed to pass affordability checks not only against the couple’s UK income but also while considering anticipated costs of maintaining a second home, such as service charges, utilities, and insurance on the Algarve flat.
This required a lender open to working with forward-planning clients, willing to underwrite the case based on UK assets and income alone, and offering a quick turnaround to ensure the clients could be ready to transact abroad at short notice.
Find out Your Options
The Process
We began by consulting lenders who have a track record of supporting UK remortgages with flexibility around fund usage, particularly when the end goal involves international property.
Our dialogue with lenders focused on three key points:
- Willingness to lend without full purchase details of the foreign property
- Ability to underwrite based on projected use and affordability
- The likelihood to offer a fast turnaround, given the urgency of our client’s timeline
Halifax stood out early in the process. They expressed openness to the scenario, approved the affordability assessment, and confirmed they would proceed without needing specific details of the Algarve property. On recent cases, they had produced offers quickly so this gave us confidence that they may be able to for this case too.
Following a successful valuation on the UK home, Halifax produced a formal mortgage offer within just eight days. This speed was important in keeping the clients in a strong buying position as they began viewing properties abroad.
The Solution
We secured a repayment mortgage over 18 years with Halifax. The terms included:
- A competitive interest rate
- Free property valuation
- Legal costs covered for the remortgage process
This product offered both value and peace of mind. The clients were able to remortgage their home in the UK without unnecessary administrative friction or international complications. Monthly repayments were well within their means, aligning comfortably with their income and lifestyle.
Most importantly, this approach gave them a clear budget and funds-in-hand before travelling to Portugal, improving their ability to negotiate and secure the right property.
The Outcome
A smooth remortgage process, a quick mortgage offer, and the freedom to purchase their dream flat in Vale do Lobo without delay.
By raising the funds in the UK:
- The couple avoided foreign lending hurdles
- Gained confidence through familiar legal and financial processes
- Benefitted from a fast and efficient lender decision
- Maintained full control over their purchase timeline
They have since completed the purchase and are now enjoying sunny holidays and golf breaks in the Algarve. The property is also expected to generate seasonal rental income, adding further value to their investment.
Their feedback was positive: “Very satisfied as we’ve now completed on our holiday home, more sun and golf!”
If you’re considering buying a property abroad and want to raise funds through a UK remortgage, get in touch with us today.
