My Client Wants to Use an International Property as Security for a Loan

  • My Client Wants to Use an International Property as Security for a Loan

    My Client Wants to Use an International Property as Security for a Loan

It’s no secret that lenders like to keep loan security local: UK lenders lend against UK collateral, French lenders lend against French collateral…and so on. While this can be frustrating for anyone who wants to enter into a cross-border property transaction, it’s also an understandable stance for most lenders to take. It’s infinitely less risky for lenders to underwrite a loan in a market they operate in and are highly familiar with than to do the same in a jurisdiction they don’t know.

But what happens if your client wants to buy a property abroad? It’s a common situation, and yet one that isn’t well catered to by most institutions. Even British lenders – some of the most open-minded and solution-driven creditors in the world – will stop well short of granting your client a loan secured on an international property.


Approaching local lenders in the location your client wants to buy property is a highly valid option. If you have a client that wants to buy a Spanish property for EUR 200,000, Spanish lenders will generally be eager to lend if your client is liquid, employed, earning a good income and can clearly afford the mortgage. Domestic lenders will usually adopt a similar approach in France, Italy, Portugal, and the rest of continental Europe. The same will be true for UK property purchases if your client is not UK-based.

However, depending on your client’s background, situation, and how much they want to borrow, local lenders won’t always produce the quick win you’re after.

Anything less than the most straightforward transaction is likely to limit what – and sometimes if – your client can borrow. This is particularly true if your client is a high-net-worth individual or someone with a complex background. Getting a mortgage for an international property renovation, real estate investment, high-value property purchase, luxury holiday home, or an impulse buy can often be a real challenge.

Why Bridging Finance?

With international connections and a deep understanding of the international real estate market and your clients’ needs, Tenn offers loans secured on prime and high-value international real estate.

A fast and flexible debt solution, bridging finance is ideal for international real estate transactions. The underwriting process is much quicker than a mortgage: with the right information, we can make a lending decision in less than a working week. From the moment negotiations start to your client receiving funds can take as little as 14 days (and potentially much less if the situation merits things moving faster).

Tenn can lend significant capital for real estate purchases regardless of your client’s nationality, residence, and where the property is they want to buy. This separates us from much of the bridging market, which predominantly lends against UK real estate.

Bridging finance is a short-term financing solution, and we can lend anywhere from a few weeks to 36 months. At term, your clients can refinance or make alternative plans to pay off the loan.

Your Client’s Property and Profile

We are open to lending significant amounts against international property, as long as your client’s real estate is in a highly desirable location with a track record of strong property sales.

Your client will need to be a credible borrower. Again, we don’t have strict prerequisites that dictate who we can or can’t lend to. However, your client will need to have solid finances, and we’ll need to see proof of this. A good reputation and the quality of your client’s professional relationships, advisors and management will also speak volumes.

Lastly, bridging finance is a short-term lending solution. Your client will need to be able to have a viable plan for exit that makes sense financially.

Contact Us

If you have a client that would like to buy an international property or if you would like to know more about how bridging finance can be used in cross-border property transactions, get in touch. We can explain more about how bridging finance works and give more specifics on any scenarios or potential situations you have in mind.