Investec Private Bank in London has seen an increase in the number of clients looking to take out mortgages to purchase overseas properties.

Investec focuses on loans in excess of £1 million ($1.8 million).  This regularly includes arranging finance for UK clients to purchase overseas properties, typically worth over €3 million (£4.3 million), in prime areas in France, Italy, Spain and Portugal. 

This year, Investec has seen a much stronger interest from clients looking to purchase in the south of France and Italy, and a significant drop in demand for mortgages on Spanish properties, which is a reflection of the current problems in the real estate market there.  

Andrew Arnott of Investec said:  “As the UK housing market slows down, many high net worth individuals are increasingly looking to purchase overseas properties as they see them as representing a better investment opportunity.  The majority of our clients purchasing a property abroad are looking for a second home, but investment potential is always at the forefront of any decision.”