Diamond Property Finance has access to various international lenders. Our services include,
Please see the countries where we have sourced funding in the past,
Please contact us if the security is in another country not listed.
Offshore vs Overseas Mortgage
Having a holiday home abroad can be a great investment for many. Particularly those wishing to make money from renting out the property when unoccupied.
Mortgages for overseas properties are a good choice for clients looking to purchase a property in a country that isn’t one they are currently a resident of. There are two types of overseas property finance; offshore mortgages and overseas mortgages.
Typically used for residential properties, offshore mortgages are products designed for clients who are domiciled abroad or are receiving their income from overseas, but are looking to purchase or remortgage property in the UK.
Alternatively, an overseas mortgage is a mortgage product that is taken out on a property that is not in the borrower’s country of residence. For example, this could be a holiday home in France where the mortgage has come from a French lender.
Financing an overseas property purchase
If you are exploring the process of getting a mortgage for a property abroad, Diamond Property Finance can help.
When applying for a mortgage overseas, eligibility will depend upon the lender, client circumstances and the country the property is located in. Typically, offshore property finance and overseas mortgages require higher deposits than standard residential mortgages. Clients should expect to pay c.30% to 40%.
For those looking to purchase UK property from abroad, offshore mortgages may offer a tax-effective solution for a certain category of borrower as it’s possible to apply for an offshore mortgage as an individual, via a limited company or an offshore trust. Be sure to speak with a tax adviser before proceeding with this type of mortgage.
Additionally, offshore mortgages are a viable option for clients with a lack of UK credit history. Lenders recognise that prospective borrowers may not have the required criteria and have adjusted their application and underwriting process to reflect this.
Each foreign currency property finance loan will be considered on an individual basis, but it’s important to consider key factors including differing property tax liabilities and exchange rate fluctuations ahead of purchase. Depending on the country and lender, currency changes may also be an important eligibility factor when your mortgage affordability is calculated. To learn more about offshore and overseas mortgages, get in touch with us today.
FREQUENTLY ASKED QUESTIONS
What is an offshore mortgage?
What types of property can you buy with an offshore mortgage?
What are the eligibility criteria for an offshore mortgage?
Eligibility criteria for offshore mortgages can vary among lenders, but common requirements include:
– Non-UK Residency: The applicant should not be a resident in the UK for tax purposes.
– Income Sources: Individuals whose primary income is earned outside the UK are often eligible.
– Affordability: Lenders assess the borrower’s ability to afford the mortgage payments.
– Creditworthiness: A positive credit history is crucial for approval.
– Purpose: Clearly stating the purpose of the mortgage, whether for personal use or investment.
What are the benefits of offshore mortgages?
The benefits of offshore mortgages include:
– Global Investment: Enables non-UK residents to invest in the UK property market.
– Diversification: Offers diversification by holding property assets in different jurisdictions.
– Tax Efficiency: Provides potential tax advantages for non-UK residents.
– Property Ownership: Facilitates property ownership without residing in the UK.
