International mortgage brokers – We are experts in overseas mortgage brokerage
When we talk about getting a mortgage, getting a house or an apartment, and settling down, most often, we are thinking about buying somewhere close by – or at least in the same country.
What if you grow tired of living in merry old England and fancy relocating abroad? Do you decide to buy a second home in your favourite holiday location? Or do you want to buy a place overseas to rent out?
Getting an overseas mortgage to help you buy property abroad can prove a little more complicated; do you need to borrow from international lenders, or will national lenders work internationally? This is where seeking help from an international mortgage broker can help.
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What are international mortgage brokers?
A mortgage broker can help walk you through the headache-inducing mortgage application process and find the right deal, with the best interest rates, for your financial situation.
An international mortgage broker, therefore, is well versed in arranging mortgages for clients looking to purchase foreign property. An experienced international mortgage broker like Loan Corp will be able to find the mortgage you need for that international property purchase.
When you submit a mortgage application with Loan Corp, you will be automatically matched with one of our helpful brokers who is experienced in facilitating international mortgages.
Every country has its own rules regarding national and international property purchases, but an expert broker knowledgeable about the property laws of the country in question will be able to present you with tailored advice and save you a lot of time and confusion.
The difference between mortgage brokers and mortgage lenders:
If you are new to the wonderful world of mortgages – national or international – there can be a lot of confusing jargon to get your head around. First, you should know that a mortgage broker is not the same as a mortgage lender.
Mortgage brokers
A mortgage broker is a person who introduces the buyer (or mortgage borrower) to the person lending them the money. A broker does not use their own money to front the mortgage but instead functions as an intermediary, using their experience and connections to find the right lender for each customer.
A mortgage broker will better understand what funding you might be eligible for, as well as who the best lenders are for your situation. For international buyers, a mortgage broker such as Loan Corp has expert knowledge of specific mortgage criteria pertaining to overseas properties.
Mortgage lenders
Otherwise known as the person who puts up the money. Mortgage lenders are usually widely known financial institutions or dedicated mortgage banks. Most of the high street banks we are familiar with will have a mortgage team, but they may not necessarily offer international mortgages.
You might be required to work with international lenders when purchasing overseas property. Since the lender sets the eligibility requirements and the interest rate, your best bet is to let a mortgage broker figure out the most efficient deal for you.
Difficulties of applying for mortgages in a different country
Some countries are remarkably easy to purchase property in, with a clear-cut international mortgage service, and others are not.
Depending on the country you seek to buy your overseas property in, some of the potential pitfalls you might encounter include:
- Age restrictions. Certain countries place upper age restrictions on mortgages.
- Construction. Does your mortgage allow for construction on your overseas property?
- Scams. Many people are determined to get that property overseas and walk right into a scam. Working with a broker will make sure everything is above board.
The benefits of using an international mortgage broker
Unless property is your business, applying for a mortgage and figuring out the monthly repayments is a real hassle. Add to that the stress of finding the right mortgage, ensuring you get the best interest rates and working with a lender who is not taking advantage of your inexperience – who needs that stress in their life? A mortgage broker can sort this out for you.
Applying for international mortgages is twice as tricky – more so depending on the country you are looking to get your overseas mortgage in. This is because every country has specific rules and eligibility criteria for foreign nationals who want to purchase property.
A UK-based overseas mortgage broker will already know the rules and regulations, be able to explain it all to you and broker overseas mortgages on your behalf.
Your credit file
Going solo and managing the mortgage yourself might seem like a smart way to save some money, but unless you know what to look for, you might inadvertently cause damage to your credit file.
Look at this this way: every lender you approach will be recorded on your credit file, so if you approach many potential lenders in your search for the right one, all of them will be recorded.
Then, say, you find the right lender, but they take one look at your file and see all the other lenders you approached, which sets off alarm bells. Even if your search has been innocuous, lenders are wary of customers with too many inquiries on their file.
An experienced mortgage broker will quickly find the ideal lender for your overseas property without marking your file.
Financial protection
Seeking professional advice from a UK-based overseas mortgage broker before purchasing your property abroad will ensure that you have the right protection from regulatory bodies, including the Financial Conduct Authority and similar.
Currency exchange
Another aspect to keep in mind is the currency exchange rate. Fluctuations in the exchange rate can increase monthly repayment costs, and if you are unfamiliar with the foreign currency, you might not recognise the extent of the shift until too late!
An overseas mortgage broker can help you to secure a multi-currency mortgage which can provide a little more stability for an initial upfront cost.
You get a better deal
Not only does a mortgage broker have the experience and the contacts to find you the right lender, but they are also likely to be better received by a foreign lender. Our brokers will know what to look for and ask; ultimately, a broker will secure you a better deal.
FAQs
Can I use a UK mortgage internationally?
No.
Even if you have an existing mortgage or qualify for a mortgage here in the UK, you must apply for a dedicated international mortgage to buy property abroad.
Many large UK banks offer mortgages for overseas property purchases, but you can also use a foreign lender in the country you are moving to.
How much is an international mortgage deposit?
A national mortgage typically demands a minimum mortgage deposit of 5% but for an international mortgage, expect to pay up to 40% of the property value.
Mortgage deposits are non-refundable, so working with an experienced broker can help to make sure you have covered all your bases before parting with a large chunk of your savings.
What documentation do I need?
It’s a lot like a national mortgage, just more so. Depending on the country you are moving to, you are likely to be asked for:
- A passport
- Any existing mortgage payment plan
- Proof of current employment
- Proof of current address
- Recent bank statements indicative of your spending habits
Can you get a mortgage to rent out a property overseas?
Yes, this is called an overseas buy-to-let mortgage. These are popular since many people buy property abroad with the intention of renting it out.
Overseas buy-to-let mortgages tend to have a lower interest rate and are often easier to obtain since lenders see the money you will make from letting out the property as a stable investment property. Unfortunately, these mortgages are not protected by the Financial Conduct Authority.
Conclusion
Mortgages can be a real pain in the neck, but international mortgages are in another league. Since all countries have their own criteria, rules and regulations, there is no easy DIY, one-size-fits-all approach to buying property overseas.
Using a UK-based international mortgage broker can take the stress out of buying your new home and ensure that your finances are safe and protected every step. As a third-party intermediary, a mortgage broker can offer advice without a vested interest and make sure you sign up with the mortgage lender who is right for you.
Contact us now as international mortgage brokers for access to all the best overseas mortgage lenders in one place