Overseas or UK mortgage: which one is better?
Thinking of buying real estate properties abroad? Then, know which one is better: Overseas or UK mortgage.
13:28 22 May 2013
When you’re buying real estate properties abroad, you have the option of overseas investment mortgage or UK mortgage. In order to make well-informed decision let me list their pros and cons.
- Interest rates. UK mortgages typically charge higher interest rates compared to lenders abroad. However, it is worthwhile to check the rates of the banks from the country where you want to buy the properties from and just compare.
- Convenience. The main reason why other people would rather take out mortgage from UK banks is convenience. You don’t need to travel to another country when submitting your documents and filing your application. Also, you don’t have to worry about miscommunication due to language barriers.
- Currency. The main disadvantage of taking out overseas investment mortgage is that it uses different currency. As the exchange rates go up and down, this may add relatively thick layer of risk into your investment. If the exchange rate goes against you, you may end up paying more.