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Mortgages also tend to be more fiscally advantageous than buying in cash, especially if you’re buying abroad. Let’s say you want to buy a holiday home in the south of France. France’s wealth tax is due against your assets held in France, i.e., the total price of your property if you’ve just purchased it in cash. If you have a mortgage on that property, wealth tax is only levied against your equity – that can be a significant saving over several years. Even at the most basic level, getting a mortgage will potentially save you thousands of pounds in bank fees and exchange rates, considering what it costs to exchange and send money internationally.

Finally, it’s essential to understand what mortgages aren’t. When you have this kind of liquidity, ‘mortgage’ doesn’t need to inspire visions of an inflexible, 25-year home loan. If you’re very liquid, your mortgage will be completely personalised and often, there’s nothing that can’t be negotiated. Depending on what you bring to the table, you will be able to choose from dry mortgages, the lowest interest rates (usually with assets under management), 5-, 10- or 15-year loans, a high loan-to-value deal, no early repayment penalties, a mortgage on an international property – whatever you want.

Mortgages are often seen as complex and challenging, which puts people off applying for them if they have readily available cash. Applying for home loans can be cumbersome in other parts of the market, but it absolutely isn’t the case if you have significant liquidity. You will have the choice of lenders, and if you work with a mortgage broker, you are likely to find the process easy, efficient and fast.

For more first-rate guidance on all the questions involved in buying a high-value property visit the Tatler High Net Worth Address Book

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