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Old 05.06.2012, 01:38
kyo kyo is offline
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Remote mortgages

Hi,

Not knowing much about finance, and not knowing who else to ask I would appreciate some advice.

Is it possible to live in Switzerland, and take out a mortgage to buy a property in England. I would presume that many UK mortgages from high street lenders would require that you are based in England but there must be a specialist product tailored for expats.

Or would you take out a mortgage in Switzerland for a property in England, is that possible and sensible ?

I am sure that a number of people here are in this situation, and I would love to know how you manage this situation.

Thanks
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Old 05.06.2012, 01:52
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Re: Remote mortgages

Some bedtime reading for you!

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Old 05.06.2012, 01:53
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Re: Remote mortgages

It's very difficult. That's the first thing to know, but possibly a more important thing is, unless you are really on the ball financially and know how to play the market and/or hedge currencies, don't even think of buying an expensive asset valued in GBP with a loan denominated in CHF. Fluctuations in exchange rates could see your debt double, or worse. (Or not. But do you really want to take that risk?) In any case, you're unlikely to find anyone happy to lend at reasonable rates in Switzerland on UK property.

Same goes for UK lenders if you're an absentee borrower -- UK banks generally do not like lending to overseas borrowers. Some will, but require large deposits (35% or more) and apply steep interest rates. I've never really understood it (they still have the mortgage over your house as collateral), but I guess lenders just want to avoid the hassle of defaulters (it would be all too easy if you weren't living in the UK).

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Old 05.06.2012, 11:05
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Re: Remote mortgages

Quote:
.....don't even think of buying an expensive asset valued in GBP with a loan denominated in CHF. Fluctuations in exchange rates could see your debt double, or worse......
It's had a lot of coverage
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Old 05.06.2012, 11:08
kyo kyo is offline
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Re: Remote mortgages

Thanks everyone.

Maybe I should give up the idea of buying in England and buy in Switzerland. This now makes me stop and wonder about the required 20% deposit in Switzerland in order to obtain a Swiss mortgage, which is obviously high due to the higher apartment prices in Switzerland. Hmmmm, not easy at all, but i'd hate to rent for 20 more years, and not get anything back from it.

Last edited by kyo; 05.06.2012 at 11:46.
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Old 05.06.2012, 14:10
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Re: Remote mortgages

Sure, why not?

Oh ... here's why not ...
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