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 Overseas Mortgages

Buying a property overseas - be it in Spain, Bulgaria or Barbados - has become an increasingly attractive proposition for UK homeowners in recent years.

Some have sold up completely and moved their entire families to the Costas, whilst others have seen the developing European property markets in particular as an opportunity not only to have the option of spending time themselves in a sunnier climate with a slower pace of life, but also as an opportunity to make some money from both rental income from and the capital appreciation of their overseas property.

Spain still leads the way as the most popular country for Brits abroad, but France, Portugal and Italy also offer good investment opportunities.  However, for some investors the Spanish bubble appears to be at bursting point and they are looking to the potentially more profitable areas such as Bulgaria for their next ventures.  These emerging eastern European countries are not without risk however, and any prospective purchaser should thoroughly research the buying process and ownership rights in these countries before committing to a purchase.

The popularity of such television programmes as ‘A Place in the Sun’ has given rise to a new generation of wantaway Brits attracted by the seemingly slower pace of life and warmer climate.  Soaring UK house prices have given UK homeowners additional wealth and many are remortgaging their UK homes to release this capital and investing it overseas in a holiday home.  By renting out your overseas property in the weeks that you are not using it yourself you can very often fund most, if not all, of your increased UK mortgage payments. 

Another option, rather than raising all of your capital for the purchase from remortgaging your UK home, is to raise just enough to cover the deposit on your overseas property (this will vary from one country to another but as a general rule is around 25% of the purchase price) and then fund the balance by way of a mortgage secured on the property you wish to buy.  If you are buying in Spain or Portugal, for example, there are many UK lenders that will give you a Euro mortgage secured on your new property.  As European interest rates are currently lower than UK rates this is a cheaper option. 

Buying with a local mortgage in the Caribbean though can be more difficult and more expensive as interest rates are substantially higher than in the UK.

Wherever you are looking to buy, please phone us free on 0800 542 7720 for an initial discussion or click here to complete the online enquiry form. 

The Financial Services Authority does not regulate mortgages on properties Overseas

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.