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 0845 034 2199 an adviser will sort out some quotes and do all the legwork for you at no extra cost.

Best of luck.

Categories: Buying abroad

 

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