A Guide To Buying a Property Abroad
Foreign Currency Mortgage
With an increasing number of Britons looking to buy a holiday home abroad, it comes as no surprise that over five million at any one time are considering various options. A recent survey carried out by a high street lender confirmed that one in eight British people over 50 years old planned to retire abroad by 2010. Financing the dream is a question that needs answering.
Borrow or Buy?
It is becoming increasing easier for British buyers to obtain mortgages abroad. In countries such as Spain, France, Italy, Portugal and Bulgaria it is possible to arrange finance up to 75-80% of the property value (country dependent). The advantage is it could offer the borrower lower interest rates payable than in the UK. This becomes more attractive if the property is being used for rental investment income.
The mortgage options
The simplest option by far, assuming you have sufficient equity in the property, is to remortgage your home in the UK. You can then use the cash to buy your overseas property outright. Remember, however, that your home will be at risk if you can’t keep up with the mortgage repayments.