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Buying Overseas

Published: 05 September 2014
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Author: Carl Shave - CEO and co-founder
Last updated: 30May2024

If you’re considering buying property abroad, the advice is essential – depending on the route you take, there may be key differences in getting a mortgage for an overseas property, compared with purchasing a home in the UK. There are a number of mortgage options open to people buying abroad.

If you either own your UK home outright or have a large amount of equity in the property, you can raise capital for the overseas purchase by arranging either a further advance from your existing lender or remortgaging to release equity. These are all relatively straightforward methods of raising funds for a foreign purchase, as the lending is secured against your existing UK property. However, as with all mortgages, if you were to struggle with payments you could end up losing your home. A qualified broker will be able to review your circumstances and provide mortgage tips on the best option for your situation.

UK Lenders for Properties Abroad

Alternatively, some UK lenders offer mortgages to buy properties abroad. Usually, these are banks that operate internationally or have an overseas subsidiary, such as Santander (which is owned by a Spanish banking group). While perhaps not as straightforward as a standard mortgage application, they have the advantage of everything being handled within the UK, potentially making it easier to resolve any problems or questions that arise.

Overseas Mortgage Lender

A third option is to apply for a mortgage with an overseas lender. Be aware that any advice you receive in this situation wouldn’t be covered by the UK’s Financial Conduct Authority (FCA) and you would have no option for redress if the mortgage was mis-sold. Applying to a lender abroad can also mean other complications – for example, ID and address verification documents may need to be authenticated and witnessed by a UK solicitor.