Published 16th August 2017
For advice on international mortgages overseas, whether you’re looking for a buy to let, holiday home, commercial, or residential property, get in touch and one of the overseas mortgage experts will take you through things. There are of course many countries in which it is possible for UK, citizens, expats, and foreign nationals to purchase property abroad, in fact there’s over 50 countries. Realistically there are only several main countries in which most people want to buy that the specialists we work with handle every day, which are:
It’s important to bear in mind that every country does things differently, and buying property in certain areas can be a very tricky and often strange experience. No-one wants to be taken for a ride, or buy off plan and end up owning a share of a building site like some of the nightmare deals you see on TV. For this reason, getting international mortgage advice from an adviser who knows how it all works is essential. The various factors most lenders will be taking into account as to whether you will be approved or not are:
Lenders will need to establish your income to determine if you can afford the repayments on the mortgage you are taking. They will also want to know you have an income even if the property is to be let out as an investment. Affordability models are different lender to lender, as well as country to country, so giving clear guidance online here is near impossible!!! Make an enquiry to establish how much you can borrow on an international mortgage in another country.
Most international lenders require borrowers to have clean credit. Although you are not at all likely to have a credit history in the country you;re buying, many will want to see evidence of your history from where you have been living. If you have mild adverse credit such as a few late payments or small defaults it still may be possible however its likely you’ll need a larger deposit.
Debt to income (DTI)
Again, every lender will have a different model when it comes to establishing affordability. Internationally many lenders like to determine the debt to income ratio and certain trends are clear, for instance in France the DTI is 33%. This means that 33% of your net monthly income must be large enough to cover any monthly commitments you have such as mortgage or rent, cards and loans, ON TOP of your proposed new mortgage payment.
Country of Purchase
As mentioned, where you purchase makes a huge difference to a) the type of mortgage you can get, b) the criteria of the lenders, and c) the house buying process in general. There are many countries that don’t even allow you to buy property in (for instance Thailand where you need to be, or married to, a Thai National). The buying process in Spain is very different to the UK or USA. It’s important to use someone who knows this process and can guide you through (it also helps if they speak the language!).
If you’re ready to make an application or if you just have an enquiry about the house buying process abroad, please fill out our quick form below and an expert will be in touch ASAP. If you require help immediate assistance please call 0800 304 7880.