If you are thinking about buying an overseas property on a local mortgage, our overseas mortgage pages provide a detailed overview of the process, costs and the amount you can borrow country by country.
Learn more about Mortgages in France, Canada, Bulgaria, Germany, Portugal,Spain, Italy, Turkey, Australia, Cyprus, North Cyprus, Florida, Carribean, New Zealand, other countries
For many lenders of overseas mortgages the rules the use to access affordability are different to the UK, in the UK most lenders use earnings or income to calculate the amount you can borrow, overseas lenders tend to look at your disposable income as a baseline for the multiple of what they are prepared to lend, some will take guaranteed rental income or where there is a sitting tenant into account, but many are wary of any assessment you may personally make as to the projected income derived from letting.
As a general rule of thumb the typical Loan To Value (LTV) overseas is 70%, some lenders will go to 80% but more than this rare.
Our Partner for Overseas Mortgages is Conti Financial Services
Other recomended providers
Lloyds TSB Offshore
Barclays
HSBC International
Some developers offer special schemes, offering to pay the interest on Re-Mortgage or Loan you take out to pay the 30% deposit, these offers are usually linked to guaranteed rental schemes, where there will be restrictions on personal use, and apply mainly to Holiday Resort property e.g. where the ongoing letting of the property is undertaken by a management company who promote the resort as holiday destination. This is known as an offset finance scheme Example
Arranging your overseas mortgage is easily done in the UK with either UK specialist companies or UK the branch of major lenders. Our advisors will be pleased to provide any information you may require Contact us
Some other things to bare in mind are the fluctuations in exchange rates, the risk of this can be offset by taking out a contract which fixes the exchange rate for periods of up to 3 years, again our staff will be happy provide a list of companies you can contact for detailed advice Contact us
Obtaining payment protection insurance for an overseas mortgage is difficult, a more general loss of income insurance is a more practical proposition, our advisors will be happy to provide a list of Independent Financial Advisors who can help in this area Contact us