Overseas Mortgage

Summary: If you want to buy property abroad and require an overseas mortgage this article covers home finance in 10 countries

As more and more of us dream of owning a holiday home in the sun, a retirement home in an idyllic overseas location or even an investment property abroad, so the need to raise an overseas mortgage becomes a requirement for more people.

Some of the main high street lenders have a presence overseas in the most popular hotspots such as France and Spain, but in markets as diverse as Turkey or the Czech Republic, Bulgaria or Canada is it even possible to get an overseas mortgage?  This article looks at the home finance options available to those buying property abroad in ten of the top real estate hotspots.

Please note that this information is correct at the time of publication, it is subject to change and is offered for information and illustration purposes only – if you want us to refer you to a mortgage lender or broker please or click here to contact Barclays Bank, they offer mortgages around the world

Australian Mortgage

It’s possible to get a mortgage to buy or refurbish residential property in Australia in either sterling or Australian dollars and the amount available of course depends on the applicant’s status.  Most lenders cannot lend more than 75 - 80% of the valuation or purchase price (whichever is lower) and Australian mortgages are available over a period of between 5 and 30 years with the outstanding value paid up by the applicant’s seventieth birthday.

At the moment non-status mortgages are not available to overseas buyers and the types of mortgage available are interest only or repayment.

Mortgages in Bulgaria

With the increase in popularity of Bulgarian property in recent years and the announcement that Bulgaria is about to join the EU, more lenders are now considering offering mortgages to those wishing to invest in Bulgarian real estate.  Interest rates vary depending on whether the applicant is re-mortgaging or taking out a new mortgage to buy a new property and most mortgages offered are in Euros.

If buying off plan property in Bulgaria please note that most lenders will not release funds until the property is completed…

Repayment mortgages are the most common type of finance product, they are available for 25 years and are subject to the applicant’s status – they can be taken out for re-mortgage, home improvement or straight purchase.

Canadian Mortgage

Canadian mortgages are available in Canadian dollars with fixed and variable rates available, currently rates are highly competitive and where fixed they are usually fixed for three or five years.

Only repayment mortgages are available to overseas buyers by the majority of lenders and they offer home finance for purchase or remortgage for refurbishment.  The minimum amount most lenders will consider lending is CAD 75,000, there is no upper limit but the upper limit is restricted by the valuation or purchase price of course - with most lenders only offering 75% of this figure as a maximum when lending to non-residents.

Mortgages to Buy Property in the Czech Republic

At the moment mortgages in the Czech Republic benefit from attractive rates of interest and borrowers can get finance to buy, remortgage, refurbish – and other reasons for requiring home finance are considered on a case by case basis.

Mortgage products available are repayment only and the most loaned will be 85% of the property’s value.  Mortgages are currently only offered by local lenders in the local currency and they must be paid back by the applicant’s seventieth birthday.

Mortgages in Florida and the US

Self-cert mortgages are now available to non-resident buyers in America with loans given in US dollars, sterling or euro; traditional mortgages are also available and a lender will consider financing up to 80% of the property’s value over a maximum term of 30 years.  Interest rates vary dramatically between lender and location

France and French Mortgages

France is one of the most popular overseas locations for Brits buying abroad which is why it’s a nation with such a choice of lender.  If taking out a repayment mortgage one can borrow up to 90% of a property’s value, 80% if interest only and 100% if leaseback and in France there are competitive interest rates – try contacting Barclays Bank as a first port of call to find out about their French mortgage offers currently available.  Click here to go to Barclays’ contact form.

Mortgages in Italy

Italy is another country where there is a strong level of overseas interest that has resulted in many high street names establishing an overseas presence.  Mortgages are available in Euros to most nationalities; you can borrow for between 5 and 30 years with a mortgage due to be paid up at the latest by an applicant’s seventy-fifth birthday.  The minimum amount most lenders will consider is EUR 50,000 and the maximum is 80% of the property’s value.  Barclays Bank are one of the main international banks offering mortgages to overseas citizens wishing to buy property in Italy, you can contact them for more information about what they offer by clicking here to go to Barclays’ contact form.

Mortgages in Portugal

As Portugal is also such an evergreen and popular destination among second home, retirement property and investment property buyers, the presence of high street banking giants in Portugal is prevalent.  This is good in that it means a buyer is afforded more choice.

Repayment and interest only options are available and a borrower can choose from fixed or variable rates of interest.  Most lenders will lend up to 80% of a property’s valuation for between 5 and 30 years with GBP 20,000 being the minimum they will lend.

Mortgages are available in all major currencies but Barclays Bank suggests that if buying in Euros you should take your mortgage in Euros.  Click here to contact them about their current mortgage offers in Portugal.

Mortgages in Spain

Spain is one of the easiest overseas countries to get a mortgage in as it has been so popular with overseas buyers for so long that most lenders have a variety of products to suit market demand.

You can get either an interest only or a repayment deal, you can borrow for up to 40 years with a repayment mortgage or 15 with an interest only one and loans have to be paid back by the time the applicant is 80 years old.

The most competitive mortgages offer financing up to 70% of the property’s value although it’s possible to borrow more for higher rates of interest.  Applicants can find out all about Spanish mortgages and be under no obligation if they click here to contact Barclays Bank – we recommend Barclays as they have such an in depth knowledge about the countries they offer finance in and actually have a service where they help a buyer with all aspects of buying overseas.

Mortgages to Buy in Turkey

Last but not least, one of the fastest growing emerging property nations in the world…Turkey.  If you are a citizen of the UK, Belgium, the Netherlands or Germany and you are resident in your home country you can currently get a mortgage to buy in Turkey.  Other nationalities and scenarios may be considered by some lenders and as the market matures so will the home finance options available.

Note - if you’re buying property in Turkey off plan you cannot get the funds until the property is complete and registered in your name.

Currently you can only get euro or sterling repayment mortgages for up to 15 or 20 years, you have to be 24 to apply and pay back everything by the time you’re 75, you will have to pay higher interest rates if borrowing to buy an investment property and interest rates available are either fixed or variable depending on the mortgage product selected.

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