Buying in the uk, with property abroard as collateral?

francobaresi

Hi,

We have just move back to the UK from Bulgaria(Thanks for all the advice for us to get here)!

We are now looking to buy a place in the North East for about 20-30,000.

Would we be able to secure a mortgage or loan for 15-25,000 on our house in BG with a deposit of £5000?

I am self employed but would not be able to prove any kind of decent earnings for the last 3 years as i have been renovating said house abroad and not really working.

Would any of this be an issue or could we go to a bank or somewhere?

Thanks alot.

Francobaresi.

Ian_W

Noticed you got to page 4 with no replies, so this will put you back to page 1.

No UK mortgage lender is going to be the least bit interested in your Bulgarian property. Far too complex and expensive to use it as "collateral" on a UK loan, particularly as it is a very small loan you're seeking in mortgage terms. Can you borrow against it from a Bulgarian bank? Or sell it?

The house you purchase in the UK would be the mortgage security, however, I fear your chances of getting a mortgage are slim to none. Since the credit crunch someone starting self employment with no proof of earnings has very little prospect of a mortgage. All I can suggest is you speak to an independent mortgage broker, it probably won't do you any good but should give him a laugh and prove what you've been told by someone you don't know on the internet is actually correct.

Why not rent until you re-establish yourself back in the UK?

I thought you were "avin a giraffe" talking about £20-30K houses in the North East but went on Right Move and was gob smacked that they do exist, but TBH they all look pretty cruddy though and many are auction guide prices for repos in what look like run down areas.

Sorry it is probably not what you wanted to hear but maybe now you're back on page 1 someone will be along to disagree with me.