When it comes to financing a property abroad there are a number of ways in which you can go about it. If you are fortunate enough, then the best option might be to buy the property outright, either in one lump sum or in stages. The most typical way, however, is to take out an overseas mortgage.

Common ways to get a mortgage include: from an overseas mortgage broker, such as Viva Costa International; from an overseas bank in the country in which you are buying; from a UK bank or international bank that offers mortgages in a range of currencies; or from the bank that owns the property if you are buying a repossessed property.

The first thing you should do as a buyer is get an agreement in principle from a bank or mortgage broker. This will show agents and vendors that you are a serious buyer and ready to move fast with a purchase. Bear in mind that lending criteria have got tighter in the wake of the credit crunch and resulting economic downturn. In Spain, for example, a mortgage on a resale property is likely to be around 70 per cent loan to value.

As a general rule, always borrow in the same currency as the source of the funds you intend to use to cover the repayments. So, if that’s your UK salary, your mortgage should be in Sterling, but if you’re planning to let your property locally, for example in Spain, and use the rental income to pay the mortgage then your mortgage should ideally be in euros.

If you need to transfer Sterling abroad to meet regular mortgage payments, it’s advisable to use an international payment specialist, such as Smart Currency Exchange. Not only could Smart Currency Exchange offer you a regular payment solution and better exchange rates than high street banks, but it has a range of currency contracts to the differing requirements of its clients. suit your needs and help you to make the most of your money. Here are some of the finance options you can use;
 
One especially popular contract is the Forward contract, which allows you to secure an exchange rate today for a transaction up to a year in the future. The forward contract can be applied to a regular payment scheme, meaning you can fix your monthly mortgage repayment for your overseas home. This helps you to budget monthly outgoings.

Start your hunt for a new home abroad here…
If you’re searching for an overseas property, a good place to start is the Overseas Guides Company’s new property search facility. To start your search now visit http://www.emigrationguide.com/content/emigration-