The benefits of Offshore Mortgages

For a call back from one of our advisors and to proceed with a decision in principle please fill out our offshore mortgage enquiry form.

Why choose an offshore mortgage?

Generally, borrowing in the same currency as the income you will receive from the asset is a good idea. This will remove the potential impact of currency fluctuations, and negate currency conversion costs.

Of course another advantage of choosing a mortgage provided by an offshore arm of a UK bank is that you are dealing with an organisation you know and can trust, and can be confident that all the literature will be in a language you can understand. 

Good News for Investors

There are also some other features of the offshore mortgage that set it apart from the competition.  Our partners in this area are keen to make life easy for overseas property investors.  With that in mind, in most cases there is no charge for early repayments (except for fixed rate offers) and no special fees or terms for clients looking for ‘buy to let’ properties.  There are also no formal requirements to purchase extra life cover when you take out your mortgage (like there may be when borrowing from a foreign bank). Just a few of the ways our offshore mortgage partner will save you time and money.

Flexibility

An offshore mortgage provides flexibility.  Lending is available in 11 different countries in a choice of 10 major currencies.  The offshore mortgage is truly international in its nature and is open to customers of all nationalities.  The service will also provide the opportunity to purchase property through an offshore company, which may be considered advantageous for prudent tax planning.  However, while this service may offer greater tax efficiency it is a complex area and we of course advise taking specialist tax advice before making a decision. For more tax advantages of offshore lending or investment through an offshore company please click here.

Simple & Straightforward

The process is simple and straightforward and our carefully selected partner in this area has over 20 years experience in arranging mortgages internationally.  There is a dedicated specialist centre set up to help you with your application and with the ‘advance credit line’ a no obligation, fee free mortgage quote will allow you to look for your new property with a realistic budget already agreed.  Yet another way in which the offshore mortgage helps to take the worry out of buying abroad.

Currencies Available

With an offshore mortgage from our carefully selected provider you are able to borrow money against your overseas property (or even a residential property in the UK that is not your main home) in a choice of up to 10 major currencies:

Switching Currencies

Generally speaking it is wise to match the currency of the loan to the currency of the income you will receive from the property.  In this case a mortgage which remains in one currency is ideal.  However, it could well be more appropriate and cost efficient for a borrower to seek a currency switching option whereby he or she has the facility to finance in one currency today and retain an option to convert to another currency at a later date.

For example, a borrower may choose to take out a mortgage in Sterling today and later switch to Canadian Dollars should movements in exchange rates present an opportunity to minimise the interest cost of the mortgage or should his or her principle source of income change.

The offshore mortgage we recommend will allow two free currency switches per calendar year and a further two thereafter at a cost of only US$150 each.  The choice depends largely upon personal circumstances and future plans, though the ability to switch currencies during the life of the loan could prove valuable at a later date.

Care needs to be exercised when switching currencies as significant movements in exchange rates can occur very quickly and could of course change for better or for worse. For this reason we advise that you utilise the Managed Currency Mortgage Service of our carefully selected and experienced partner who will advise you on when currency switching should be carried out.

Read more information on managed currency mortgages.

For a call back from one of our advisors and to proceed with a decision in principle please complete our quick offshore mortgage enquiry form.

To speak with a member of the Assetz Finance team please call 0845 400 8000