Can I raise capital on my UK property to buy abroad?

Posted on 5 February 2008

I am a British citizen currently (and indefinitely) resident in Germany. I have no British income, apart from rent on my London property. I would like to buy a property in Germany, but I need a deposit of approx £25,000. Could I take out a new mortgage against my London property to provide the necessary deposit? My current mortgage lenders (Nationwide) say no!

Helen

Dear Helen,

For the rent to be the income from which the mortgage is paid, you need a Buy-to-let mortgage. Nationwide do not do these. However other lenders do. In addition to this, many lenders can't lend to people permanently resident overseas, but the good news is that there are some that will do this and a whole of market broker will be able to find the right one for your needs.

I would also use a broker in your situation, as they will help you deal with sending the right forms to you and liaising with the lender.

Charcol no longer charges a fee for its advice so if you call 0800 358 55 60 an advisor will sort out some quotes and do all the legwork for you at no extra cost.

Best of luck.

Category: Buying abroad

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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