Foreign Mortgages for Oversees Property

In the past 10 years, UK house prices have increased by nearly 200%. Given the difficulties and costs of buying a house in the UK, many have looked oversees for the potential of getting on the property market.

Popular destinations for buying an oversees property have included countries such as Bulgaria, Poland, Romania, Czech Republic and even smaller countries like Albania and Turkey.

There is of course considerable risk associated with buying abroad, but, at the same time there is greater potential for capital gains.

When getting a mortgage for an oversees investment, many prefer to take out a mortgage from a UK financial institutions.

Big banks like Lloyds TSB offer specialist foreign mortgages (which include useful options such as lending upto 5 times income) - Foreign mortgages at Lloyds TSB. Their mortgages come with a choice of repayment options plus options to borrow in several different currencies.

Another specialist mortgage  company for oversees purchases is Conti Finance.

Getting A Mortgage Oversees

Another alternative is to get a mortgage in a foreign company. For many of the popular destinations like Florida and Spain, banks are willing to lend mortgages in Sterling to attract custom for the lucrative English buyers market.

Note: Getting a mortgage oversees may be particularly beneficial if interest rates are lower in that country. At the moment this is true for both EURO zone interest rates and the US.

 Remortgaging in the UK

Another option to raise a mortgage for an oversees purchase is re mortgaging your existing UK property. This enables you to raise cash to use for oversees investment.

• Foreign Finance for Oversees Mortages at Channel 4