Cash lump sum still needed for overseas mortgages

First-time buyers looking to invest in property outside of the UK will still need a cash lump sum to get an overseas mortgage approved, a property advisor has warned.

BuyAssociation said that it was “quite possible” for consumers to get a mortgage approved on a property abroad, a tactic which can help build up equity quickly.

However, Paul Collins, property editor for BuyAssociation, said that these forms of purchase arrangements can often make getting a mortgage more time consuming, particularly in emerging markets.

“And you will find in a lot of these markets that you won’t be able to get 100 per cent mortgages, so again there is still the issue that you will need some form of cash deposit to be able to actually do that, ” he explained.

A recent study published by UK National Savings & Investments found that 84 per cent of 18 to 30-year-olds believe buying property abroad is a more viable option than buying in Britain.

Tags: Mortgages, First-time, first time buyers, tactic, cash, overseas mortgages, investments, Subprime mortgage crisis