We specialise in offering mortgage advice to British expatriates and foreign nationals purchasing property worldwide, whether this be for main residence, second home or investment. We act as mortgage brokers to find you the most suitable and competitive mortgage program.
When considering the purchase of a property overseas, preparation is the key. The first thing that should be established is the budget available. Deposits required, current and future exchange rates, total cost of finance, legal fees and tax obligations, should all be calculated before viewing any potential properties.
Mortgages can be pre-approved well in advance, and this could save both time
and money. This can be done by going to Apply now or Contact Us. One of our representatives will contact you within 24 hours.
Our Buying Guides will give you a breakdown of the whole process of purchasing a property in your chosen location, who is involved and the timescales.
Many sellers will not accept an offer, unless it can be proven funding is in place or has been Pre-Approved. For the purchase of a re-sale property, the closing date will typically be set at 30-45 days after the signing of the sales contract, and some contracts may impose financial penalties for late closing/completion. Appointing a lawyer, who is qualified in local law, may pay dividends at this stage.
Mortgages on property abroad are normally available to a maximum of 70% loan to value and for up to 30 years, although there are exceptions to this. There are not normally age restrictions on mortgages on US property, however for some other countries the term may be to age 70 or 75. Mortgages are normally based on affordability and suitable proof of income will be required. As a rule, the debt to income ratio should not exceed 36%, although there are exceptions to this. For some loans, limited documentation is required. To see current lending criteria, please select the specific Continent tab on the main menu.
The mortgage secured against the property, can be in local currency, or in some cases multi-currency mortgages are available. The currency in which the mortgage is arranged would normally be determined by the currency of the income being used to fund it. A qualified representative will go through the options and advise on which is the most suitable mortgage program.
A local bank account will normally need to be opened, to enable the payment of local, taxes, utility bills etc. Some lenders also require six months mortgage payments to be held in your account. You may also be required to have your deposit and closing costs seasoned. This means that you will need to show where the funds have come from, usually covering the last 60 day period.
Exchange rates can greatly affect the cost of an overseas property purchase. Deposits and closing fees would normally be converted from your home currency to the currency of the country you are buying in. Registration with a Currency Exchange company would be prudent, as funds can be booked up to 18 months in advance. This is particularly useful should the purchase be off-plan, as it allows these cost to be “fixed”.
Closing fees are costs associated with the purchase, such as taxes and insurances, and would initially be listed on a illustration. These will vary depending on where you buy.
A lawyer would normally cost around one percent of the purchase price and should be seriously considered, especially if the purchase involves a number of parties, such as family members.
Finally, we come to Tax Obligations, which may be payable not only on income, but also on capital gains. Mortgage interest and other costs can usually be offset against this, however a tax advisor should be consulted, or you could employ the services of a local accountant.
For a free Mortgage Pre-Approval, please go to Am I Eligible or Contact US pages.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. Be sure that you can afford the repayments before entering into any credit agreement. Any quotation supplied is not an offer of mortgage and may be subject to a change without notice. Exchange rate movements may increase the Sterling equivalent of your liability under a foreign currency mortgage.