Features of Offshore Property Mortgages
Written by Offshore Property on 2009/01/06 – 9:35 AM
Since an offshore mortgage is mostly like a normal mortgage in your home country, some U.K. banks for example now offer mortgages for offshore properties too. Each offshore jurisdiction has its own regulations and taxation, so be aware that there might be some things that you should pay attention too:
- Most foreign mortgage companies do not allow mortgages based on more than 70% of the property value
- Taxation levels sometimes vary very strong. Advice from a professional is a must on this subject.
- Watch foreign exchange rates since since they are somtimes subject to high volatility and could influence the actual cost to you. Unless you are going to be earning rental income in the local currency make sure that the mortgage is based in the currency you currently earn.
- It is vital not to sign any contract or agreement that you do not understand. Consult a local solicitor to translate it, or opt for a UK mortgage. A mortgage agreement written in a foreign language you do not speak may well hide important information.
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