Mr and Mrs Green, a Surrey-based couple, were looking ahead to retirement and wanted to make their dream of owning a second home in Spain a reality—sooner rather than later. They were eager to enjoy family getaways in the sun before fully retiring.

I was introduced to the couple by Beavis Morgan, specialists in accountancy and tax planning, for financial planning advice that would help make this happen.

Initially, the Greens planned to fund their purchase using a combination of tax-free cash from their pensions, other savings and a Spanish mortgage. However, after thoroughly reviewing their circumstances, I identified alternative solutions that would be more beneficial for them.

The first step was to assess their projected retirement income to give them a clearer understanding of the lifestyle they could afford and how much of their pension savings they could comfortably use for the purchase. This also highlighted areas where improvements could be made while they were still saving.

As a result, we were also able to consolidate their various pension pots into a solution that was better aligned with their attitude to risk at their current stage of life, and reduced the paperwork and administration they had to deal with.

With a clearer picture of their savings and retirement income, we then turned to their mortgage options. Mr and Mrs Green had concerns about the affordability of the rates that were being offered for mortgages in Spain which were significantly higher than expected. These second home mortgages were in Euros, and normally between 12-15%.

Upon further investigation, we found that the property they had their hearts set on was actually from a probate sale of a family based in the UK. This allowed them to pay in Sterling instead, rather than take the currency risk of a mortgage in Euros which could be impacted by the rise and fall between currencies, potentially leading to fluctuating repayment values.
I then introduced the couple to Dan Gladstone at Gladstonei365 Mortgage Brokers, whom we work closely with to provide mortgages to clients from everyday to more complex situations, in order to come up with a suitable option for them.

We discovered that the Greens had a small mortgage on their main residence. Rather than taking a mortgage on their property in Spain, Dan arranged to remortgage their main residence, securing a more competitive interest rate and simplifying their finances. This solution also gave them greater clarity on their long-term financial plans.

To fund their home in Spain, we found that once their tax-free cash was paid from their pensions, this not only offered them sufficient funds to purchase this but also to carry out renovations without the long-term burden of higher interest rates.

This process involved a tight deadline to ensure they could pay the deposit and secure the property, so having both myself and Dan working together on the process helped to speed things along.

Now, the Greens can focus on their last few years of work before retiring to boost their retirement pot and enjoy their time away in Spain.

Having the right team of experts around you can offer more specialist advice and knowledge where required, and can speed up the process of achieving your goals. At Integrity365, we leverage a robust network of trusted professionals – including mortgage brokers, insurance specialists, accountants, solicitors, and tax experts – to provide comprehensive support tailored to our clients’ unique needs.

We also value collaboration with any existing professionals our clients may have, as we believe that the best financial plans are informed by a thorough understanding of your overall circumstances. By liaising with these connections on your behalf, we aim to alleviate the pressure of planning and create a seamless experience as you work towards achieving your dreams, such as purchasing a second home.