Overseas mortgages

When buying a house abroad one payment option you may want to consider is taking out an overseas mortgage in the local currency.  It can save you money as sometimes overseas mortgages charge slightly lower interest rates than UK mortgages.

Similar to lenders in the UK, overseas lenders will require you to prove your income through pay slips or accounts, and there is usually a maximum percentage of the property value that they will lend you.

If you don’t want to take out an overseas mortgage, you might want to think about releasing equity from your property in the UK and using the money to buy the property overseas outright.  Find out more about equity release here.

It’s important if you are thinking about getting an overseas mortgage to seek professional advice from experts who are familiar with the country you are buying property in, as well as its language and customs.  They should also be able to guide you through some of the problems and pitfalls of buying property in a foreign country.  You will need a solicitor to carry out conveyancing on your behalf.  A specialist overseas mortgage adviser can also help to arrange and find the best overseas mortgage for you.

Questions you might like to ask a mortgage adviser or solicitor…

  • What percentage of the property value will an overseas lender require for a deposit?
  • Would I be better off getting an overseas mortgage or releasing equity from my property?
  • What happens if exchange rates change?
  • Are there any extra costs involved in setting up an overseas mortgage?