Tancrede de Pola (OP Columnist)
BUYING property overseas can seem like a daunting prospect… but it needn’t be.
Whether you are looking to make the move to Spain, or you are an expat looking to branch out across Europe, the Finance Bureau can help buyers make their dream move come true.
Searching for a home abroad is an exciting prospect but it is just one piece of the puzzle. The larger – more complex – part of that puzzle is financing a move.
While a small number opt for cash transactions – if lucky enough to be able to – most buyers will need to take out a mortgage.
And the most important thing to remember – in the words of Michael Jackson – is ‘you are not alone’. Gaining financial advice is the most important thing to do before taking the property plunge abroad.
Despite a recovering Eurozone, most banks in your home country still won’t finance a move overseas. Although some international firms do offer products in more popular countries. (For example HSBC will lend on property in France, Malta, Greece and Dubai while Spanish lender Santander offers mortgages in Portugal.)
However, in most cases you’ll have to arrange a loan with a bank based in the country in which you’re looking to move to – which can obviously have its obstacles if you don’t speak the language or aren’t familiar with the country’s processes.
But that is where the Finance Bureau can help Brits looking to move to Spain.
With established links to all the major Spanish lenders the Finance Bureau acts as a go-between for the client and the bank – but it is important to remember that the broker is not connected to the bank and works to find the buyer the best deal available.
When buying abroad it is imperative to know how much you have to play with when scouring the foreign property market. This will be dictated by various factors including the amount of deposit available as well as the level, any type, of income of the applicant.
It is therefore important to remember that banks in most countries will not take property rental income into account when offset against the loan repayment.
When looking for a property, mortgage amounts are only measured against your personal income and outgoings must be between 30 to 35% of your income in order to qualify.
But the best – and easiest – way to make sure your dream move abroad comes through with no hiccups is to talk to a broker… that is what we are here for after all.
“That is what we are here for after all” No, you are there to make money from gormless buyers.
You can say that again, it turned out to be life ruining for the Priors when they moved from the UK to Vera, Almeria, they ended up having their house demolished and losing everything. They now live in a garage with no electricity and a campervan for a bathroom.
It is always a leap of faith to some extent but some places are more risky than others as the Priors, and others, have found out.
Jane G,
the difference today is – the net. If the Olive Press had been online before we thought about moving abroad we would never have moved to Spain. As a builder I knew I would never entertain buying a Spanish built property, nor since the move to France would I buy a French built property that I did’nt spec myself and be on site every day to make sure that everything was done to my satisfaction. Not that French construction is’nt way better than the Spanish but it could still be a lot better.
Nowadays there is simply no reason for not being clued up. If you are lazy then you deserve all you get, the Priors and others did’nt have that opportunity as always – caveat emptor.