Overseas Mortgages

Sources of Finance

Once you have worked through your finances and produced a rough estimate of what an overseas property might cost, and thought about how the rental earnings might help it to earn its keep your next step should you need to do so is to work how to best borrow the money you would need to fund the purchase.

Remortgaging

Remortgaging is likely to be an attractive option if you have built up substantial equity in home and wish to use that.

The disadvantage is that it puts your main home at risk if for some unforeseen reason you cannot make the payments.

Separate mortgage overseas

The alternative to remortgaging is to take out a separate mortgage secured on the overseas property. This can be done through a foreign lender or a UK based broker who specialises in securing mortgages from foreign banks - or apply for a non - sterling mortgage from from a UK lender. Either way, remember that your repayments would fluctuate not just according to mortgage rate, but also due to the exchange rate when you transfer your payment into the local currency.

Taking this approach can be worthwhile if loan rates in the country you are borrowing in are lower than those in the UK.

Overseas mortgage rates West Europe