Overseas Mortgages

Even if everything else about finding an overseas property is problematical, finding the right mortgage needn’t be. Whether you’re looking for a holiday retreat, retirement home, or even a nice little overseas earner, there are plenty of options open to you.

In spite of the fact that there are fundamental differences between raising an overseas mortgage and a UK mortgage, obtaining a mortgage for an overseas property is now easier than ever, thanks in no small part to the internet. With specialist sites devoted to the ins and outs of the overseas market and brokers specialising in finding the best deal for your Euro, Dollar or Yen, the overseas property market is genuinely open for business.

While the house buying process varies considerably from country to country, your overseas mortgage broker will ensure that the financial side of things at least, seems straightforward. Assuming you don’t have the ready cash to buy your overseas property outright, particularly in cases where you’re unwilling or unable to sell your UK home, then there are essentially two ways in which to finance the transaction. You can utilise the equity from an exiting property here in the UK; and/or apply for an overseas mortgage on the property. Bear in mind that continental mortgages aren’t based on 3.5 times your salary, but are predicated on your perceived ability to pay the loan back. In either case you’ll probably need to deal with two sets of financiers: one in the UK and one abroad. Even if that sounds like a recipe for a protracted stay at the Costa del Hell; don’t worry, it’s not!

Because of the complexities involved, it makes sense to utilise reciprocal assistance in financing your overseas home to be, or home to let. It really does make things easier. By the time you’ve investigated some of our links to overseas mortgage providers you’ll find that they work in close conjunction with mortgage providers in many other countries, making it easier for you to access the world. That means you’ll get unrestricted access to the sort of insider deals that would otherwise have passed you by if you’d tried to go it alone.

And when you’re looking for brokers, financers and lenders, target the specialists. That means if you’re buying French, make sure you ‘regardez’ the bespoke French mortgage providers first and foremost. You can move on to the all purpose providers later.

By and large, taking out your mortgage loan in the currency in which you’re going to be dealing makes a lot of sense. The principal advantages vary from continent to continent, but it’s generally accepted that unless you really know what you’re doing, dealing in fluctuating exchange rates can confuse the best of us. So, you should either enlist the services of a broker who’ll work to maximise the advantageous rates and minimise the rest; or deal exclusively in the currency in question. That’s particularly advisable if you’re buying to let.

While overseas mortgages are generally less generous in terms of how much the lenders will stump up, your brokers will work hard to find the deals that compensate for the shortfall. And bear in mind that lower property prices and a favourable exchange rates can make it a very lucrative transaction. Even so, buying overseas property is invariably going to feel like a risky investment; but in this day and age, there’s no reason why it should. Even the simple fact of buying an overseas mortgage gives you more certainties than a cash sale. The lender will only ever sanction the mortgage application if the property is correctly valued, and you’ll get all the same flexibility that you’d expect with a UK mortgage. All in all, investing in overseas property may be simpler, safer and smoother than you might think.

So, if you’ve ever thought about investing in overseas property, or investing in a better life for yourself, now is the time to do it; now the world really is your oyster.