Money Exchange Rates & Overseas Mortgages – Some Useful Information

June 26th, 2012

We have the best money exchange rates for UK residents looking to buy a property abroad and potentially secure a mortgage. When you are buying a property in the UK, there is no end to the choices when it comes to financing the venture.  There are mortgages for lenders of all financial walks of life, from offset mortgages, 100% mortgages, buy to let, interest only, adverse credit mortgages and everything else in-between.

It’s a little different when you buy a property abroad, financial mortgage arrangements tend not to be anywhere near as flexible, sophisticated or as easy to attain as they are here in the UK. The likes of HSBC and Abbey do have lending partners to help you with lending in the likes of Spain and France but you could be searching forever and a day trying to find help in Dubai, China or Croatia, in fact until recently, many foreign countries were really only interested in cash rich buyers.

If you have found the right property, in the right country what are the next steps in terms of financing the purchase? Any equity you are able to put down as a starting point, will always help, this could be via releasing equity from your existing property or savings. Banks overseas have recognised there is now a strong market for UK buyers and have began providing mortgages and lending toUKinvestors. There is still a big difference between these mortgages andUKmortgages, which is that foreign mortgages are nearly always created from scratch and are bespoke to the individual. This means the whole negotiation process and finalising and agreeing terms is often frustrating and can take forever. There are many more factors to consider with an overseas mortgage, you may experience cultural barriers to understanding legal and financial issues and you will more than likely also have matters of foreign currency and money exchange rates to consider. For instance you may need to convert your sterling and get the best rate from pound to euro. In summary buying a property abroad can take a little longer and may not be quite as straight forward as it might be closer to home, regardless of this, it can be the best decision you make in your entire life. For your best exchange rate pound to euro visit us at Best Exchange Rates UK.