International Mortgage Guide

Many of our expatriate readers contact us directly for information about international mortgages which will allow them to purchase property in a jurisdiction other than the one in which they live for example or allow them to buy ‘back home’ when they are living overseas as an expat.

This is our international mortgage guide for anyone looking for an offshore buy-to-let mortgage, an equity release product, a mortgage to allow them to buy ‘back home’ whilst living abroad, home finance to buy property abroad or an international mortgage to enable them to save tax.

Some of the best international mortgage deals around are available from the high street lenders – the likes of HSBC offshore, Lloyds TSB and even the Bank of Scotland are in the offshore and international mortgage provision market and constantly work in competition with each other to attract new customers and to offer the most competitive solutions. 

Currently the Bank of Scotland are attempting to win a large portion of the multi million pound offshore mortgage market and are aggressively working to make their products as competitive as possible.  Recently Bank of Scotland International which is part of the Standard and Poor’s long term AA credit rated HBOS group, dramatically cut interest rates, early repayment charges and set up fees in a bid to attract more customers to review its international buy to let and fixed rate mortgages. 

Bank of Scotland also have a very flexible attitude to mortgage solutions and can create finance products suitable for those wishing to own their international real estate in trust or within a company structure for example.  They also offer taxation saving advice to customers who may be in a position to save tax through the utilisation of an offshore home finance solution.

HSBC Offshore has a broader product base than Bank of Scotland International – they are also known as ‘the world’s local bank’ because they own so many smaller international banks and have a presence on many high streets throughout the world.  For this reason they are also a good offshore bank to approach for those living abroad wishing to buy in the country in which they are living.  Chances are if you’re living in Spain or Cyprus, Australia or America for example, HSBC will have a close affiliation with a local bank which can potentially provide you with the mortgage you seek.

In terms of their off the shelf offshore and international mortgage solutions you can chose foreign currency mortgages, buy to let mortgages, property purchase schemes for those living overseas who wish to invest in UK property, and equity release schemes for those with property assets in one country but who reside elsewhere.

In terms of actually saving income tax and possibly even inheritance tax with an offshore mortgage solution, those who are UK resident but non-UK domiciled or UK resident but non-UK ordinarily resident for tax purposes or non-UK resident but UK domiciled or finally non-UK resident and non-UK domiciled certainly have the potential to benefit from a truly offshore solution from an international mortgage provider.  Please note that not everyone who falls into these categories above can benefit from taxation savings however - therefore it is imperative to seek taxation and specific mortgage advice from a specialist before signing up to any particular mortgage provider and this article does not constitute advice.