Can you get a mortgage to
buy property abroad?

Can you get a mortgage to buy property abroad?

Yes, although it is rare, it’s possible to get a mortgage to buy property abroad. While many UK lenders won’t facilitate overseas purchases due to the risk, some specialist lenders are open to this option. With the right support and advice from a broker experienced in international mortgages, you can secure financing for a property outside the UK.

Why you might need one

People seek overseas mortgages for various reasons, such as:

• Purchasing a holiday home, apartment, or flat.

• Retiring abroad or splitting time between the UK and another country.

• Buying an overseas investment property to use as a buy-to-let (e.g., Airbnb).

• Moving abroad permanently or buying a property while living and working as an expat.

• Buying into a timeshare for periodic access to a property.

Which countries can you get one in?

Mortgage One partners with specialist brokers who can help with financing property in countries like:

• Spain

• France & Monaco

• USA

• Italy

• Portugal

• Cyprus

• Singapore

• Germany

• Denmark

• Turkey
  …and more.

How much can you borrow?

Typically, lenders may apply standard UK mortgage income multiples of 4 to 4.5 times your income, though overseas mortgages often have stricter requirements. Some lenders use lower multiples or unique affordability assessments. Using an overseas mortgage calculator can give you a rough estimate, but speaking to a specialist broker will provide more accurate information.

How to get an overseas mortgage

Securing an overseas mortgage can be complex. The first step is to consult a broker with experience in international property financing. A specialist broker will help you by:

• Understanding specific country requirements and local regulations.

• Accessing your credit history and ensuring your information is up-to-date.

• Providing exclusive access to overseas mortgage deals.

• Matching you with a lender suited to your circumstances and securing the best rates.

At Mortgage One, we are connected with a network of international Brokers. Call us on 01202 155992 for a no-obligation conversation.

How much will an international mortgage broker cost?

International mortgage brokers may charge a flat fee between £500-£1,000, or a percentage of the loan, typically 0.5%-2%. This is usually payable once the mortgage is in place, though some brokers may request part-payment during the process. Alternatively, some brokers take a procuration fee directly from the lender.

Eligibility criteria and deposits

To qualify for an overseas mortgage, you’ll need to meet specific requirements, including:

• Deposit: A larger deposit may be required to offset the risk. Loan-to-value (LTV) ratios usually range from 50%-85%.

• Country and currency: Lenders prefer stable markets and may require you to make repayments in pounds sterling.

• Income and employment: Some lenders may limit loans to high-net-worth individuals or may not approve loans for self-employed applicants.

• Mortgage type: Your choice of repayment or interest-only mortgage can influence lender decisions.

Lenders and banks

Some UK banks that offer overseas mortgages include HSBC, Santander, and Standard Chartered. Availability will depend on your finances and the country where you want to buy property. A broker will help you find the best lender for your needs.

Alternative ways to finance property

If an overseas mortgage isn’t right for you, there are alternative financing options, including:

• Remortgaging a UK property to release equity.

• Taking out a secured or unsecured loan.

• Working with international lenders abroad.

• Using your pension or investments.

What to be aware of

When purchasing property abroad, additional factors to consider include:

• Tax implications in the UK and the country of purchase.

• Insurance requirements.

• Inheritance tax (IHT) considerations.

• Legal and planning permissions.

• Local estate agent fees.

Speak to a broker who specialises in overseas mortgages

Getting an overseas mortgage can be complex without professional help. Mortgage One works with a network of brokers who understand international mortgages and will guide you through the process. Call us at 01202 155992 or make an enquiry for a free consultation.