If you are considering purchasing a property abroad you will probably need a mortgage for your overseas property. Every country has its own mortgage and lending rules and in some cases it may be better to secure a mortgage with an overseas lender; in other cases you may get a good deal from a UK lender. Some countries require you to form a company in order to buy property, and there are also country-specific rules about how much deposit you would need to put down.
Because of the complications surrounding mortgages for overseas property, it is essential to get overseas mortgage advice from an expert in this field.
How much you can borrow will depend on your existing liabilities. Typically, your entire outgoings such as rent, debts and bills – as well as your foreign mortgage repayments – must not exceed 40% of your net income. Although this sounds like a low 'allowance', if you are sensible with your UK rental and other outgoings and head for a county where property prices are low, the mortgage payments will not be onerous.
Be aware that interest rates for mortgages on overseas property are sometimes higher than in the UK and often variable. Some countries, do not offer mortgages to foreign nationals at all.
Before signing anything, it is crucial to seek independent advice and enlist the help of an English-speaking lawyer. There are companies that will arrange an overseas mortgage on your behalf and property agents that, for a percentage fee, will hold your hand through the entire buying process.
Other mortgage guides, advice and useful pages:
Mortgage Comparison - First Time Buyer Mortgages - About First Time Buyer Mortgage Advice - First Time Buyer Mortgage Brokers - Buy to Let Mortgages for First Time Buyers - Remortgages for First Time Buyers - Shared Ownership Mortgages - Help with Mortgages for First Time Buyers - Mortgages for Parents of First Time Buyers - Shared Appreciation Mortgages - Shared Equity Mortgages - Joint Mortgages - Financial Advice for First Time Buyers - - Request First Time Buyer Mortgage Advice - Find your First Property - New-Build Gifted Deposit Deals - Best First Mortgages Comparison Table
Features, advantages and disavantages of specific first time buyer mortgages:
100% Mortgages l Cashback Mortgages l High LTV Mortgages l Graduate Mortgages l Professional Mortgages l Mortgages with Parents l Guarantor Mortgages l Family Offset Mortgages l Mortgages with Friends or Family l Mortgages at University l Rent a Room Mortgages l Affordable Mortgages l Interest only Mortgages l Part Repayment Part Interest Mortgages l Interest-free Start Mortgages l Shared Ownership Mortgages l Poor, Adverse or Poor Credit Mortgages l Key Worker Mortgages l Shared Equity Mortgages