If you are thinking of mortgaging a property abroad you need to do your research, every country has different policies and guidelines when it comes to mortgages and not all will be the same as your home country. All mortgages are going to vary slightly in each country, some countries will offer you an interest only mortgage whereas others will prefer you to take out repayment mortgages so it really depends where you want to live and what kind of deal you want to make. You can arrange fixed rate mortgages in some cases that will last the length of your mortgage, so it all depends on your preference.
Some lenders abroad are subsidiary to UK lenders meaning you can get similar deals so you do have a lot of selection but it is still best to research beforehand. As any lender in the UK would, an overseas lender will look at your incoming and outgoings. The only difference with this is that they will have different criteria so you may be able to lend more abroad or less. The average time you will have to pay a mortgage back will vary too but as a lot of counties have cheaper property than the UK it could work in your favor. Most of the time you will be required to put a higher deposit down overseas, this is depending on which country you are buying and if they have special regulations for overseas buyers.
Most countries require a higher deposit also and sometimes won’t let you lend more than 60% of the property’s value. But like with most companies you may be able to negotiate a good deal with help from a specialist broker. If you don’t keep up payments on your overseas property then it would be extremely difficult for a UK lender to repossess your home, and on that basis it is nearly impossible to get a UK lender when buying abroad. This being said, there are still plenty of UK lenders who will refer who they believe is a reputable overseas mortgage company.
This way you can make sure you are adhering to local regulations and guidelines that a UK company may be unaware of. Another idea is to deal with a bank you know from the UK that is located in your country of choice of course. They may have deals near enough the same as deals in the UK. Not only this but it is the comfort of dealing with a recognized company and can give you that peace of mind. Applying for a mortgage abroad can be very difficult and complex and it is so easy to make mistakes and not even realize, so it is always a really good idea to seek help from a broker before making any major decisions.
They will help you find a good deal and help negotiate the terms and conditions to your satisfaction. This is going to cost but what you gain from their help is going to be worth every penny.