Understanding overseas investment mortgages

Are you planning to buy properties abroad? Then, this article is for you.

12:10 23 May 2013

A lot of Britons are thinking about investing in real estate properties in other countries. Some would like to do this so they’ll have holiday homes in other parts of the globe, while others do this for investing purposes.

If you’re one of them, you may want to know more about overseas investment mortgages.

An overseas investment mortgage is available in most of Europe, United States, Greece, Poland, Bulgaria, Turkey, and Cyprus.

Applying for an overseas mortgage is typically the same as doing the whole process in the UK.

Your potential lender will ask for documents, which include proofs of your income. Generally, the lenders would want to make sure that your debt (including the one that you’re applying for) will not exceed 40per cent of your regular earnings.

If you can prove that you can pay for the mortgage, your application will most likely to be approved.

You also have the option to take out mortgage from UK banks. The process will be the same. However, interest rate is more likely to be higher compared to lenders abroad. But this option offers convenience.

As you might already familiar with the process in the UK, confusion may not be a problem. Also, you do not have to go to the country where you want to buy properties every now and then.