Overseas Mortgage Information Request

cmjudd

I'm looking to purchase a buy-to-let propoerty in Cape Town, South Africa later this year and would welcome any information regarding overseas mortgages provider by UK lender, legal, exchange rate conversion companies, etc.

herbiesjp

DO you have a UK property you could raise the moeny against?

JoeK_3

cmjudd wrote: »

I'm looking to purchase a buy-to-let propoerty in Cape Town, South Africa later this year and would welcome any information regarding overseas mortgages provider by UK lender, legal, exchange rate conversion companies, etc.

A complicated area but you might find the following information of interest.

Mortgages available for the majority of Nationalities for either House Purchase or re-financing for Home Improvement purposes only.

Type of Loan: Repayment Mortgages only for loans over 10 years, but part Repayment & Interest only possible for loans under 10 years

Mortgages for Property in South Africa: Minimum: Rand 2,000,000, No Maximum, but must not exceed 80% of valuation or purchase price (whichever is the lower), however if you are a non-South African National the maximum is currently 50% of valuation.

Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available). Non-Status loans are currently not available.

Mortgage Term: Up to 20 years - up to a maximum age of 70 (dependant on Income after retirement age)

Foreign Mortgages Currency: South African Rand only

Current Interest Rate: from approx 9.00%

Example in Rand: Repayment mortgage of £200,000 over a period of 20 years at an interest rate of approx. 9.00% Variable = approx £1,826.00 capital and interest per month = a total approximate amount payable over term of £440,240 including capital, interest, arrangement and survey fees.

JoeK

cmjudd

I will have a deposit of approx £40k (SAR 52k) and wish to take the mortgage out in GBP rather than being exposed to exchange rate risk when making monthly payments. Many of the High St banks do not seem to offer mortgages for Overseas property, especially for purchasing in South Africa.

Loan term between 20 - 25 years

Also, unsure if to take a repayment or interest only mortgage as when letting a property in the UK, the interest can be set against profits of letting the property and unsure if this is possible with foreign property investments.

Any advice apprecaited!