Mortgage for overseas property

Graeme7777

Hi,

If someone who is living and working in the UK would like to buy a property abroad (outside the EU), which is the better option - to raise a mortgage from a UK lender or to get a mortgage from a bank in that foreign country?

Thanks!

Graeme7777

Any ideas?

Thanks

bonytony_2

I would like to know too as i would like to buy property in Sydney but work in the UK.



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furndire

Graeme7777 wrote: »

Hi,

If someone who is living and working in the UK would like to buy a property abroad (outside the EU), which is the better option - to raise a mortgage from a UK lender or to get a mortgage from a bank in that foreign country?

Thanks!

I would think that one thing to bear in mind with a foreign mortgage is the exchange rate every time you need to make a payment.
Don't know anything about which way to get the mortgage though

drrobert

If you want to avoid currency risk, take out a mortgage in the currency you are paid (or receive rent) in. So:

- If you're paid in Sterling, it might be sensible to take out a mortgage in Sterling, so your mortgage repayments do not change with changes in the Sterling/Currency X exchange rate.
- If you're paid in Currency X, a Currency X mortgage would be more sensible for the same reason.

Some people might have strong views about the future direction of interest rates/exchange rates, and play the market by doing the opposite. This is more risky, however.