There are considerable differences between raising mortgages overseas in comparison with the usual way of obtaining a mortgage in the UK. There are many more potential pitfalls, which make it especially important that you seek advice from experts before making a commitment
There are opportunities of raising money through lenders typically in more than 20 countries. By seeking advice on raising money yourself you are then not tied to any overseas estate agents or property developers.
Things to consider-:
Contracts
What deposit is required? Is it refundable and under what circumstances? For new properties, what stage payments are required and when? What is included in the price and what is the cost of the extras? Check the due completion date.
Raising Finance
If you require mortgage finance, obtain an 'Agreement in Principle' for your mortgage before agreeing to purchase the property, or before signing any contracts and paying a deposit. If you are arranging finance on the property, ensure that this is stated in any contract and, where possible, seek an 'opt-out clause' if the loan is not agreed (which will ensure any deposit paid is refunded). Remember your mortgage will probably be in the local currency and you must consider the impact of fluctuations in exchange rates. However, if the intention is to receive rental income from the property, this may be in the local currency
Conclusion
Remember - remain clear about your objectives. You must be sure about why you're buying and what you're hoping to achieve. Is it for retirement purposes, purely for holidays, or an investment? You may be undecided, e.g. had planned to buy in Spain for holidays and eventual retirement, but now have decided to go for an emerging market like Montenegro, where you hope to profit from the investment. Can you really afford the risk associated with this change of decision?
Call us to discuss for impartial and FREE advice or go to our Contact Us Page to find out how we can help.