Overseas Mortgage Brokers and Lenders

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Overseas Mortgages

There are over 275,000 people from the UK already overseas property owners and this figure is set to climb a lot higher in the coming years according to the Office of National Statistics.

Therefore, it is imperative to make the right choice when considering how to finance your overseas property purchase. Overseas mortgage lendersare becoming very competitive so be selective in your choices.

In addition to absorbing the information set out in our Buyers Guides it is most important to study the overseas mortgage broker's facilities available to you as an overseas buyer. We have deveised a guide to help you select the right options when considering applying for an overseas mortgage. Browse through our Mortgage section at your leisure and Contact us if you have any questions.

Overseas Mortgage Brokers and Lenders

For many UK investors, purchasing overseas property has become increasingly popular. Finding the best 'deals' from a UK property is getting harder, so some investors are looking further a-field to find the next big real estate opportunity.

The more familiar territories such as Spain and France remain very popular, but investors are becoming braver and venturing into new territories such as Eastern Europe, South Africa and China to name but a few.

In the UK we are used to a wide choice of mortgages such as 100% lending, Buy-to-Let, Let-to-Buy, self-certification, credit impaired, interest only etc. However most overseas markets are nowhere near as developed or as flexible. You may have wandered down the high street and discovered names such as Halifax and Abbey have lending arms to assist with lending in Spain and France retrospectively, but try to find a high street lender willing to consider a mortgage in Croatia or finance in Dubai and you could be searching a long time!

So should you decide this is the investment for you, how do you finance the purchase? Until recently, many countries were only for cash rich buyers.

If you have equity in your UK residence, you may be able raise money this way to fund your purchase. This however can be quite restrictive particularly if you wish to fund several properties and a bigger problem if you have already used that equity to build a UK portfolio!

Many of the countries local banks have recognized the demand and are beginning to show an interest in lending to UK and other foreign investors. It's not as easy as its sounds however, as these mortgage products invariably have to be created from scratch. Our overseas mortgage partners have been at the forefront of encouraging this lending in areas such as Hungary, Bulgaria and Croatia. Negotiations are often lengthy and frustrating, as many of these countries do not operate at the 'pace' we are used to in the UK, but Rome wasn't built in a day!(they lend there too)

Our Niches We are able to assist you with an overseas mortgage in over 48 Countries abroad. We are particularly proud to be among the first to offer overseas mortgages in Eastern Europe including mortgages in Hungary, mortgages in the Czech Republic, Slovakia, Bulgaria and Turkey with others being added regularly.

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Overseas Mortgage Quotes

Where do you start? Please complete your details at the bottom of this page and one of our specialist advisers will contact you to discuss your requirements.

Approval in Principle For all countries we are able to offer an approval in principle service. We will ask you to complete our confidential information form. This provides us with sufficient information about your finances to advise you of the likely hood of obtaining finance. In some cases we can obtain a formal approval in principle directly from the lender which is particularly comforting for new build purchases where you need to commit to a purchase way in advance of applying for the mortgage.

What happens next? If you wish to proceed, we will send you a full application pack. Any required application forms will be pre-populated with the information you have already supplied. We will supply you with a specific document requirements checklist and additional information and tips about your purchase.

During the purchase Once you have returned you application to us, as well as processing the application, we will provide you with guidance on the whole process. We will monitor your application with the lender closely and provide you with regular updates and explanation of any terms when the offer is produced. We will liaise with your other chosen professionals to help with your understanding of the complexities of your purchase such as buying through a company, residency permits, taxation issues, life cover assignment etc.

Additional Services As with the UK, you will be required to insure the property. Many Overseas mortgage lenders also insist on Life Cover. In some cases an existing plan may be used if it meets the minimum requirements. It is important this issue is not left too late, as you may be unable to complete on your purchase until cover is in place, which can sometimes be delayed by requirements for medical information. Our recommended independent advisers can provide specific advice.

Our Fees Variable but start from £395 on mortgage application and 0.5% of the mortgage (minimum £500) on sucessful completion.

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Overseas Mortgage Lenders

We feature a select few when it comes to reccommending mortgage brokers and lenders from the UK. This can be an easier way to arrange your finance or mortgage requirements before you begin your search. Listed below are some of the advantages to using some of the companies we reccommend.

  • More than 200 residential overseas mortgage products available in over 30 countries worldwide including
    Bulgaria and Turkey
  • Over 10 years of trading and 20+ staff experienced in conducting business with overseas and foreign lenders
  • Fully independent with more overseas mortgage brokers and lenders and more choice
  • Competitive and exclusive overseas mortgage terms
  • In some countries, no final arrangement fee charged by us for organising the overseas mortgage
  • At no cost, can internally pre-qualify your application financially, thereby saving any wasted inspection flights
  • Can save you time and costs (ie: phone, fax and postage) in both exploring and finding a possible lender
  • In-house processing and dedicated underwriting team for each country ? who are fully aware of what
    documentation the lender requires, their lending criteria and how to present the application, which ensures
    a faster mortgage offer
  • The use of our extensive database of other relevant professionals such as lawyers, aware of what documentation
    the lender requires, their lending criteria and how surveyors, currency exchange and offshore
    company formation experts

Differences Between UK and Overseas Mortgages

There are major differences that can be seen between getting a UK mortgage and an overseas loan. It is important to note that the very nature of the market abroad means that everything about it works quite differently from the normal and typical approach that the UK market has adopted. For example, many lenders in other countries in Europe generally do not offer mortgages based on interest only or on the concept of buy-to-let.

They base the mortgage amount on your actual earnings rather than the potential rate you may receive. Consequently, the income multiplier that is all so common in the UK is not typically used in banks abroad. Instead, the affordability model is predominant. This model in turn, relies on the debt-to-income ratio that you have. You need to prove that no more than 40% or less of your income goes into paying debts and mortgages (including the one you are applying for).

By far the most obvious distinguishing difference between a UK-based ! and an overseas mortgage is the currency that the mortgage is to be denominated in. So if you buy a property and get a mortgage, you will be earning in sterling pounds but you will have to pay your mortgage in a foreign currency (USD, euros, and so on).

Advantages of an Overseas Mortgage

Getting an overseas mortgage has considerable advantages. Foreign banks and lenders have become very flexible when it comes to lending to UK buyers. This is largely part of their strategy to draw in more investors and property buyers. As if that was not enough, interest rates in the Euro zone for example are sometimes lower than rates in the UK.

Overseas mortgages are effectively back-supported by the foreign property market. So if you buy a property in Spain on a Euro mortgage, your interest rates will likely be based around the rates in the Euro zone as set by the European Central Bank. Today, most of these rates are less than those offered in the UK. Considering this and depending on the amount of loan, you may have a big difference in your monthly amortization and repayment.

Decision in Principal Application

Disadvantages of an Overseas Mortgage

The main disadvantage that can be discouraging about overseas mortgages comes from the fact that it uses another currency. This adds a relatively thick layer of risk into your investment. With this set-up, you earn in sterling pounds and pay in another currency.

The sterling pound equivalent of your debt in another foreign currency will surely fluctuate with time as the exchange rates go up and down. If you are unlucky, and the rates move against you, the sterling equivalent may become so low that you actually end up with so much more debt than you originally had.

Another disadvantage to be pointed out with getting an overseas mortgage is the physical and communication barrier that exists. If you buy a property in Cyprus, for example, you would need to visit the country at least once to arrange your paperwork or to personally attend to matters regarding your mortgage. (You can ask a lawyer or solicitor, but nothing matches being fully aware.) Also, in countries where only few people can speak good English, communication will prove to be difficult.

There is definitely no room for miscommunication in mortgage application and processing, either oral or written. You will need to demand all transactions and documents be written in English. Which one is better? One can not say that getting a UK mortgage is better than getting an overseas mortgage. What is good for you may not be good for another. While UK based mortgages are generally easier to proceed to (considering how used you are with the system), the rates can be very slightly higher.

On the other hand, overseas mortgages may prove lower in terms of interest rates, but the additional procedures, permissions, and other complicated systems may take more effort, time and money on your part. The best thing to do is to consult an independent specialist who can offer you objective advice on your options considering your current circumstances. Remember that all decisions about investing abroad should be informed and wise, and more importantly, realistic.

Decision in Principal Application

Contact Us For a Quote

Contact us with your requirements to receive a quotation on mortgage facilities from over 8,500 UK providers or a select number of overseas banks and mortgage facilitators.

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