You can arrange a mortgage to purchase property overseas in most of the world’s developed countries. These properties can be used just as holiday homes or they can be utilised to generate a rental income from holiday makers (this income may be seasonal). In some countries the rate of growth, property inflation can be greater than the UK!
TOP TIPS FOR BUYING ABROAD
Never sign a contract that you do not understand (for example – if it is in a foreign language).
You should have a separate legal “Last Will and Testament” in place in the country that you are buying in.
Always ensure that you seek specialist advice from independent Solicitors, Architects and Surveyors before considering a purchase overseas. They should be proficient in your chosen country’s laws and processes and also know the specifics involved in buying a property there.
Before proceeding with the purchase (and would especially apply to a re-sale property, regardless of age), ensure an Independent Valuation of the property is carried out, which should point out any problems with the property – i.e.: subsidence, damp, wiring defects – and could also possibly highlight any boundary disputes etc.
Ensure you do not inherit a debt on the property before you purchase, which a solicitor should be able to check – i.e.: If the developer has borrowed money to build the development and this amount has been allocated against each plot as additional security to the developer’s bank.
Make sure you know what mortgage you’re buying
Always give yourself a `cooling off` period if you see a `must-have property` and are tempted to put down a deposit there and then.
If you are arranging finance on the property, ensure that this is stated in any contract and you have an ‘opt-out clause’ if the loan is not agreed (which will ensure any deposit paid is refunded).
Try to arrange your mortgage finance ‘in principle’, before agreeing to purchase the property, or before signing any contracts and paying over a deposit.
Arrange your mortgage in the currency that you earn in where possible, unless you are going to receive rental income from that property in the local currency and then this may be a possible alternative option, dependent on the lender’s criteria.
Think about combining your cash with friends or family: it could bring a Villa with pool within your financial reach, rather than simply an Apartment.
Check with the Estate Agent or vendor that you are aware of the costs charged by the legal and government authorities for purchasing a property in your chosen country.
Open a bank account in your chosen country and ensure you get a Certificate of Importation for the money you bring in from your home country.
Set up standing orders in a local bank account to meet bills and taxes. Failure to pay your taxes in some countries, such as France, Portugal and Spain, could lead to court action and possible seizure of your property.
Remember that bills do not end at the asking price. Lawyer’s fees, Taxes, Insurance etc must all be met in your host country and can often be more expensive.
Debt consolidation is a loan used to repay several other loans. In other words it combines several debt obligations into one debt.
If you find you have several monthly payments on a number of different loans, you can make things easier for yourself by bringing them altogether or consolidating with one single loan to pay off the total debt. This would mean that you only have one monthly payment.
Debt consolidation usually reduces the borrower’s monthly payments by lowering the interest rate or extending the repayment period or sometimes both. If you have generated a number of store cards, personal loans or credit cards debts over a period of time, you will probably be finding it hard to make regular monthly payments. It can get rather worrying if you have got yourself into what seems like a never ending tunnel of debt.
The need for Debt Consolidation
There has been a considerable increase in the number of people seeking debt advice; many are families who find they have to spend more than 50% of their annual income on debt repayments. There are many reasons why people get into debt. Maybe they haven’t had time to sit down and budget properly to see how much actual spare money they have each month, it could be that a divorce has made repayments difficult to meet, bereavement can also be a major factor, or maybe redundancy is to blame. Even having a new baby can affect monthly income, so it is not always through any fault of your own that you get caught up in escalating debt cycle.
The aim of Debt Consolidation
The aim of a debt consolidation loan is to lower your monthly payments thus taking away some of the pressure on you. You can usually find a debt consolidation loan with a lower interest rate when it is secured on your home. A lower monthly payment can be obtained by increasing the term of the loan.
A Debt Consolidation Loan can in fact help you on the road to a better financial status; if you keep up payments it can help you get a good credit rating. However, you should realise that in the short term you are increasing your overall debt by arranging repayments over a longer period.
Money for any purpose
A Personal Loan is usually a loan taken out by someone and used for personal reasons rather than say business purposes.
It could be used for anything from decorating your home to plastic surgery. A personal loan may or may not be secured on your home depending on your circumstances.
A Personal loan is based on a consumer’s income, debt and credit history but being a homeowner means you can usually get better interest rates.
If you are a homeowner then you can get a secured personal loan and if you are a tenant then you can get a tenant personal loan. If you fail to make repayments your home is used as collateral.
Secured Personal Loans are a lower risk to lenders meaning that secured loans are offered with lower interest rates.
There is also the option of a Personal Debt Consolidation Loan. This loan is used when you have several debts, such as credit cards and personal loans, but wish to only make one monthly payment instead of several. You can consolidate the debts and restructure payments so that you pay only one payment per month and you can even expand the loan period leaving you with a smaller repayment to make each month.
The re-mortgage process is virtually identical as to the new mortgage process but it can be dealt with much faster. Moving your mortgage to a new lender, or re-mortgage as it is more commonly known, can be considered as being financially more sound than buying a new home. It is now easier to switch mortgages to another lender than at any point in the past. Ever rising house prices have meant many homeowners are sitting on a large amount of equity. Releasing some of this equity can be a cost effective way of gaining secured funds for any purpose.
By re-mortgaging you could reduce your monthly payments by hundreds or even thousands of pounds a year by switching to a more competitive re-mortgage rate, Consolidate Loans into one manageable monthly payment, Clear, Mortgage Arrears* and Debts on your property, using the current value of the house to help clear credit problems, release the equity in your property and use the money for an extension, holiday of a lifetime, new car or for business capital.
Before making a decision to re-mortgage you should consider the following points. The saving you make on a new lower interest rate mortgage might be out balanced by charges encored when ceasing your current mortgage, as well as fees demanded by your new lender. There may be surveyor’s fees because the new lender will want to value your home. It is always best to ask a professional.