OVERSEAS PROPERTY

ENQUIRY FORM

More and more British people than ever are hoping to beat the winter blues with a second home abroad. The weather is great all year round and the lifestyle is at an easy pace- but what is the best way to pay for the second home?

Britain's biggest building society, the Nationwide, reports an 85% increase over the past decade in the number of Brits who own foreign property.

Price is a great attraction, with properties that needing work but with an amount of land selling for less than £60,000 in Spain. For £170,000 it is still possible to get a 3 bedroom property with two bathrooms, balcony and sea view on the Costa Blanca.

However, people hoping to buy an overseas property who do not have the cash to buy outright are faced with a difficult decision.

They must decide whether it is better to raise money in the UK against any existing property and pay cash for the overseas home, or take out a mortgage in the country where the holiday home is located.

It’s very often the devil you know that wins as higher percentages decide to have a remortgage on their current British property.

This also makes sense to keep the mortgage in the same currency as your income. That way you only have interest rate rises to worry about and not currency fluctuations as well.

Mind you if you intend to rent out the property and will receive income in euros, you should consider taking out the loan in euros or you could be affected by currency fluctuations.

You should speak to one of our expert brokers to weigh up your options.

You should also remember there will be regular bills on your property overseas, such as utility bills and local taxes.

One important final point is that if you are using a UK mortgage to pay cash, be sure to obtain independent legal advice and a valuation for the foreign property. These safeguards will automatically be in place if you take an overseas mortgage and are vital, however you arrange the finance.

Buying Overseas Property, UK or overseas mortgage which is best? Free advice is now available via our expert brokers. Complete our one minute enquiry form.