Why UK Homebuyers Are Looking Abroad to Buy Mortgages

With UK home prices continuing to rise, many potential homebuyers are looking abroad in order to buy mortgages. Foreign home enquiries have risen dramatically in recent years as more and more people are finding it increasingly difficult to get onto the property ladder back home. For others, owning a home abroad offers a sunny respite from cold UK winters along with a valuable investment for the years to come. The Eurozone, despite the recent troubles with its currency, remains a popular choice, with France and Spain ticking all the right boxes for those looking to buy property abroad. Other destinations, such as Turkey, are also becoming popular. This article will look at what makes these countries so attractive to UK consumers, and what homebuyers should be aware of before purchasing a property abroad.

France

France continues to be the most popular destination for UK citizens looking for a home abroad for a number of reasons. Although the Eurozone economy has faced much trouble in recent years, France has ridden through the crisis relatively unscathed. Its location is also ideal, being only a couple hours away by flight or train for millions of people in the UK. And although it may be close, France offers much better weather, especially in the south with its idyllic countryside and glamorous white beaches. Furthermore, according to Mortgage Introducer, mortgage rates in France are currently at a 60 year low and buyers can typically raise up to 80 per cent loan to value on their new homes. These figures make France an even more affordable option than before.

Spain

Spain has been hit hard by economic problems in recent years, driven partly by an unsustainable property boom. As a result, the country is dotted with many homes for sale with increasingly tempting asking prices. Because of the economic troubles here, negotiating a lower price is fairly easy as plenty of people are eager to sell. Therefore, getting a bargain on a great Spanish villa is easier than ever. Of course, the climate, culture, and accessibility are also attractive features for UK homebuyers. On the downside, mortgage rates tend to be higher in Spain than in France, and buyers will need 35 per cent of the propertys value for a deposit.

Turkey

Turkey has a booming economy and has avoided the troubles that have plagued other Mediterranean countries. With a climate similar to Spain and France, it is no wonder that Turkey has become a popular destination for UK expats. Demand for rental properties is also increasing as Turkey becomes increasingly popular for tourists, meaning UK citizens who own a second home in Turkey could turn it into a lucrative investment by renting it out for part of the year. Furthermore, the low cost of living here makes it good value for money.

Thing to consider when buying property abroad

While buying property abroad is certainly worthwhile for many people, it is a process that must be approached carefully. When deciding on a property, homebuyers should visit the place first rather than relying on internet photos and descriptions (both of which can be highly misleading). Property laws differ overseas from the UK, especially outside of the European Union, so homebuyers need to be sure that they are working with a qualified real estate broker when searching for properties abroad. Also, when considering a property, the amount of money a homeowner will have to spend on maintenance is important, especially if the property is going to be unoccupied for a significant portion of the year. Other factors to consider include taxes both abroad and back in the UK, legal fees, and what kind of deposit a homebuyer is expected to put down to obtain a mortgage. Furthermore, homebuyers should only ever hand over such a deposit to a lawyer or qualified real estate broker.

Buying an overseas property is a great way to get on the property ladder while enjoying the sun and sand that warmer countries have to offer. While destinations like France, Spain, and Turkey offer tempting opportunities to buy mortgages at good rates, it is important to keep other costs in mind as well when buying abroad. Carefully considering all factors of purchasing a property overseas will mean homebuyers are much more likely to gain from their investment well into the future.

Resource

“Foreign home enquiries up 62pc.” Mortgage Introducer. mortgageintroducer.com/mortgages/247569/5/Industry_in_depth/Foreign_home_enquiries_up_62pc.htm

The author of this article Sam Jones recommends to his readers that uSwitch website is the most up to date when considering to buy a mortgage.  

 

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