Re-mortage to purchase abroad..?

denmarkhill

Hello,

I have £87,000 remaining of the mortgage on a two-bed flat in London. The flat was last valued at £450,000 (pre EU Vote). My partner and I have identified a place in France we want to buy - we are very very keen.

Since the EU vote almost 30,000 Euros have been lost from our possible purchase price. Right now it is not clear that we will get near the asking price - indeed there is a strong view that we will end up with offers very much lower. The combined effects may mean we cannot afford the full purchase of the French place. I cannot (so far) get a mortgage as, although I am paid quite well, the company of which I am a director makes a loss.

Someone suggested that we re-mortgage. This sounded like a great idea as we could buy the French place outright (which includes a retreat business my partner will run), and let our flat out here (bar one bedroom which I would then use as I will need to be in the UK about half the time for a year or so to run my business). Then although having a big mortgage (we had hoped not to have one at all), we get the move we want and have some income from the flat, plus, I guess, a London property which may increase in value again over the longer term.

However having had a quick look, it seems that the mortgage repayments would be very high, perhaps prohibitively so.

My questions:

1. What are your views on whether we could get a re-mortgage?
2. Any other thoughts or suggestions?

Other related facts: My partner earns circa 24K and is on temp contracts in London right now; I am 49; I earn circa 40K pa.

Thanks for any advice or thoughts at all.

Thrugelmir

denmarkhill wrote: »

I cannot (so far) get a mortgage as, although I am paid quite well, the company of which I am a director makes a loss.

Which will also impact your ability to obtain a UK mortgage.

Suggest you speak to a broker. As doesn't sound straightforward.