Some buyers raise finance by remortgaging their UK property, and others fund their purchase with an overseas mortgage provider. Whatever your financing plans getting expert help could save you thousands.
Remortgaging your UK property is easy. However, an overseas mortgage does have advantages too. One advantage of an overseas mortgage is that your lender will carry out checks on the property to make sure they have enough security for the loan, giving you a bit of extra protection. And if you plan to rent the property, you would be earning money in the same currency as your mortgage, reducing your exposure to currency market volatility.
It is important to note that the process for securing a mortgage is different in each country. Hence, it is essential you use a specialist mortgage broker, as they will be aware of local requirements, have a detailed understanding of the mortgage application process, and be fluent in the local language of the country where you are buying.
Compared to a UK mortgage application, you usually need to provide more paperwork for an overseas mortgage. Including up to six months of bank statements and three years of accounts if you are self-employed. Also, the lender checks you have enough income to pay the mortgage; any rental income expected from the property is not taken into account.
The amount you can borrow against the property’s value will not be as much as in the UK and is different in each country. And though interest rates are generally comparable to the UK in EU countries, rates may vary further afield.
Before you start looking for your dream overseas property contact a good mortgage broker, they will give you a good idea of borrowing options. It is surprising how many fall in love with a property they cannot afford.
Raising finance without professional help often results in rejected applications or higher interest rates. We can put you in touch with recommended overseas property mortgage experts.