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How do Overseas Mortgages Work?

Overseas Mortgage lenders usually base their lending decisions upon what they call a debt to income ratio. They allow a certain percentage of your disposable income and this must cover any debt payments you make including mortgage payments, credit cards or loans.

All income must be provable either by way of pay slips if you are employed or accounts if you are self-employed.

Like UK lenders, overseas lenders will have a maximum percentage that they will lend against a property value, this varies from lender to lender and country to country.

You will need a solicitor to carry out conveyancing on your behalf, it is extremely important to use a solicitor who is familiar with the country you are buying in and is independent.

It is important to get professional advice when borrowing overseas, to ensure you get the right product for your circumstances.

What paperwork do I need to submit an application?

You will be required to provide a number of documents to any overseas lender. They do not generally offer non-status loans or loans based on limited information. The list below covers the bulk of the information they will require.

• Passport
• Proof of Address
• Last 6 Months Bank Statements
• Last 3 months pay slips
• Last P60
• Last two years accounts if self employed
• Proof of mortgage/rent payments

What if I intend to pay cash to finance my purchase?

Have you considered the tax implications of paying cash for your property? If you are planning on renting out your property then mortgage interest may be tax-deductible item. It may be more advantageous for you to keep your savings and use mortgage finance. If you are planning on living in your property then there may be tax advantages of having a mortgage. This depends on the country you are buying in.

Why should i use a mortgage instead of selling my house in the UK?

If your house doesn’t sell quickly how long are you prepared to put your life on hold? Had you considered the benefits of letting your main residence property? A short term mortgage may allow you to proceed with your purchase while other matters are being resolved.

I don’t own a property in the UK can I get a mortgage?

Yes you can get an overseas mortgage providing you have a sufficient deposit. .

I’m self-employed can I get a mortgage?

Yes providing you can provide business accounts or recent tax returns. .

I’m on a pension can I get a mortgage?

Yes as a retired person you cannot be made unemployed and your income isn’t reliant on whether you’re healthy enough to work. You need to be aware that many lenders have upper age limits on their mortgages and you will need advice on which lender to use and how long you can have a mortgage for.

My bank said no so why would anyone else lend me the money?

Every lender has a different set of criteria for each client. Your bank can only offer its own products, whereas our advisors research the market to find an alternative lender.

I want to keep my home and rent it out, is it possible?

Yes our advisors can recommend the best buy to let deal for your property and they will also discuss the implications of this in relation to taking a foreign mortgage.

My existing mortgage deal has penalties if I move away. How can you help?

Our advisors can discuss the options of a further advance with your existing lender or a secured loan.

I already have a financial advisor, Is that ok?

Does he specialise in overseas mortgage finance? Is there any reason why you wouldn’t value a second opinion? Our advisors have access to overseas lenders that a UK mortgage advisor may not have contacts with. We are always happy to work in conjunction with your existing advisor should you want us to.

Surely going straight to a bank would be better and cheaper?

All lenders have different criteria. We know what these are and can choose the correct lender for your circumstances.

I have had credit problems. Can I get a mortgage?

It will depend upon your individual circumstances. Overseas lenders generally like to see a clean credit history.

How quickly can I arrange the finance?

Our advisors will discuss your requirements over the phone and will then complete a fact find which will determine whether you qualify. If you do, we will then confirm what deals are available and the associated fees in writing. Once you are happy to proceed then we can submit your application and get a decision from the bank. As we already know the banks criteria, we will only be sending applications that are likely to be agreed. Typically it will take around 8 weeks from our initial contact to when you receive your mortgage offer.

What will it cost me?

Our advisors will always look to obtain the best rate with the lowest fees depending upon your requirements and circumstances. Before you agree to proceed you will be able to make an informed decision based upon written details of the proposed mortgage.

What should I do next?

Please contact us by e-mail or phone, or click “callback ”and we will contact you.

It is best to get advice as early into your buying process as possible. We can tell you if you qualify for an overseas mortgage and how much you are likely to be able to borrow.

With this information you can approach real estate agents confident that you will be able to buy your dream property.