Overseas Mortgages

If you’re thinking about buying a home abroad, or perhaps you’ve already found the property you want to buy, a n overseas mortgage offers you an easier way to finance the purchase and avoid tying up significant wealth in one not very liquid asset.

Remortgage vs Foreign Currency Mortgage

There are two mortgage finance options available; consider whether it should be a sterling or foreign currency loan. Y ou can use equity from your UK home to release funds to buy your chosen holiday home, bear in mind UK banks do not lend directly on overseas properties, because other countries’ property purchase systems are outside their authority. So if people want to borrow in sterling they typically remortgage their UK home to release the capital that has accumulated as property values have risen.

Overseas Mortgages

The alternative choice is to secure your property with local finance via an overseas mortgage from your chosen country. There is the option to approach a specialist UK-based overseas mortgage broker to arrange an overseas mortgage on your behalf, usually with a local bank. The broker acts as an intermediary, sourcing the best deal, submitting the required paperwork correctly and bridging any language barriers and local mortgage complexities. Note that many firms change up to 1% brokerage fee in addition to commission received from the local bank.

Mortgage pros and cons

It can also be a worthwhile tool to gauge the merit of your real estate purchase, as lenders will require a valuation, which can offer a safeguard against an overpriced property. The downside of a mortgage is that you pay maybe a couple of times the price in interest charges over the years.

The costs of setting up a foreign mortgage can increase by as much 4% of the purchase price contrasted by much lower interest rates and higher upfront deposits usually 20% is the norm with repayment loans being the standard and the repayment period is usually 15-20 years, rather than 25 years. In comparison a UK remortgage can be relatively cheap though this is offset by higher interest rates.

Arranging your finance in advance means that your search for your ideal international home or investment is easier and you are able to secure the property knowing that you already qualify for a mortgage.

From mortgage quote to handing over the keys, our mortgage providers can support you every step of the way whatever overseas mortgage you choose. Using local expertise, they take care of the details simplifying a complicated process to help you make your chosen home your own whilst giving you peace of mind.

To find out more information or to start your application today, fill out your details below:

*Mortgage loan approval is subject to status and valuation. Mortgages are not available to persons under the age of 18 and it is advisable that you seek advice before making any commitment. Your home may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the Sterling equivalent of your debt.