Whether you’re hoping to join the ranks of those who have purchased a second home abroad or you’re an expatriate looking for a mortgage to purchase ‘back home,’ the task of finding the best international property finance deal can seem like quite a daunting one.

Add to this fact the consideration that the average home owner will pay out far more in interest over the lifetime of their home loan than their home actually cost in the first place, and you can see why working to secure yourself the best possible international mortgage or property finance deal now could save you tens of thousands in interest over the lifetime of your loan.

This article will give you a few pointers to make the search for the most ideal and personally suitable finance method that much simpler; and bear in mind that a large part of your search for the best loans and repayment vehicles currently available can be carried out on the internet, making the whole process that much more convenient and time efficient for you.

Step One - You need to understand the different types of finance arrangement that are available internationally in order to determine which one suits you and your circumstances best.

International Mortgages - depending on the country you’re interested in buying property in and on your own personal financial circumstances some home grown lenders offer straight mortgages for overseas property purchase.  HSBC offers mortgages for Britons interested in buying in France for example, Lloyds TSB have a scheme for Britons to raise a mortgage to purchase property in Spain. 

Mortgage types and repayment methods are standard however there is often the added criteria that the purchaser is already a home owner in the UK and mortgages are usually only available for up to 70% of the purchase price.  Buying in this way can remove a layer of confusion and complexity for the interested purchaser as the whole process follows the path they have likely taken for a domestic property purchase, but buying in this way can prove more costly.  Don’t forget either that an international mortgage will likely be secured on the foreign property.

Local (Overseas) Mortgages - it is sometimes possible to raise a mortgage locally in the country you’re buying in.  This is especially the case when one of the larger international banks like HSBC has a subsidiary in that particular country or the country, for example Australia, has close ties with the UK and can access personal credit history etc.  It is important that you make sure you understand the terms and conditions of the loan and the repayment duration and terms as well, not all countries have the same mortgage arrangements as the UK and it is up to you to aware of the terms of any contract you enter into.  Furthermore make sure you check the interest rates available to you and compare them with those available from an international lender ‘back home.’

Expat Mortgages - as an expatriate it can make a lot of sense to purchase ‘back home’ either for investment purposes or as a base for you to return to at some point in the future.  If you do not purchase before you become non-UK resident though it can be tricky to secure a mortgage to buy ‘back home.’ If you had a strong credit history before you expatriated and you are now in receipt of income to support your mortgage application however, there are a number of lenders interested in attracting expat business.  Some of the major high street lenders will charge you a bit of a premium for the ease of application and service they offer and it is worth while shopping round on the internet to see who else is offering specific expat mortgages.

Usually you should be able to borrow up to 85% of the property’s value and when it comes to proof of income this can be made up of earned, pension, investment and rental income.  As a non-UK resident it is very difficult to secure a non-status or self certification loan.

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