Loan or Mortgage?

Kylie

Looking to buy first home overseas to rent out. Money needed only £25K.

Plan to pay this off in less than 3 years - and require the flexibility to pay it off earlier.

Would it be better to get a loan or mortgage?

[Planning to also purchase UK property end of year/early next year with UK mortgage]

Advice appreciated.

MortgageMamma

I think the minimum term for a mortgage is five years. Personally, I'd get a loan. as the difference between a slightly higher interest rate and the amount of fee's you would have to pay with a mortgage, application fee, legal fee etc, will make the mortgage less cost effective;

canny_yorkshireman_2

agreed with mamma as you also wish to obtain a mortgage later then this would be a lot easier if you do not have a current mortgage
hth

Ian_W

I agree with the two comments above though it may also be worth checking out costs for a mortgage in the country where you're buying. €uro mortgage rates are cheaper than UK BUT do tend to have higher costs than here.
You also should be aware that your loan may affect the amount you can borrow when you come to buy in the UK.

Kylie

Ian_W wrote:

I agree with the two comments above though it may also be worth checking out costs for a mortgage in the country where you're buying. €uro mortgage rates are cheaper than UK BUT do tend to have higher costs than here.
You also should be aware that your loan may affect the amount you can borrow when you come to buy in the UK.

So perhaps buy the UK house first with mortgage and then the international one (not €) as a loan (or add on to our UK mortgage)... it's all hurting my head.

To get a mortgage for a UK property, what the best first point of call? London and Country?