Overseas Mortgages

There may be a number of reasons why you may wish to consider an overseas property. This could range from better weather, looking to retire and start again elsewhere or maybe you just want to build up your property portfolio. Whatever the reason, you will be glad to know that Finbud can help you obtain that overseas mortgage in order to realize your dream. You can do this via an international lender or a UK bank There are several options available for you as follows:

Firstly, you could obtain a mortgage from a bank overseas-this is possible in more than 60 international property markets and we will be able to find you the best deal which can meet your needs when considering the length of a mortgage, interest rates and how much deposit you need to provide. Like in the U.K. overseas lenders will require similar proof as requested here. Mortgage rates in some areas of Europe are much lower than in the U.K.

For example, they will require proof of income (payslip or pension statement), proof of identity/address (passport/bank statement) and evidence of deposit.
There are both advantages and disadvantages of doing it in this way and Finbud will clearly set these out for you from the outset.

Another option would be to obtain an overseas property mortgage from a UK bank. One of the key advantages in choosing this option is that financing in the U.K. is easier because your credit record will be available and so it will be easier for banks here to assess your financial position. Although, one disadvantage may be a lack of local expertise overseas and things may take longer.

You could think about re-mortgaging a UK property in order to be able to buy overseas as this may enable you to obtain the required funds.

In relation to deposits-it is important to know that deposits abroad are higher than those in the U.K. For example, in Spain a deposit can be as high as 30% and are non-refundable. This means that it is important to get the best exchange rate possible to transfer your money.

The mortgage options available include the repayment mortgages, which require payment of all interest and debt accrues over the term or interest-only mortgages where you pay off the debt during the term and pay off the mortgage in a lump sum at the end. Alternatively, there is a fixed-rate mortgage that specifies an interest rate that is consistent throughout the term and does not change with changes in the interest rate i.e. it remains fixed. There are also variable-rate mortgages and tracker mortgages.

There are many considerations that need to be made when choosing where and what to buy overseas.

Firstly, make sure you research the area of the country where you wish to purchase the property. If you are considering purchasing a property in order to let it out, then you will need to ensure that the area where you wish to purchase is popular and that there is a demand out there from people who want to rent in this area.

You will also want to look at the location, state and type of property it is.