Expat
Village is edited and published by Iain Williams in Caracas, Venezuela.
A Daily Telegraph article by Melanie Wright at www.telegraph.co.uk
Buying property in the UK while you are living
overseas can be difficult, as expatriates can find themselves up
against stern restrictions and expensive mortgage rates.
However
there are several banks and building societies that offer a range of
deals to expatriates who want to get on the property ladder in the UK.
Derbyshire Building Society, for example, announced earlier this year
that it has developed a new range of mortgages designed specifically
for UK and EU nationals living abroad.
The range
includes a buy-to-let deal, fixed at 5.35 per cent until August 31,
2009, and a flexible tracker mortgage, at five per cent for two years.
The
buy-to-let deal allows overpayments of up to 10 per cent a year without
penalty. At the end of the three-year term, the interest rate tracks
the Bank of England base rate, currently 4.75 per cent, plus a further
one per cent for the remainder of the mortgage. The mortgage is
available for up to 10 properties, or a maximum amount of £1.5 million
per applicant.
The flexible mortgage is designed
for those who still have family living in their UK property. The
mortgage tracks the base rate, plus a further 0.25 per cent until
August 31, 2008, making the current payable rate 5 per cent. From Sept
1, 2008, the rate continues to track the base rate, but plus another
one per cent.
Fiona Passey, director of offshore
banking said: "Our entry into the expatriate mortgage market
demonstrates our broader commitment to meeting the financial needs of
British expatriates who now live and work abroad."
The
application fee for both of these loans is £595. Products are fully
portable and available for properties in England and Wales. To be
eligible for a mortgage, the sole or first applicant must hold a
current UK passport and be between 25 and 75 years old. If it is a
joint application, the second applicant must hold a current UK or EU
passport.
If you don't have the time or resources
to find the right mortgage deal, you could use a UK-regulated broker.
Offshoreonline.ORG, for example, has a panel of mortgage lenders and
can offer a fast track mortgage application service to expatriates who
need to act quickly.
Tim Harvey, managing director
of Offshoreonline, said: "As specialist expatriate advisers we can use
our knowledge and choose from a range of products. For those who are on
the mortgage ladder already, the message is simple – check your rate to
see if re-mortgaging can save costs. Many fixed rate loans will have
unwound by now and, if no action has been taken by the borrower, he may
well be on the lender's standard variable rate, which is usually one of
the highest rates charged."
As property prices in
the UK have soared recently, remortgaging can have other advantages for
expatriates, as equity can be released.
Expat
Village is edited and published by Iain Williams in Caracas, Venezuela.
