Can I use my holiday home in Turkey as collateral?

SPORTER

Hi,

My current mortgage deal ends in December and was wondering if I could use my apartment in Turkey as collateral. It's value is approx £100,000 and my current mortgage on my bungalow in the UK is £245,000 which is valued at £300,000.

Are there lenders out there who would look at this as a £245,000 mortgage on £400,000 of value across the two properties thus enabling me to get a better deal? If so, what are the procedures and requirements?

Advice greatly appreciated.

homer_j_3

in short, no you cannot do this.

The lenders will only use UK security for a UK mortgage.

You could sell your apartment for £100k and pay it off your home over here and that would allow you but that would defeat the object, I guess.

kitten81

Hi

Also along these lines I was wondering if anyone knows the answer to this please? Have an apartment which I think is probably in negative equity but would like to sell up for various reasons. Also have a parcel of land with PP in Ireland with no mortgage. Is it possible to sell the apartment and secure the outstanding amount of the mortgage against the land? If not, is it possible to take out an Irish loan again the property to pay off the balance on the mortgage? The apartment is in UK.

Thanks for any input.

Jonbvn

As per the previous post, you cannot secure a UK mortgage against overseas property or land, since it would not be possible for the lender to recover it, should you default.

You may be able to secure a loan on your land in Ireland. It depends how much it is worth and what the PP consists of.

Conrad

It's all about whether a lender can take possession of an asset with ease in the event you default, which is certainly not the case for a Turkish asset, so no it cannot be used as security.

As for the Irish asset you would need to take an Irish loan against it if possible.

kitten81

Even if the lender on the apartment is also an Irish mortgage lender?

Thanks to everyone so far for the input :-)

Dan_Collins_2

Bank Of Ireland will lend, but they will use the Irish section of the bank to do it.

kitten81

Thanks. I was just thinking that if our current mortgage lender also operated in Ireland then the land would be accessible to them as security.