Cyprus
It is possible to borrow up to 75% of the mortgage valuation or purchase
price (whichever is lower) when purchasing a new property or remortgaging
an existing one for home improvements in Cyprus. If you are remortgaging
for any other purpose, the lender will consider your application on
a case-by-case basis.
The minimum loan SPF will undertake to arrange is £150,000;
there is no maximum. Loans are available in all major currencies,
with a maximum mortgage term of 15 years, available to individuals
up to the age of 65.
All applications must be supported by proof of income, including your
previous three months’ payslips, six months’ bank statements
and a P60 or employer's reference. If you are self-employed, you must
provide audited accounts for the past three years, plus business and
personal bank statements for the preceding 12 and six months respectively.
Cypriot lenders won’t take into account potential rental income
from the property when calculating whether you can afford the mortgage
repayments buy they will consider your existing liabilities, including
mortgage/rent payments, personal and bank loans and maintenance payments
together with your proposed Cypriot mortgage payments. The total must
not exceed 35% (this percentage can vary) of your net monthly income.
Say, for example, your UK mortgage is £200 a month, your car
loan £50 a month and the proposed Italian borrowing £250
per month, your gross monthly pay needs to be at least £1,500
or your mortgage will be rejected.
While SPF takes all reasonable steps to secure a mortgage on your
overseas property as soon as possible, delays may occur due to the
Cypriot legal and administration system.
To find out whether you qualify for a Cypriot mortgage, see Applying
for a mortgage.
Canada
You can borrow up to 75% (65% in rural areas) of the mortgage valuation
or purchase price (whichever is lower) of a Canadian property, or
remortgage an existing property for home improvements. Remortgages
for other purposes will be considered on a case-by-case basis.
The minimum loan SPF will consider is $300,000 (Canadian Dollars);
there is no maximum. Only repayment mortgages are available, and you
must be under the age of 65.
You must provide proof of income, such as your last three months’
payslips, six months’ bank statements and your P60 or an employer’s
reference. If you are self-employed, you must provide audited accounts
for the past three years, along with copies of business and personal
bank statements for the past 12 and six months, respectively.
Canadian lenders may take into account up to half of any potential
rental income from the property when calculating whether you can afford
the repayments, providing it has been on the rental market with proof
of leases. Most Canadian banks will also take your existing liabilities
into account when calculating affordability, such as mortgage/rent
payments, personal and bank loans and any maintenance payments. Once
these are added to your proposed Canadian mortgage payments the total
must not exceed 38% (this percentage can vary) of your net monthly
income.
To find out whether you qualify for a mortgage in Canada, see Applying
for a mortgage.
US
You can borrow up to 75% of the mortgage valuation or purchase price
(whichever is lower) of a US property or remortgage an existing one.
The minimum loan SPF will consider is $250,000; there is no maximum.
Repayment and interest-only mortgages are available to individuals
under the age of 75, with loans denominated in Sterling or US dollars.
The maximum mortgage term is 25 years.
Mortgages can be arranged on a full-status or self-certification basis.
With self-certification mortgages, a deposit of at least 30% of the
property price is required; applicants must also be homeowners and
resident in the UK.
In most instances, buyers can borrow up to 3.5 times income although
a strong credit history is essential. US lenders may take into account
potential rental income from the property providing it has been on
the rental market with proof of leases. They also require proof of
income, which can comprise earned income, pension, investment or rental
income. However, not all lenders will take all of these into account
when calculating how much you can borrow.
To find out whether you qualify for a mortgage in the US, see Applying
for a mortgage.
Bulgaria
It is possible to borrow up to 70% of the purchase price when buying
a property in Bulgaria. Only repayment mortgages are available for
a maximum term of 15 years up to the age of 70.
SPF will consider a minimum loan of Euro200,000 (loans only available
in Euro). Variable rates are available from 7.5% and proof of income
is required.
To find out whether you qualify for a mortgage in Bulgaria, see Applying
for a mortgage.
Hungary
Mortgages in Hungary are offered on a bespoke basis, in Euro,
Sterling or Hungarian Florint. It is possible to borrow up to 70%
loan to value for a maximum term of 20 years. The minimum loan size
SPF will consider is Euro200,000.
Repayment mortgages only will be considered and you must also be
prepared to pay a lender fee: 1% of the mortgage amount on completion
and an additional 1% each year, which will be added to the interest
rate. Lenders require proof of income in all cases.
To find out whether you qualify for a mortgage in Hungary, see Applying
for a mortgage.
Ireland
It is possible to borrow up to 80% loan to value when buying
in Ireland, for a maximum term of 35 years. Mortgages are only denominated
in Euro and SPF will only arrange mortgages of Eur250,000 upwards.
Borrowers can choose repayment or interest-only deals, and you can
remortgage an existing property if you wish. Rates start at 3.5%.
To find out whether you qualify for a mortgage in Ireland, see Applying
for a mortgage.
Applying for a mortgage
It is advisable to arrange a mortgage in principle before committing
to a purchase. This will enable you to find out how much you can borrow,
so you don’t waste your time looking at properties beyond your
budget. Even if you haven’t found a property that you wish to
buy, our international division can help you to establish your affordability
and issue an approval in principle based on your current financial
situation.
You should never sign anything before taking legal advice or put down
a deposit before ensuring that it is refundable.
If you have already found a property to purchase, we will send you
a full application pack via email or in the post. If the property
is still under construction, we can keep your file open until you
tell us it is ready.
Should you require funds to put towards a deposit, or if you don’t
qualify for an overseas mortgage, we may be able to help raise finance
for your proposed property.
Contact SPF on 020 7877 4710 or email international@spf.co.uk
CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT
OF YOUR DEBT
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SAVILLS PLC - INTERNATIONAL DEPARTMENT
SPF is part of the Savills Group, the international property consultancy formed in 1855. The Savills plc International team is
based in London and is dedicated to providing a service to meet an individual's overseas property needs.
For more information about Savills plc - International click here.
