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  • FIRST POST
    • lildoonbuggy
    • By lildoonbuggy 11th Jan 18, 10:25 PM
    • 35Posts
    • 114Thanks
    lildoonbuggy
    Financing international (EU) property
    • #1
    • 11th Jan 18, 10:25 PM
    Financing international (EU) property 11th Jan 18 at 10:25 PM
    I have a 1 bedroom flat in Germany which I purchased from my father in December 2016. The legalities have been finalised and all is in my name, and we have a private agreement where I repay him £700 a month for 5 years in payment on 0 interest. This has worked well for the last year, however I'm thinking about creating more financial flexibility for the future and potentially starting a family in the next 2 years. Therefore, I'd like to take out a mortgage/loan to repay my father in one lump some, freeing up cash in the process. I would like to still make extra payments where possible.

    My question is, has anyone had similar issues financing a property overseas that they have ultimately overcome? The German banks won't lend to me due to not earning a German income (apparently a cross EU law) and the international mortgage lenders I've come across appear sub prime with unclear interest rates. To complicate things, my father lives in Australia so I am doing currency conversions for each payment (not ideal given the fluctuating pound). The figures are below for info.

    Property value: €50k
    Outstanding: €40k
    Annual repayments: €10k (final payment January 2022)
    Service fees/upkeep: €180pcm
    Rental income: €420pcm (on short term rentals/airbnb)

    Any thoughts/experiences of others would be greatly appreciated.
Page 1
    • ACG
    • By ACG 11th Jan 18, 10:38 PM
    • 16,126 Posts
    • 8,305 Thanks
    ACG
    • #2
    • 11th Jan 18, 10:38 PM
    • #2
    • 11th Jan 18, 10:38 PM
    Have you tried a broker who specialises in this sort of thing?
    The average broker would not have a clue. I know of one called Conti, but I could not say if they are any good or not as I have no first hand experience with them.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • lildoonbuggy
    • By lildoonbuggy 12th Jan 18, 4:28 AM
    • 35 Posts
    • 114 Thanks
    lildoonbuggy
    • #3
    • 12th Jan 18, 4:28 AM
    • #3
    • 12th Jan 18, 4:28 AM
    Thanks ACG, I've only tried brokers in Germany and Australia, where I have equity, but not the UK. Australia has offerings but at a considerably higher interest rate. Will give these guys a try. My main concern is that the low value of the mortgage will preclude me, or that it is complicated by being a remortgage rather than traditional purchase. Will see what comes out of it!
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