Overseas property finance

Financing your move abroad
Once you have decided on your move abroad, there are many things to consider. We can give you some guidance regarding property finance.

The first method is to find an overseas mortgage .
When opting for a mortgage from an overseas provider , there will many variables depending on the country. In some countries there is a preference for repayment mortgages, whilst others prefer interest only. There are ,of course, a wide range of interest rates available.
Your overseas lender may be a subsidiary of a British lender, therefore, a similar package may be on offer.
Generally, however, the length of the mortgage will be less with a typical lender abroad. In many countries the maximum length of mortgage will be 10 years.
This will lead to higher repayments . It may be difficult to obtain more than 2/3 of the property value. A big problem for British buyers of property abroad is that it is very difficult to obtain a mortgage from a UK lender, they are wary of lending for such properties. This is mainly because it could be problematic repossessing if the borrower defaults.
Expertise from a foreign lender may be advantageous with regard to local legal matters. There is much to consider legally when buying abroad.
However, France has less stringent rules and a loan to value rate of 85% is not uncommon. Longer periods are often available, similar to UK, around 25 years.
In France, interest rates can be fixed, capped or variable.
This is mainly because it could be problematic repossessing if the borrower defaults. Expertise from a foreign lender may be advantageous with regard to local legal matters. There is much to consider legally when buying abroad.
Many borrowers will use a broker to help find the best deal available. Currency brokers can save the borrower significant money in the process.
In France, when applying for a mortgage, the documentation necessary is as follows;
Last 6 months bank statements,
P60,
If self employed ;an accountants letter indicating tax paid plus 3 years audited accounts.
Certified true copy of passport
Proof of address identification
French bank account details
Property documentation

And of course, a completed mortgage application form.
Expertise from a foreign lender may be advantageous with regard to local legal matters. There is much to consider legally when buying abroad.


A second way to raise the required finance could be to remortgage your existing UK home and release any equity there may be. Certainly this is less viable after recent drops in UK property values, but it is still worth investigating. Naturally, as UK property values increase this method will be more favourable.


Finally, you could consider in-house finance from a developer/housebuilder abroad, assuming you will be buying a new build property.