When it comes to buying a property overseas, there are many factors you’ll want to take into account to make your purchasing experience as simple and stress-free as possible.
It’s essential to ensure the right funding, understand and adhere to local rules and regulations, and enlist the help of an experienced, well-respected financial advisor who possesses the required local knowledge to put your mind at ease.
Doing any one of these things is liable to make the process of purchasing property overseas easier to navigate, enabling you to move into your dream property quicker while preventing pitfalls in the future.
Of course, when it comes to financing the purchase of a property overseas, cash upfront payments are not always the most feasible finance option.
If you truly want to invest safely when buying a property, then you should always look to secure an international mortgage solution, such as those financed by the international mortgage advisers we work with here at Blacktower.
What is an international mortgage?
An international mortgage, also known as an expat mortgage or overseas mortgage, is exactly as it sounds. These are mortgages specifically provided to expats in order to help them finance buying a property overseas.
Overseas mortgages can be used to buy permanent property overseas now or during retirement, holiday homes, or as a buy-to-let investment to act as another source of income.
While the prospect of applying for an overseas property mortgage might seem intimidating, there are numerous specialist overseas mortgage lenders in the UK and abroad who can offer financial services, provided you can meet the required criteria.
Important things to know about applying for an expat mortgage
First and foremost, you should be aware of that there are two main ways to apply for an overseas mortgage, either of which might be suitable for your needs. These include:
- Financing your mortgage with a dedicated international mortgage provider, such as those we work with here at Blacktower.
- Financing your mortgage through a UK-based mortgage lender.
It’s important to note that, due to the variations in rules and regulations when buying property overseas, the process of applying for an overseas property mortgage may take longer than initially anticipated.
Unlike in countries such as the UK, it’s not uncommon for international mortgage lenders to focus on the size of your salary, rather than the amount of your deposit, when it comes to the size of your mortgage. This is mainly to ensure you can afford any expat mortgage repayment costs.
On top of this, many countries have strict rules when it comes to debt and applying for mortgages. In many cases, if your total debt is greater than a certain percentage of your salary, you may be denied an international mortgage.
You should also be aware that it may take overseas mortgage lenders longer to assess if you have bad credit, and may require you to pay a larger, non-refundable deposit, though this will be dependent on the country and their laws surrounding buying a property.
To find the best possible expat mortgage solutions, it’s suggested you work with an experienced mortgage broker with clear experience in managing other mortgages for expats.
An experienced mortgage broker will be able to:
- Find you a mortgage with the best interest rates.
- Handle your mortgage paperwork.
- Negotiate the terms of your mortgage deal.
- Arrange any required transactions.
- Thoroughly assess and vet any contracts on a legal level before you sign.
Is there a difference between mortgages for owner and investment properties?
When it comes to expat mortgages for owner and investment properties, there is little to no difference between seeking an overseas property mortgage for either property type.
While countries like the UK and USA will offer buy-to-let schemes to facilitate investment purchases, the majority of countries do not have similar schemes. Many also don’t account for existing or new rental income when assessing affordability.
This can cause problems for clients who have an existing investment portfolio containing other mortgages, but should in no way deter you from seeking further property investments.
By working with experienced mortgage brokers, such as those providing international mortgage solutions with Blacktower, you’ll have a safe and secure way to navigate this issue.
How do I repay an international mortgage?
Overseas property mortgages, particularly in Europe, tend to be repayable in either variable or fixed repayment rates, unless you’re making a purchase of over €2 million.
If you’re making an investment of this size, then it’s likely that Interest only options may be considered.
Locations available for this service
We work with expats looking to various locations, including:
If you want to know more about moving to or finding mortgages for expats in a specific country, why not read through our relevant location guides?
Here at Blacktower, we work with those offering professional international mortgage solutions to assist you in the purchasing or refinancing of property overseas, including a wide range of locations from Europe to the USA.
Whether you are looking to buy for investment, work, holidays, or retirement, we have the expertise and knowledge to arrange the most suitable mortgage for your personal circumstances.
We offer a tailored service that is specific to each client’s situation, with the minimum and maximum loan amount being determined on a case-by-case basis, all subject to your overall personal financial profile and property valuation.
Whether you’re just beginning your search, have already found your dream property, or wish to carry out improvements to an existing overseas property you already own, we’re here to equip you with the advice you need to make decisions that safeguard your future.
Contact us below to arrange a free overseas mortgage assessment or to enquire further about any of the services mentioned:
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