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First-time buyer - can I use foreign property as security?

verysmallflat
verysmallflat Posts: 3 Newbie
in House buying, renting & selling
Hello - my husband and I would love to get on the property ladder here in the UK. I happen to own a flat in France, the mortgage of which is 2 years from completion. With very limited savings and not much income is there any way I can use the nearly finished or finished mortgage in France as leverage or security against a first-time buy in the UK? If not would I have a better chance of my bank in France agreeing a mortgage for a property in the UK?

Thank you very much.

Comments

  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    In reply to your first question: No - a mortgage can only be secured against one property, the one you are using the mortgage to buy.
    I doubt whether a bank in France would agree to lend you money to buy a property in the UK.
    With not much income, how do you propose to fund the interest charges and repayments if you did manage to obtain a mortgage?
    "You were only supposed to blow the bl**dy doors off!!"
  • chou-chou
    chou-chou Posts: 135 Forumite
    Plus, I don't think you are classed as a FTB if you've ever owned property anywhere else in the world.
  • mynameisdave
    mynameisdave Posts: 1,284 Forumite
    chou-chou wrote: »
    Plus, I don't think you are classed as a FTB if you've ever owned property anywhere else in the world.

    I know you won't qualify for the Government stamp duty scheme, but a lender may have their own criteria for that.

    I'd rather not be classed as FTB as far as a lender goes!
  • verysmallflat
    verysmallflat Posts: 3 Newbie
    Thank you to all for your comments. Re. funding the interest charges, etc, I'll rely on the bank to tell me what we can afford, but I really wanted to know if there was a special bank hiding somewhere who could 'reward' me for paying off another mortgage in France.

    Thanks to the other comments too about being a FTB - what are the drawbacks to being a FTB?

    Thanks again!
  • mynameisdave
    mynameisdave Posts: 1,284 Forumite
    Not significant, but some banks will not offer as wide a range of mortgage products to FTB's, or they may have a slightly higher rate of interest. Other than that I can't think of anything else.
  • fair_deal_3
    fair_deal_3 Posts: 16 Forumite
    chou-chou wrote: »
    Plus, I don't think you are classed as a FTB if you've ever owned property anywhere else in the world.

    Is this correct? I have heard that stamp duty is payable even if one has owned property outside the UK or EU
  • Mouseman
    Mouseman Posts: 2,394 Forumite
    fair deal - aren't you saying the same thing as chou-chou?! ;)
    If this post wasn't up to your standards, please lower your standards... ;)
  • fair_deal_3
    fair_deal_3 Posts: 16 Forumite
    Mouseman wrote: »
    fair deal - aren't you saying the same thing as chou-chou?! ;)

    Yea you're right........guess its past my bedtime...........nite nite;)
This discussion has been closed.
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