International Mortgage Quotes

International Mortgages

According to a 2004 survey by the Prudential, upwards of 45% of British people have considered retiring abroad. That fact alone, even given that only a small percentage of those aspirations may ever be finally realised, indicates a very large market indeed. With the upsurge of low-cost competitive air travel providing easy accessibility to most countries of the world, it is hardly surprising that the expatriate communities continue to grow, especially in those warmer climates where living costs tend to be cheaper and property prices are so much lower. And it is as a natural response to these indicators, that a whole mortgage-related industry has risen up to meet the demands of those keen to invest in the foreign and international property market.

The methods of securing finance for the purchase of a foreign property are intrinsically the same as for buying property in the UK. The mortgage, which may be from a UK lender or from a lender in the country of purchase, must be secured against the property. Another approach may to be to free up the equity of an existing UK home or property, and, using a re-mortgaging facility, apply this balance to fund the purchase of the overseas property. Other mortgages may offer up to 95% LTV, or repayment on an interest-only basis.

There are also offers of Buy-to-Let mortgages and tailored Expatriate Mortgages. Some companies even offer Foundation Mortgages for higher-income earners, as well as mortgages especially designed to meet the requirements of specific countries. In fact lenders’ options can be as variable for buying property abroad as the range of mortgages offered on UK properties. The mortgage can also be arranged in either sterling amounts or in the currency of the country in which the purchase is to take place.

In the better established European countries favoured by expatriates, such as France, Spain and Portugal, more financial opportunities are likely to exist simply because of the lenders’ greater experience of property dealing in these regions. But there are organisations specialising in providing mortgages and mortgage advice for the more distant continents of America, Australia and Asia, in fact worldwide.

But, as with any major financial transaction, there are inherent dangers of which the purchaser must be aware. For the UK prospective-buyer, safeguarded to some extent by the well-regulated workings of the domestic financial market, there are many more factors to be taken into consideration. Apart from risks of political instability in a particular region, fluctuations in exchange and currency rates and a lessening of enforced quality control in the actual construction of the buildings, there are the legal requirements of each individual country, which may differ enormously from those in the UK, to be carefully considered.

And it is absolutely essential that the laws of the country regarding property ownership must be thoroughly understood. It is therefore suggested that before embarking on international property speculation, sound professional help and guidance be sought from a reliable and experienced source.