Whether you want to buy a holiday home or are thinking of a more permanent place to settle, it’s an exciting time. The thought of living it up in a hot country, relaxing by the beach with a drink in hand – pure bliss. So, if this is your idea of a dream, you might be wondering how to make it happen.
There are many options to choose from when buying a house abroad. Each one is different and appropriate for your financial situation. If you’ve started to explore your options and you’d like to know more about the products that are out there – read on.
Paying upfront in cash
If you have the available funds to be able to pay for a property abroad in cash, this is often the easiest way to do it. Waiting for mortgage agreements and releasing money can take time. So, paying upfront in cash is a fast option, especially if you purchase a property with no onward chain. If this sounds appealing, it’s worth enquiring with estate agents close to your desired location and they can advise you further.
Releasing money from your current property
An equity release mortgage is a way to release money from your current property. The money you take out could then be used with your savings to buy a new home abroad. It is important to note that this option is for those over 55. Moreover, you must live in your home for a minimum of 6 months during the year which means you cannot fully relocate to your home abroad. However, if this isn’t an issue, an equity release mortgage is a great option.
Taking a mortgage out abroad
You might want to take a mortgage out in your chosen country of residence. However, before you do so, there are many things to consider beforehand. These include tax rates, different currencies, and possible exchange rate fluctuations. Moreover, you may be expected to pay a higher deposit for your property as well. If you’re looking for more of a permanent base abroad, this isn’t a bad option. But, if the thought of fluctuating prices and unknown currencies makes you nervous, perhaps opt for another option.
Apply for an overseas mortgage at your bank
Overseas mortgages are hard to come by. However, there are still some banks that offer international services. So, I this is something you’re interested in, it’s still worth doing your research or speaking to your current bank to find out more.