Mortgage for second property overseas

Pennypincher_5

Hi, I have a mortgage of around 45,000 and the property is worth around 150,000....totalling equity of around £100000.

I have a fixed rate mortgage that is about to run out in March and will need to find a better deal to fulfill my plans and ambitions.

When I do this I have considered borrowing to the full value of my property to enable me to buy in France as an investment holiday home & to offer as a holiday let when not in use to help pay the costs.

Does this make sense?

Could anyone give me some advice on this matter please.:beer:

Ian_W

Not in the sense of remortgaging to the full value of your property - in other words a 100% LTV. I think the most you'll get is 90-95%, though the latter may include a higher lending charge to cover the greater risk being taken by the lender.

Otherwise if you have both the equity in the property and the earnings to afford the new repayment level then remortgaging to raise capital for a second home overseas will be acceptable to most lenders I think. Although a € mortgage will have a lower interest rate there are often much higher costs in mortgaging the overseas property locally - as well as the exchange costs of the repayments and the risks of exchange rate fluctuations.