International Mortgage Service Frequently Asked Questions
Buying property overseas can seem like a challenge at times but we are here to help smooth the journey. We have included some answers to some of the most commonly asked questions. If you need any more help or advice on arranging your international mortgage please just contact us.
Frequently Asked Questions
What currency can I arrange my mortgage in?
You can arrange your mortgage in the following currencies.
- sterling
- euro
- US dollar
- Swiss franc
(for CHF earners only)
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- Canadian dollars
- Australian dollars
- New Zealand dollars
- Hong Kong dollars
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- Japanese Yen
(for JPY earners only)
- Singapore dollars
(for SGD earners only or loans against property in Singapore)
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Generally speaking it is wise to match the currency of your loan with the currency of your assets – in this case the property you are buying. However some people choose to match the currency of the loan to the currency of their salary or more liquid assets such as savings. The choice depends largely upon personal circumstances, future plans and currency exchange rates.
What if I am looking to buy a property in a country you do not currently cover?
Whilst we are only able to provide mortgages for properties in the countries we have listed, if you have an existing property in one of these locations we may be able to offer a refinance package which would release equity from your property for use on just about anything else – including purchase of a property in another country.
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How long will it take for my mortgage to go through?
From receipt of a signed offer letter, it will typically take 4-6 weeks for property purchases in Great Britain, Australia, New Zealand, Canada, Dubai, Hong Kong and Singapore and up to 6-8 weeks for property purchases in the USA. Buying property in Spain, France and Portugal will normally take a bit longer – typically up to 12 weeks from receipt of a signed offer letter.
Please note, these are guideline timescales only but ensuring you have all the necessary paperwork to accompany the mortgage application can help speed things up. If you are in any doubt as to what you need to supply please just contact us.
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Can I make a lump sum payment or early repayment in full?
Yes – we don't even have any penalties for lump sum payments or early repayment of the mortgage providing that settlement coincides with your next scheduled repayment. Early repayment penalties may apply on fixed rate mortgages .
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How do I know how much I can borrow?
Generally we allow customers to borrow up to five times their sole or joint basic annual salary. We will also take into consideration up to 70% of any rental income. Typically, we will lend up to a maximum of 70% of the purchase price or valuation, whichever is lowest. This applies to all counties covered. If the mortgage is taken out in a currency other than that of the property or your main income then the maximum we will lend is 65% of the purchase price or the property valuation, whichever is lowest.
Each case is taken on its individual merits and we can provide a decision in principle on receipt of a completed application form which is valid for 6 months – meaning you know exactly how much you could potentially borrow.
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Can I buy a property off-plan?
Yes though we can only provide finance once the newly built property has already been fully constructed.
We are unable to offer a stage-payment service for countries other than Dubai. If you are looking to buy a property in Dubai, we can arrange 'stage payment' where the loan funds are released in different stages while the property is being constructed, provided that payment schedule and proof of deposit is submitted to the Bank. To qualify for this, the property you are interested in must be on our list of approved developments. For more information please contact us.
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Can I use the International Mortgage Service to purchase land?
Sorry - we do not provide finance for land or commercial property of any description which also includes finance for self-build projects. With the exception of Dubai, we can only provide loans against completed properties – for more details about this service please contact us.
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Must I have life cover when arranging a mortgage for a French property?
No, unlike many lenders we do not insist on life cover when taking out a mortgage for a property in France or other countries. However this is something you should seriously consider if you do not have adequate cover already in place. Such cover is recommended for mortgaged properties valued in excess of GBP 500,000 and you are advised to seek independent advice on related protection for your loan.
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How does the currency switching work?
Subject to qualification criteria and availability which varies from time to time, when currency switching options are provided, you are allowed to switch the currency of your mortgage throughout the life of the loan. The first two switches in a calendar year are free of charge. Thereafter, switches are subject to a charge of USD150.
Generally speaking it is wise to match the currency of your assets with that of your liabilities. Many people, however, opt to match their salary or more liquid assets such as savings, with the loan. The choice depends largely upon personal circumstances, future plans and currency exchange rates, though the ability to switch currencies during the life of the loan could prove valuable at a later date.
Borrowers should be aware that they could incur significant losses as a result of adverse exchange rate movements, particularly when there is a mis-match between the currency of their loan and the currency of their assets.
We do not offer advice on this service and you must advise us when we are setting the mortgage up if you would like the option to switch currency. This service is reserved for those customers who feel comfortable and competent of making their own informed decisions on what currency they would like their mortgage to be denominated in. Choosing to add in the option to switch currency will result in the loan to value of the mortgage being reduced by 5% for all countries.
Any currency switching requires an instruction from you, with at least 3 working days notice. Switches in currencies, other than from GBP, generally take place every three months when your repayments are due. Forward exchange contracts can be arranged at our sole discretion for settlement of your mortgage, providing these coincide with your next scheduled payment.
For more information on the currency switching service please contact us.
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Need more information?
For more information on the International Mortgage Service or to begin your application please contact us.