Overseas mortgages 'can be tricky'

First-time buyers hoping to quickly increase their equity could consider buying property overseas, but will still need a cash lump sum in order to have a foreign mortgage approved.

That was the warning issued by BuyAssociation this week, a property website that specialises in providing advise to Brits looking to invest in overseas markets. The website said that, while it would be possible for first-time buyers to secure an overseas mortgage, there would be challenges.

Paul Collins, property editor at BuyAssociation, explained: "It''s quite possible to get mortgages on overseas properties. Often they take longer to get the mortgages – particularly in emerging markets.

"And you will find in a lot of these markets that you won''t be able to get 100 per cent mortgages, so again there is still the issue that you will need some form of cash deposit to be able to actually do that."

A recent study conducted by National Savings & Investments found that 84 per cent of 18 to 30-year-olds believe purchasing overseas property is a more viable option than investing in the UK housing market.

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