Mortgage Guide 2016 - deVere Mortgages

Mortgage Guide

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Contents

3 deVere Mortgages

5 UK resident buying in the UK

7 Income vs Expenditure

9 What should you consider when determining your new home budget?

11 Why use International Mortgages?

13 Mortgages for UK expatriates

© 2016 Mortgage Guide. All rights reserved. 3

If you are looking for your ideal mortgage, it is in your best interest to seek expert and professional advice. By doing this, you can ensure that you get the very best service available. At deVere Mortgages, we seek out the very best UK and overseas mortgage solutions for all our clients.deVere Mortgages, as part of the world’s leading independent financial consultancy deVere Group, offers sound, reliable and expert Mortgage Advice to UK residents and Expatriates around the world. We are able to assist you in finding and arranging a mortgage which is perfectly suited to your needs whether you are looking for a new mortgage or to re-mortgage a property in the UK or your country of residence. If you already own property overseas and wish to unlock some equity from it, re-mortgaging may well be an option worth considering.

MORTGAGE GUIDE // 2016

What factors should you consider before you move?

• Is it the right time to take such a step?

• How much can you afford on a mortgage?

• According to your circumstances, what kind of mortgage would you like?

• What is the housing market like at the moment?

• What fees are involved?

• Are the fees reasonable?

• How long will the loan take to repay?

• What terms are there for the loan including new interest rate, loan amount and the length of the repayment period?

At deVere Mortgages, we pride ourselves with our ability to provide independent and impartial advice to our clients for all their property needs. Our Specialist International Mortgages team have a combined experience in mortgages and overseas financial services spanning decades. All of our clients will receive a truly comprehensive range of services, which even includes foreign currency exchange and expert legal advice through our network of carefully selected partners.

deVere Mortgages

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Purchasing a new home is a great experience and it is likely to be one of the biggest investments you will make, if not the biggest. However, if you are a first time buyer or moving up the property ladder, you may require additional funding and will most probably need to take out a residential mortgage.

A residential mortgage is a loan against the value of your home. The mortgage is paid off by monthly instalments over many years according to the plan you choose. It is not uncommon for people who have residential mortgages to change mortgage products or providers as the housing market and personal circumstances change over time.

There are a number of questions you should ask yourself prior to making a decision, including:

• Should you opt for a repayment mortgage or interest only mortgage?

• Should the mortgage be provided by a bank, specialised lender or building society?

• Should the mortgage interest be based on a variable, fixed or capped rate?

Choosing the right mortgage is essential and is not always as straightforward as it may seem. We can help you by finding the solution that seems most appropriate for your circumstances.

UK resident buying in the UK

© 2016 Mortgage Guide. All rights reserved.

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Fill in the form below to get an idea of your current expenditure.

Income

Income (Net)

Basic Salary

Annual Bonus

Overtime

Company Living Allowance

Pension Income

Investment Income

Rental Income

Benefits

Other Income

Total net Income - Total Expenditure = Disposable Income

Expenses

Mortgage/Rent

Credit Cards/Loans

Council tax/Utility Bills

House Keeping

Insurance

Social

Pension Contributions

Other Major Expenditure


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Solicitor’s fees for the legal work involved in buying your new home (and selling your current home if you have one)

Estate agent’s fees. As the buyer you won’t pay this, the seller does.

Stamp duty. This is a tax you pay when you buy a property. Contact us for a personalised overview of your potential stamp duty liability.

Valuation fees. This is what your mortgage lender charges to value your new home.

Survey charges. It’s always worth getting a structural surveyor to check your new home for defects and problems before you go ahead.

Moving costs. You’ll need to set some money aside if you want to hire a van, use a removal firm or store your possessions for a while.

What should you consider when determining your new home budget?


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It is essential to understand that there are considerable differences between overseas and the more traditional UK mortgages. When arranging for an overseas mortgage there are many potential pitfalls which can leave you exposed if you have not taken the appropriate advice. In the current overseas property market you should be more diligent and stick to decisions that you have made. It is essential that either you or your mortgage specialist is fluent in the language of the country that you are buying in to avoid disappointment at a later stage.

Every country has a different set of laws governing property in separate regions. If you are not aware of some of the regulations it could lead to misunderstandings and potential heartbreak further along the line. It would be a good move to get in touch with a renowned international mortgages expert who will be able to guide you through the process and inform you of any rules you must adhere to when buying property overseas.

Whether you are at an early enquiry stage or have already found a property, it is always a good idea to seek expert help in order to advise you on lending criteria, property laws and help you with the customs of property buying in the area.

Why use International Mortgages?


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Buying a property in the UK is an appealing option for many UK expatriates, either as a potential home or as an investment. Yet there are a number of things to consider before you start looking into a mortgage that may be right for you. Most importantly, you need to decide whether the property you are looking to buy will be a home for you and your family or an investment property to let.

Residential mortgage

Expatriates looking to buy a residential property are usually considered good risks by mortgage lenders. As such you should be able to get a mortgage on a UK property on fairly similar terms as a UK resident with a good credit rating. However, some conditions apply:

• You can’t usually apply for more than a 90% mortgage.

• It can be difficult to apply for a mortgage in the UK as a self-employed expatriate.

However, as long as you meet the income criteria and can prove so, it should be straight-forward.

Buy to let mortgage

UK buy to let mortgages are required for properties that you are looking to buy as an investment.

A wide range of loans are available and you should


not have a problem finding a suitable expatriate mortgage policy.

You may find it helpful to speak to a tax consultant to find out more about the implications of owning and running a rental business. You will want to ensure that the business is established on the right basis to optimise your tax position. You should be able to offset most of the expenses such as maintenance costs, letting agency fees, mortgage interest and insurance against the rental income received to calculate your profits before tax.

Onshore vs Offshore

A number of potential benefits are available whether you have your mortgage onshore or offshore.

The best option for you depends on your current circumstances. A financial consultant can help you consider the alternatives in line with your requirements.

Choose a currency

It is worth considering which currency you would like to pay your mortgage in. If you get paid in GB pounds, it is more beneficial to have your expatriate mortgage in GB pounds as well. However if you get paid in another currency you might want to consider having your mortgage in that currency in order to protect your money from day-to-day

changes in the currency exchange rates.

Receive financial advice

Whether you are a UK resident or a British expatriate looking to buy a property in the UK, getting to grips with the complexities of UK mortgages requires professional advice. Help yourself by finding the right mortgage solutions for your circumstances.

At deVere Mortgages, our consultants have been trained to provide the best mortgage advice that is right for your circumstances and requirements.

Mortgages for UK expatriates


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Capital Raising

If you wish to release equity from your current property, either for a special project you have in mind or to buy a second home, you may wish to consider taking expert advice on the process.

It is essential that you are recommended a mortgage product that suits your circumstances and helps you achieve the goal you have set yourself. You even have the option to take out interest only mortgages which could potentially help you keep costs down.

Remortgage

If you are considering remortgaging your existing property because you are either paying too much for it, or wish to reduce payments on it until you have sold it, then a remortgage could be the answer for you.

By remortgaging your property it could allow you a more comfortable lifestyle than your previous mortgage allowed.

Insurance

Choosing the right insurance product can be difficult especially if you are new to a country, their language and the legal system. This is why it is imperative to choose an insurance broker that will recommend the right products to match your circumstances.


Living overseas you may wish to consider insurance for the following to prevent any unwanted costs should something go wrong:

Foreign Exchange Services

To make your money go further it is important that you have access to fast and secure money transfers or currency exchanges. It may be worth checking with your mortgage advisor as to whether that company has that facility or shopping around until you find one that you are comfortable with. Money exchange and transfer services help make your money go further when living out your dream overseas as you will gain the best possible exchange rates.

Your mortgage solutions

deVere Mortgages is an overseas mortgage, insurance and overseas investment specialist aimed at providing independent and impartial advice to clients for their mortgage needs. Clients receive a comprehensive range of services including overseas mortgage plans, foreign currency exchange, insurance and expert legal advice.

We work with a panel of lenders in each country ensuring a wide range of mortgage products are available to our client base. We will always recommend the best product to suit your own specific needs and can offer you exclusive terms which may not even be on the open market.

deVere Mortgages are able to arrange foreign mortgages for purchasing property around the world.

We have also developed relationships with specialist expatriate insurers allowing you to get the cover that you and your family deserve. We offer a wide selection of products which are provided by international insurers based worldwide and are able to offer plans including healthcare schemes for corporate groups.


deVere Mortgages is a trading name of deVere & Partners (UK) Ltd who are authorised and regulated by the Financial Conduct Authority (469151). deVere & Partners (UK) Ltd Registered Office Address: 3rd Floor, Peek House, 20 Eastcheap, London EC3M 1EB. Registered in England No: 5260529. This material is for information purposes only and does not constitute an invitation, offer or solicitation to engage in any investment advice or recommendation, or an offer of solicitation for a transaction in any financial instrument. The material may not be suitable for you, and you should therefore always seek professional independent financial advice before making a decision to invest in any product. The information provided and contained in this promotional material is believed to be reliable as at date of issue, but is subject to change without notice and makes no representation as to the completeness or accuracy of the information or of any opinions expressed.

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Your home may be repossessed if you do not keep up repayments on your mortgage.

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Mortgage Guide 2016 - deVere Mortgages