A UK-based professional couple sought to purchase a second home in France while avoiding restrictive lending conditions imposed by French banks. With a debt-free UK property, they needed to raise £320,000 efficiently and within a tight timeframe. Working with Elizabeth Powell, they structured a UK remortgage solution that unlocked capital, avoided liquidity constraints, and provided long-term flexibility aligned with their retirement plans.
A Cross-Border Property Strategy With Hidden Constraints
We often see UK-based clients looking to secure property in France while maintaining financial flexibility and control over their capital.
In this case, the clients had already explored borrowing locally in France. While they were offered a competitive-looking rate of 3.75% over 15 years, the structure came with a significant constraint: a requirement to hold £60,000 in a linked savings account. From a lender’s perspective, this acts as a form of risk mitigation. From a client’s perspective, it is effectively trapped liquidity.
For borrowers searching for
“how to buy a property in France using equity from a UK home”, this creates a clear strategic question, should debt be raised in France, or is it more efficient to leverage UK assets?
The clients were high earners with stable employment, combining salaried income with significant bonus structures. However, despite strong income, their priority was not maximum borrowing, it was control, speed, and efficiency of capital.
Why Traditional Routes Were Not Optimal
Traditional lenders, particularly in cross-border scenarios, often struggle to balance flexibility with risk management. French banks, while competitive on headline rates, typically introduce structural conditions such as:
- Mandatory savings retention
- Lower loan-to-value limits for non-residents
- Slower underwriting timelines
- Limited flexibility on early repayment or restructuring
In parallel, UK lenders may not finance overseas property directly, meaning a conventional mortgage secured on the French property itself was not viable through UK channels.
This left two realistic pathways:
- Accept restrictive French lending terms
- Raise capital against the UK property
The second option required careful structuring. While the clients owned their UK home outright, raising £320,000 on a capital repayment basis over a short term introduced affordability considerations, even for high earners.
Structuring the Right Solution
Working closely with the clients, Elizabeth Powell structured a UK remortgage strategy that balanced three competing factors:
- Monthly affordability
- Speed of execution
- Long-term financial planning
The agreed approach was to raise £320,000 against the UK property, maintaining a conservative loan-to-value ratio. This positioning was critical.
Specialist lenders are able to view low LTV cases more favourably, often providing stronger pricing and more flexibility in underwriting, particularly where income includes variable elements such as bonuses.
The initial structure focused on an 11-year capital repayment term, aligning the mortgage with the clients’ intended retirement age. This ensured the debt would be fully cleared before retirement, addressing their desire for long-term financial security.
However, this came with a trade-off. The shorter the term, the higher the monthly payment. This was well within affordability but required a conscious decision around cash flow.
To provide optionality, an alternative 18-year term was also explored. This reduced monthly payments, offering greater flexibility while still maintaining a clear repayment trajectory.
This dual-structure approach is often overlooked but critical. It allows clients to choose between:
- Accelerated repayment and reduced interest over time
- Lower monthly commitment and improved liquidity
Underwriting Considerations and Lender Behaviour
From an underwriting perspective, several elements required careful positioning:
The clients’ income included a significant bonus component. Traditional lenders often haircut or exclude variable income unless there is a consistent track record. In this case, demonstrating historical earnings and employer stability was key to ensuring the bonus income could be partially included.
Their employment tenure also required explanation. One client had been in their current role for less than a year. While this might concern some lenders, the broader context, seniority, career history, and industry stability, allowed the case to be positioned more favourably.
Existing liabilities, including a car loan and personal borrowing, were factored into affordability. However, the clients’ strong surplus income meant this did not materially impact borrowing capacity.
This is where specialist lenders differentiate themselves. Traditional lenders often apply rigid affordability models, whereas specialist lenders are able to take a more holistic view, particularly in
complex income structures and high-net-worth scenarios.
A Faster, More Controlled Outcome
The final structure delivered several strategic advantages:
The clients were able to access funds within a 2–3 month window, aligning with their purchase timeline in France. This was significantly faster than many cross-border mortgage processes.
They avoided the requirement to hold £60,000 in a restricted savings account, preserving liquidity for other uses, including furnishing, renovations, or future investments.
The mortgage was structured on a capital repayment basis, ensuring full repayment within their desired timeframe, while still allowing up to 10% annual overpayments for additional flexibility.
Crucially, the solution remained entirely within UK jurisdiction. This simplified legal processes and aligned with their existing financial infrastructure, avoiding the complexity often associated with
expat mortgage scenarios and cross-border lending.
The Bigger Picture: Strategic Use of UK Property Equity
This case highlights a broader trend in the market. Many UK homeowners with significant equity are increasingly using it as a strategic tool to fund international property purchases.
Rather than viewing their UK home purely as a residence, it becomes a financial asset capable of unlocking opportunity.
This is particularly relevant in scenarios involving:
- Cross-border income or assets
- Multiple property ownership structures
- Long-term lifestyle planning, such as retirement abroad
It also connects closely with
bridging finance strategies, where speed and flexibility are critical, and
currency or cross-border income considerations, where managing exposure becomes part of the decision-making process.
Key Takeaways
What made this transaction possible was not simply strong income or equity, it was the ability to structure the case correctly for the right lender.
Traditional lenders would have struggled with elements such as bonus-heavy income and recent employment changes, while French lenders imposed restrictive conditions that reduced financial flexibility. By leveraging a low loan-to-value position and presenting the clients’ full financial profile, the lender was able to take a more nuanced view of affordability and risk. For similar clients, the key lesson is that the structure of the borrowing, term, jurisdiction, and lender type, often matters more than the headline rate. Specialist advice becomes critical in navigating these decisions, particularly where cross-border considerations and long-term planning intersect.
Frequently Asked Questions
Can I use equity in my UK home to buy a property in France?
Yes. Many UK homeowners choose to remortgage or raise capital against their UK property to fund a purchase in France. This approach can provide faster access to funds, greater flexibility, and may avoid some of the lending restrictions imposed by French banks, particularly for non-resident borrowers.
Is it better to take a UK remortgage or a French mortgage when buying in France?
The answer depends on your circumstances. French mortgages can offer attractive headline interest rates, but they may also come with conditions such as mandatory savings deposits, lower loan-to-value limits, and longer approval times. A UK remortgage may provide greater flexibility and allow you to retain control over your capital.
Can bonus income be used to secure a UK remortgage for an overseas property purchase?
Yes, provided it is structured correctly. Many specialist lenders will consider annual bonuses alongside basic salary if there is a consistent history of payments and evidence that the income is sustainable. Presenting bonus income effectively can significantly improve affordability.
Will changing jobs recently affect my ability to remortgage?
Not necessarily. While some lenders prefer applicants with longer employment histories, specialist lenders often take a broader view. If you have a strong career record, senior position, or stable industry background, a recent job move does not automatically prevent you from obtaining finance.
Do French banks require UK buyers to keep money in savings accounts?
Some do. Certain French lenders require borrowers to retain a proportion of their savings in linked accounts as additional security. While this can help satisfy lending criteria, it also restricts access to your own capital, which may reduce financial flexibility after the purchase.
Can I buy a second home in France without taking out a French mortgage?
Yes. Many buyers finance their French property by releasing equity from a UK property instead of borrowing against the French home itself. This can simplify the purchase process and reduce reliance on overseas lending requirements.
What loan-to-value is usually available when remortgaging to buy overseas property?
This varies between lenders and depends on your income, affordability, and property value. Borrowers with low loan-to-value requirements often benefit from more competitive rates and a wider choice of specialist lenders.
Can I choose between shorter and longer mortgage terms when raising capital?
Yes. A shorter mortgage term typically results in higher monthly payments but lower overall interest costs. A longer term reduces monthly repayments and improves cash flow, while many lenders also allow annual overpayments so you can repay the mortgage more quickly if your circumstances allow.
Are UK specialist lenders better suited to complex international property purchases?
In many cases, yes. Specialist lenders are often more willing to consider complex income structures, bonus-led remuneration, recent employment changes, and cross-border financial planning than high street lenders with more rigid underwriting criteria.
Why should I seek specialist mortgage advice before buying property in France?
Cross-border property finance involves more than simply comparing interest rates. The lending structure, affordability assessment, jurisdiction, repayment strategy, tax considerations, and future financial plans all need to work together. A specialist adviser can compare UK and overseas funding options to identify the most suitable solution for your circumstances.
Considering Buying Property in France?
If you're planning to purchase a home in France and want to explore whether raising capital against your UK property could offer a more flexible and cost-effective solution, speak to Willow Private Finance. Our experienced advisers specialise in complex UK and international lending, helping clients structure finance that supports both their immediate property purchase and their long-term financial goals.
Important Notice
This case study is provided for illustrative purposes only and does not constitute financial advice. All client details have been anonymised, and certain elements may have been simplified to preserve confidentiality while demonstrating the structure of the transaction.
Cross-border property finance, including raising funds against a UK property to purchase real estate overseas, is assessed on a case-by-case basis. Outcomes will depend on individual financial circumstances, income structure, lender criteria, and prevailing market conditions at the time of application.
The availability of mortgage products, interest rates, and lending criteria is subject to change and may vary between lenders. Not all lenders will consider applications involving overseas property purchases, variable income (such as bonuses), or shorter employment histories without additional underwriting and due diligence.
Raising capital against your home will increase the level of borrowing secured against it. Your home may be repossessed if you do not keep up repayments on your mortgage. Careful consideration should be given to affordability, particularly where repayment terms are shortened to align with retirement planning.
Currency exposure may arise where assets, liabilities, or expenditure are held in different jurisdictions. Exchange rate movements can impact the overall cost of ownership and should be considered as part of any cross-border financial strategy.
Tax treatment relating to UK and overseas property ownership, including potential liabilities in multiple jurisdictions, depends on individual circumstances and may change over time. You should seek independent advice from a qualified tax adviser or legal professional familiar with both UK and local regulations before proceeding.
Protection products, including life insurance and income protection, are subject to underwriting, terms, and conditions. The suitability of any protection arrangement should be assessed in line with your financial commitments, particularly where new borrowing is introduced.
Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422).
