Funded by a private bank which wishes to remain anonymous, the product offers borrowers a Sterling-denominated mortgage with the ability to offset cash in Sterling, US Dollars, euros or Swiss francs. The cash amounts and currency can change each month.

 

“This mortgage should appeal to a broad range of individual and portfolio investors looking to buy £1m-plus property in London in particular,” said Paul Welch, managing director of Largemortgageloans.com.

“The multi-currency offset facility offers excellent flexibility to high net worth individuals who do not wish to move other currencies into Sterling but wish to offset currency funds against their loan.”

There has been a steep rise in the number of overseas buyers looking to buy property in the £1m+ bracket in the UK since Sterling started to weaken.

Sponsored

Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let

Sponsored by Aldermore

However, with the General Election looming and fears regarding the potential impact of a hung parliament on Sterling, many top-end overseas purchasers, although interested especially in the London market, have been delaying their buying decisions in recent months, being loath to make a currency commitment at this stage.

“This mortgage gives overseas purchasers the opportunity to buy now while reducing their exposure to currency fluctuations,” said Welch.

The multi-currency offset mortgage will be tailored on a bespoke basis for each applicant, with the maximum loan-to-value available and fee payable determined on a case-by-case basis.

The private bank behind the mortgage is understood to have a generous amount of funds available. “I would certainly like to think that we could lend more than £100m to the right clients with this product,” said Welch.