Can I use my relative's foreign home as security for a UK mortgage ?
Posted on 17 November 2015 by Andy
Hi there, We have a commercial loan on our 5 holiday flats that we bought for £245,000 8 years ago of which there is approx £85,000 outstanding. Whilst attempting to renegotiate our loan with a new lender they have had the property valued. It came in at £140,000 as they used a rental yield of 15%. This has meant we fall way short of proposed LTV and they have therefore withdrawn the offer. My question - Is it possible to use foreign relatives' property in France as security on the new loan to allow it to go through? The lender is Interbay.Many thanks in advance for your time, Andy
Hi Andy, I understand Interbay have withdrawn the offer due to the down valuation of the property- which is unfortunate. It will not be possible to use foreign relative’s property in France as security because the property is not within UK jurisdiction and also because you are not the legal owner.
However, I do I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and ask for Paul Newman, he will be able to look at your situation in greater detail and discuss possible alternatives. Alternatively we can call you at your convenience- please let me know.
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