By arranging a mortgage overseas, with a mortgage lender in the country where your property is located, you may be able to take advantage of the lower rates of interest charged in those countries. For instance European mortgage rates, typically 1.5% above the European central bank's base rate, attract lower monthly payments than the same loan secured on a property in the UK. However, not all mortgages abroad enjoy a lower mortgage rate than in the UK. Hence it may be worthwhile exploring the option of mortgage equity release on a UK property so that you can purchase the overseas property with cash and avoid the complications of a mortgage overseas.
For advice on mortgage equity release for the cash purchase of an overseas property please complete our UK Remortgage form. Note: Your UK home will be put at greater risk if you take this route and may be more costly in the long term compared with arranging a mortgage overseas.
Since arranging a mortgage overseas is more difficult and time consuming than in the UK, overseas mortgage advisors are likely to charge an initial set-up fee of between £145 and £295 depending on the location of the overseas property and the buyer. If applicable, this fee would be payable only after the applicant has been 'pre-qualified' by the advisor and a quote for an overseas mortgage has been issued (with no obligation).
An overseas mortgage arrangement fee is likely to be waived (or minimal) in the following countries: Bulgaria, Czech Republic, France, Greece, Italy, Monaco, Portugal, South Africa, Spain, Turkey and parts of the USA. However, final arrangement fees (normally between 0.65%-1%) will be payable for overseas mortgages in Andorra, Australia, Canada, Caribbean, Cyprus, Ireland, Israel, Malta, New Zealand, Poland, Switzerland and other countries.
To establish contact with one of our specialist overseas mortgage advisors please fill out the form on our Overseas Mortgage Advice page.
See also: Mortgage Advice, Mortgages, Mortgage Lenders, Mortgage Comparison
