Without doubt, everyone wants to live a better life. And many Brits find the good life in places other than their hometown. As such, there is an increase of UK residents looking for overseas properties in the Americas, Australia, Europe, South Africa and other parts of the globe. These migrants are drawn by the good standards of living, job opportunities, fascinating environment, great climates and rich cultures. Others are simply on the lookout for a good retirement home.
While there are some who are lucky enough to have built and saved for the purchase of these properties, the majority depend on acquiring an overseas mortgage often available through various financial institutions.
Here are several tips that can help you obtain a mortgage abroad:
There are different strategies by which you can acquire an overseas mortgage for buying a property abroad. Initially, you can remortgage your present home or property to fund the payment or deposit for the property abroad. Alternatively, you can apply to a high street bank offering mortgages for foreign properties. There are also specialist brokers that can provide an alternative source of funding.
You can apply to banks that offer mortgages for specific countries. For example, Spanish bank Santander may lend you for home purchases in Spain. Lloyds TSB and Barclays likewise offer lending for people who wish to purchase properties in Western Europe as well as Dubai and South Africa. You can check whether you qualify for their overseas mortgages terms. Because of their reputation in this field, many prospective buyers choose them as the initial financial option.
If you are looking for exotic, smaller countries, you may have a hard time looking for mortgages as mainstream banks do not normally offer loan for these properties. You may find developers will often offer some kind of financing for these.
Be familiar with the laws in the country where you wish to buy the property. Every country has different legislations that apply for non-citizens. To avoid any legal problem, it is best to understand the rules that govern the country. It would also help to learn about the local real estate market, house prices, rental prices and land acquisition procedures before foraying into overseas mortgages.
Although high street banks are generally under the FSA, not all international mortgage brokers who lend overseas mortgages are. Thus, if you face any problems in the future you may be able to file for recompense. Be sure to check with the financial institution whether they are covered by the FSA rules before finally signing into any deal.
- Like in any other high value purchase, make sure that you exhaust all possible options available to you to get the best deal on offer. Look around different financial institutions and enquire about the options they offer. The Internet offers a rich resource where you can find a wide variety of mortgages abroad. Be sure to examine the terms and conditions that come with each individual mortgage plan.
Finally, and most importantly, you need to consult family, friends and colleagues who may have taken out an overseas mortgages in the past. These reliable people can help you sort out the different options that worked for them.