Funding property abroad.

Konrad.

Hello.

I'm looking for advice about hot to fund buying a property abroad.

Me and my wife are both dual citizens of UK and Poland. We live over 10 years in England, and thats a place where we want to live until retirement (so, still more 20 years), but we are thinking about buying a home in Poland, renting it at a moment, and maybe go live there when we over 60+...

But, I cant find anywhere in UK bank offering mortgage abroad. In Poland, they've changed law few years ago, and any income in foreign currency cant be accepted. So in polish banks, no one give us credit even for a laptop...

Property in Poland we want to buy fo 200k pounds, and we have 20k in saving in Poland.

In UK, we own property worth 150k, with a mortgage balance 60k (in hsbc).

I have an income around 45K, my wife 34K. We have very good credit score, and two small loans (my under 1K left, my wife 4K).

Is anyone seen any option to get this missing 180K?

We have remortgage by end of a year, so we can use are equity, but thats gonna be less than 100K. 

In HSBC app, maximum loan per person is 25K, but if i use all equity, they gonna give me in new year, or they gonna reject my aplication?

I found on one of a website, that i can take 100K as a secured loan even now, cause im "pre approved". Is any hacht with that? If we take 100K as a secured loan in August, whats gonna happend in December, when I need to remortgage? If they gave my higher interest, or they can force me variable rate etc?

If you cant give me any advice, you can give some links, cause i wrote many email, and all replies i received is basically "we cant help you with finance property abroad", and only option is cash loan, which obviously for banks is risky, so its more expensive for me...

Thanks in advance for help.

Voyager2002

Konrad. said:

We have remortgage by end of a year, so we can use are equity, but thats gonna be less than 100K. 

In HSBC app, maximum loan per person is 25K, but if i use all equity, they gonna give me in new year, or they gonna reject my aplication?

I found on one of a website, that i can take 100K as a secured loan even now, cause im "pre approved". Is any hacht with that? If we take 100K as a secured loan in August, whats gonna happend in December, when I need to remortgage? If they gave my higher interest, or they can force me variable rate etc?

If you borrow now (particularly if the loan is secured on your property), you will present a greater risk to your mortgage lender and so might not be able to remortgage.

Newbie_John

As you say, there is no easy way these days.
There's more info on Polish websites but they all require someone in Poland:
a) someone else living in Poland buys it with you - sibling, parents etc. - for property of £200k they would need to have high income as banks will consider your income at 50% of your salary
b) one / both of you get jobs in Poland, get mortgage - move back to UK
c) save now, and buy in 20 years
d) pay off your mortgage in UK, sell house, rent in UK and then buy in Poland

Banks only give mortgages for properties in their own country - so you need to get it in Poland - and they only give mortgage in the currency of your income - but none offer in GBP.

Hoenir

Konrad. said:

Is anyone seen any option to get this missing 180K?

I'd suggest parking your dreams for a while. While building up savings/repaying debt as fast as you are able. 

dumpster_fire2025

Konrad. said:

Hello.

I'm looking for advice about hot to fund buying a property abroad.

Me and my wife are both dual citizens of UK and Poland. We live over 10 years in England, and thats a place where we want to live until retirement (so, still more 20 years), but we are thinking about buying a home in Poland, renting it at a moment, and maybe go live there when we over 60+...

But, I cant find anywhere in UK bank offering mortgage abroad. In Poland, they've changed law few years ago, and any income in foreign currency cant be accepted. So in polish banks, no one give us credit even for a laptop...

Property in Poland we want to buy fo 200k pounds, and we have 20k in saving in Poland.

In UK, we own property worth 150k, with a mortgage balance 60k (in hsbc).

I have an income around 45K, my wife 34K. We have very good credit score, and two small loans (my under 1K left, my wife 4K).

Is anyone seen any option to get this missing 180K?

We have remortgage by end of a year, so we can use are equity, but thats gonna be less than 100K. 

In HSBC app, maximum loan per person is 25K, but if i use all equity, they gonna give me in new year, or they gonna reject my aplication?

I found on one of a website, that i can take 100K as a secured loan even now, cause im "pre approved". Is any hacht with that? If we take 100K as a secured loan in August, whats gonna happend in December, when I need to remortgage? If they gave my higher interest, or they can force me variable rate etc?

If you cant give me any advice, you can give some links, cause i wrote many email, and all replies i received is basically "we cant help you with finance property abroad", and only option is cash loan, which obviously for banks is risky, so its more expensive for me...

Thanks in advance for help.

There are no options.

Even personal loans wouldn't be eligible as they will have clauses that explicitly exclude the funds being used to buy property.

I wouldn't touch the secured loan with a bargepole.

Konrad.

Voyager2002 said:

If you borrow now (particularly if the loan is secured on your property), you will present a greater risk to your mortgage lender and so might not be able to remortgage.

Just be curious: what happend then in January?

c) save now, and buy in 20 years

Newbie_John said:

d) pay off your mortgage in UK, sell house, rent in UK and then buy in Poland

I though that advice "C" is worst, but that one beat it.

If I sold property for 150K, and pay off my mortgage, that left me 90K on bank account, but - im gonna lost property, so now have to pay 1K around monthly for renting.

But if I use my equity, and remortgage 90% LTV, that put me 81K on bank account, and I still owe my property, so I dont need to burn one thousand pounds every month...

=====

Thanks everyone for advice. I have to wait until remortgage in december, and in spring time looks for some loan.

dumpster_fire2025

Konrad. said:

Voyager2002 said:

If you borrow now (particularly if the loan is secured on your property), you will present a greater risk to your mortgage lender and so might not be able to remortgage.

Just be curious: what happend then in January?

c) save now, and buy in 20 years

Newbie_John said:

d) pay off your mortgage in UK, sell house, rent in UK and then buy in Poland

I though that advice "C" is worst, but that one beat it.

If I sold property for 150K, and pay off my mortgage, that left me 90K on bank account, but - im gonna lost property, so now have to pay 1K around monthly for renting.

But if I use my equity, and remortgage 90% LTV, that put me 81K on bank account, and I still owe my property, so I dont need to burn one thousand pounds every month...

=====

Thanks everyone for advice. I have to wait until remortgage in december, and in spring time looks for some loan.

You've ignored the advice.

You won't be able to get a loan for 180k in this country, certainly not unsecured and what would be the point of getting one that is secured on your house?

If your property is only worth 200k in this country, your income isn't going to be much more than average so you wouldn't pass affordability checks for a £180k loan in a million years.

A better idea is to continue to live here until you want to move back to Poland, sell your house here, then move back to Poland and buy a house there. Anything else is a pipe dream.

Konrad.

dumpster_fire2025 said:

You've ignored the advice.

You won't be able to get a loan for 180k in this country, certainly not unsecured and what would be the point of getting one that is secured on your house?

Because, then I can easily rent that property in Poland for about 800 pounds per month. So, after that, I need to pay 100-200 pounds per month, to get property worth 200k on retirement...

Caz3121

Konrad. said:

I found on one of a website, that i can take 100K as a secured loan even now, cause im "pre approved". Is any hacht with that? If we take 100K as a secured loan in August, whats gonna happend in December, when I need to remortgage? If they gave my higher interest, or they can force me variable rate etc?

I can't see how that works if there is currently £90k equity in the property you would be borrowing against - I can't see any lenders that go over 100% LTV...and still leaves you short anyway
Would it not be simpler on retirement to sell up in UK and buy in Poland?

RedLipstick

Hi Konrad!

I know it's an old post so apologies in advance, but I was wondering if you've got any luck or have you decided on a plan yet? I'm in a similar situation, considering buying a property in Poland in the next few years though cannot see any way other than selling my property here or saving up to buy outright.

Regarding the loan and remortgage - I believe they will look at your debts when you're remortgaging, my mortgage advisor was very vocal about not taking up any additional debt up to 3-6 months before remortgaging, though I think it's not an issue if you're remortgaging with your existing provider.

Will be keen to hear how you're getting on. Thanks!

retiredbanker1

Have you researched any Polish banks that might be in this market?

UK Banks will not lend money on a personal loan to buy property. They will not give you a mortgage if property is not in UK.