Mortgages

Dream Homes Uk and AbroadQuality properties from Europe and around the world.

Dream Homes UK & Abroad has teamed up with specialist financial services, who have dedicated expert brokers, who will utilise much experience, in the mortgage industry, to make sure that you find a mortgage to suit you, and your budget, with access to over 3000 lenders worldwide.

OVERSEAS MORTGAGES

There are over 275,000 people from the UK already overseas property owners and this figure is set to climb a lot higher in the coming years according to the Office of National Statistics

If you are considering buying a property abroad you should make sure you take specialist mortgage advice. The house buying process varies considerably from country to country, with different legal systems and local customs.

For most people the best option is to arrange your overseas mortgage in the currency you are earn income in. If however you are planning to receive rental income from your property in the local currency then a mortgage in the local currency may be the better option, depending on the mortgage lender's criteria.

If you already have a residential property in the UK you may be able to raise money for a deposit by remortgaging and releasing equity from this property.

Why use a broker?

When considering buying a property in a foreign country it is important that you understand,

The sales process in that country
The interest rates in that country
How you are expected to repay your mortgage (repayment or interest only mortgages)
Term of the mortgage (the lender may only allow relatively sort repayment terms)
Time scales that each lender works to
Currency fluctuations in that country
Lenders criteria (what information will you be expected to provide)

Our specialists understand and have expert knowledge of the lending criteria and sales process in all the major countries in the world.

They will assess your requirements and give you first class professional advice on which is your best option to purchase your property overseas.

Whether you are buying for investment or purchasing your dream home in the sun the team at Dream Homes will be with you every step of the way.

Contact info@dreamhomesabroad.co.uk Dream Homes UK & Abroad and we will link you with our mortgage specialists, or click on the link below.

Tips for buying abroad

You should always seek specialist advice from independent solicitors, architects and surveyors before committing to purchasing a property overseas. They should know the country's laws and the local house buying process.

You should always arrange an independent valuation of the property. The valuation will highlight any problems with the property itself but also, and very importantly, any boundary disputes.

You should never sign a contract that you do not understand. This includes translated contracts - always get the original contract checked by a specialist.

COMMERCIAL MORTGAGES

Commercial lending is getting evermore popular. More and more people are seeing the benefits of investing in commercial property.

Whatever you need a commercial mortgage for:

Whether you are starting a new business or buying an existing business, whether you are looking to purchase a small shop or a chain of hotels we want to help

Loans are available for:

New business start up
Buying existing business
Loans from Ł25k to Ł25m
CCJ', Arrears, IVA's and self employed considered
New or refinance available

Types of UK Mortgage Rates

Variable rate

This is a rate that is set by the lender and as its name suggests is variable and will change at the lenders discretion. There will be no arrangement fees for this mortgage and no early repayment penalties if you overpay or settle the mortgage. However these types of mortgages do not tend to be as competitive as other rates on the market.

Base Rate Tracker

This mortgage will track the Bank of England Base rate, a rate as it suggests will change as the Bank of England changes the base rate. This type of mortgage is more transparent as interest is generally calculated on a daily basis and the interest rate you pay will change the very day the Bank of England changes the base rate. There could be an arrangement fee to start this mortgage and an early repayment charge if you pay the mortgage off early

Discounted rate

The lender will now give you a discount off their standard Variable rate (SVR). This will offer a true saving and you will be paying less than you would do on the SVR. Points to remember are that this type of mortgage is still variable and your payments can go up and down, there may be an arrangement fee to start this mortgage and an early repayment penalty if you pay the mortgage off early. Also to remember is because it reverts back to the SVR at the end of the discounted period your payments are guaranteed to go up.

Fixed rate

As the name suggests, the lender will fix your monthly payments for a given period of time. This type of mortgage is ideal for budgeting as you will know your exact monthly payment during the fixed rate period regardless of interest changes. These types of mortgages usually have an arrangement fee to start them and early repayment charges if you settle your mortgage during the fixed term.

Capped rate

This type of mortgage is a variation from the fixed rate. This time the lender will put a cap on the maximum rat that you will pay. If the lenders SVR drops below the Cap, you will pay the lower rate. If the lender SVR then goes above the cap then your payment will be based on the capped rate. Again with this type of mortgage there will most probably be and arrangement fee and an early repayment charges if you pay the mortgage off during the capped period.

Flexible rate

This is a variation of the Tracker rate. With this particular mortgage the lender will give you a number of flexible options. You will be able to make unlimited over payments on your mortgage, once you have over paid your mortgage you will be able to draw down capital to the amount over paid, you will be also available to take payment holidays. There may be an arrangement fee to set up this mortgage and the interest rates tend to be higher than on the Tracker rates because of the flexible options given.

Buy to Let Mortgages

It is getting more and more common for people to invest in property for the opportunity of long term returns. This can be done via a Buy to Let mortgage.

A Buy to Let mortgage allows you to purchase a property and rent it out to a third party (i.e. tenants)

To get a Buy to Let mortgage certain criteria must be meet:

You will need to put down a deposit typically 15-20%

The rental income must exceed the monthly mortgage payment by a certain percent. This can be as much as 130% of the monthly mortgage payment. Although it can be less with some lenders.

Depending on the lender, the amount you will be able to borrow will generally be dependent on the rental income achievable on the property rather than your income.

The rental income available on the property will be confirmed by the surveyor appointed by the lender to value the property.

Rental Guide for UK property

You should be aware of the property location and how popular the rental market is in that area. It may be worth considering talking to local letting agents for advice.
The local amenities in the area, shops, restaurants, transport links and the overall safety of the area.
It is your responsibility to ensure the property is rented out. The mortgage will still need to be paid whether there is a tenant in the property or not.
You can choose to use a reputable letting agent who will find the tenants for you and will check references and credit score them to make sure they are a suitable candidate to rent out your property.
it is your responsibility that the property has a gas and electricity safety certificate and if you rent the property out furnished, you will be required that all furniture is fire resistant

Re-mortgage Process

Step 1: Once you have accepted your Re-mortgage recommendation you will formally apply for the mortgage.

Step 2: The mortgage application is sent to the Lender along with any supporting documents that the lender may require. These could include pay slips, bank statements and identification.

Step 3: the lender will instruct a basic valuation. Unlike when a property is purchased a basic valuation is usually serf ice for a Remortgage as this is the minimum that the lender will need and as you live at the property you will generally be aware of its condition. Most lenders will value the property free of charge as an incentive to change to them.

Step 4: As long as the property has valued up to the specified valuation and all supporting documents have been approved by the lender you will then receive the formal mortgage offer. It is very important that you read this carefully read and check all the details and conditions set in it.

Step 5: The solicitor will now request the deeds from your existing lender and once they have all the information that they need they will ask you for a completion date (the completion date will need to coincide with the end of any penalty periods to avoid any extra fees).

Step 6: The mortgage will now complete and you will now pay your mortgage payments to the new lender (it is also important to make sure that last payment to your old lender is paid, if it is close to the mortgage finishing this will normally be refunded to you, providing that your mortgage is paid in advance)

CONTACT US

Whether you are buying:-

· a home in the UK

· for investment

· a business

Or, purchasing your dream home in the sun, we will be with you every step of the way.

You may be interested in:

How much can I borrow for an overseas mortgage?
How much can I borrow for a UK mortgage?

How much can I borrow for a commercial venture?

How much can I borrow for ‘buy to let’?