Mortgages for Overseas Property

Having covered getting a mortgage in Australia, Bulgaria, Canada, the Czech Republic, America, France, Italy, Portugal, Spain and Turkey in our article ‘Overseas Mortgage’ it’s time to cover essential information about mortgages for overseas property in some of the lesser known or more unusual locations such as Belize, Jamaica, Malta and Monaco.

If you want to buy property abroad as an investment, as a new home or as a place to holiday and you need to raise finance, this article covers the options available to you.

The facts in this article are based on general information supplied by a cross section of lenders and brokers and it is supplied for information purposes only – if you want us to refer you to a mortgage lender or broker please or click here to contact Barclays Bank as they offer mortgages around the world

Home Finance in the Caribbean

If you want to buy a home or refinance an already existing home for refurbishment purposes only and your property is in Anguilla, Antigua, the Bahamas, Barbados, Belize, the British Virgin Islands, Cayman Islands, Jamaica, Nevis, St Kitts, St Lucia, St Vincent, Tobago, Trinidad or Turks & Caicos then you have a chance of getting a mortgage even if you are non-resident.

There are repayment and some interest only types of mortgage product available for most Caribbean islands, generally lenders won’t lend more than 70% of the valuation or purchase price to non-residents, mortgages are available in US dollars, sterling, euros or Canadian dollars and most mortgages have to be paid up within 5 – 20 years.

Cyprus Mortgages

Repayment and interest only mortgages are available in the Republic of (south) Cyprus with a minimum lending amount of CYP 30,000 typical from most lenders.  The maximum amount offered is usually 80% of the property’s value.  If a borrower takes out the loan in Cyprus pounds the maximum duration of the loan is usually 40 years, for all other currencies it’s 25 years.  Proof of income in the form of earned income, pension income or investment/rental income will be required and all mortgages are offered subject to the applicant’s status.

Greece Home Finance

Most nationalities can get finance to buy in mainland Greece or on the Greek islands and loans in Euros come with interest rates that are currently fairly attractive.  Repayment is the only option available to non-residents with a maximum of 80% of a property’s value being loaned and mortgages available in euros as mentioned or US dollars or sterling.  The loan has to be paid back by the applicant’s seventy-third birthday or within 25 years or application, whichever comes first.

Mortgages in Ireland

To buy property in southern Ireland (the Republic of Ireland) one can usually borrow up to 85% of the property’s valuation - although more is sometimes offered to those for whom the property will be their main residence.  Mortgages available are repayment and interest only, mortgage terms are between 5 and 25 years and are available to most nationalities for home purchase or refinance for refurbishment.  Rates of interest are linked to the European Central Bank’s decisions.

Repayment Mortgages in Malta

It’s only possible to get a repayment mortgage in Malta if you’re non-resident, although the good news is that a mortgage can be taken out in sterling or the Maltese Lira.  Mortgages are available for up to 30 years and must be paid back by the time the applicant is 65.  If borrowing in the local currency lenders will offer up to 90% of the property’s value or a minimum of GBP 20,000.

Monaco Mortgages

Repayment and interest only, fixed or variable – all types of mortgage are available to buy property in Monaco.  The limits are that an individual has to pay back the loan by the time they are 80, the maximum term for the loan is 25 years with 7 years the minimum term and the maximum amount available is 85% of the property’s value.  Mortgages are available in euros only from most lenders.

Mortgage to Buy in New Zealand

Interest rates are not so hot in New Zealand right now, but because the nation is so beautiful and property in New Zealand is so attractive this isn’t deterring would be buyers!  Mortgages are available in New Zealand dollars only by the majority of lenders for the purposes of property purchase or refinance for refurbishment.

A loan can be taken out for between 3 and 20 years and must be paid back by the time the applicant is 70, some lenders require that a non-resident applicant gives a local power of attorney before they will lend to them.  Repayment mortgages are available on either a fixed rate or variable rate basis.

Poland Home Finance

You can borrow to buy Polish property in sterling, Swiss francs, US dollars or euros; you can borrow up to 80 – 85% of the purchase price although those on a high income will be offered alternative deals on a case by case basis by some lenders.  The loan periods are between 5 and 30 years usually, with eighty the oldest an applicant can be at the time of final settlement.

Interest rates depend on the currency the mortgage is taken in, fixed and variable rate deals are available to buy property in Poland and mortgages have to be paid up on a repayment basis.

South African Mortgages

South Africa went through a period when it was very popular with overseas buyers and even though its popularity has waned in recent years, mortgages are still available to overseas buyers in South African Rand.  Repayment and combination repayment/interest only options are available.  If you are non-resident you can borrow up to 50% of the loan if using an onshore vehicle or 88% if using an offshore vehicle.  If you are a resident in South Africa it’s likely that some lenders will offer you up to 90% finance.

Switzerland Home Finance

You can take out a mortgage in Switzerland in Swiss Francs for a minimum amount of GBP 150,000 or a maximum of 80% of a property’s value for up to 35 years…all loans have to be paid back by the time the applicant is 70.

Interest rates are quite attractive at the moment and interest only or repayment options are available to overseas buyers of Swiss property.

Further Buying Property Abroad Advice Articles

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