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Old 06.12.2016, 21:52
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expat re-mortgage for property abroad

Dear all,

I have been reading this forum and found some hints, but most info about this topic are quite dated....
I think this is the closest in terms of topics covered:
Swiss mortgage/remortgage on house in UK?

Basically we have a property in UK, fully paid for, but we would like to remortgage it. HSBC - previous lender - told us that they cannot offer a buy to let option if we don't own the house where we live now (in Switzerland).
Then I found an independent broker:
http://www.cherryfinance.co.uk/
they are willing to proceed with our case after a (fair) initial payment.Then I should pay more on the condition that I like their offer.
I was about to sign it when I thought.... that I only asked them, didn't quite shop around...
reason being that it is not that easy to find someone willing to offer you an investigation for remortgage with these circumstances.

So I thought to ask in here: as anyone been in a similar situation? - probably yes.
Could you recommend anyone?

Thanks a lot!
Mik
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  #2  
Old 06.12.2016, 22:27
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Re: expat re-mortgage for property abroad

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Dear all,

I have been reading this forum and found some hints, but most info about this topic are quite dated....
I think this is the closest in terms of topics covered:
Swiss mortgage/remortgage on house in UK?

Basically we have a property in UK, fully paid for, but we would like to remortgage it. HSBC - previous lender - told us that they cannot offer a buy to let option if we don't own the house where we live now (in Switzerland).
Then I found an independent broker:
http://www.cherryfinance.co.uk/
they are willing to proceed with our case after a (fair) initial payment.Then I should pay more on the condition that I like their offer.
I was about to sign it when I thought.... that I only asked them, didn't quite shop around...
reason being that it is not that easy to find someone willing to offer you an investigation for remortgage with these circumstances.

So I thought to ask in here: as anyone been in a similar situation? - probably yes.
Could you recommend anyone?

Thanks a lot!
Mik
HSBC Expat in Jersey will offer UK BTL mortgages for Premier clients. I generally find them incompetent but the will do what you want.
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Old 07.12.2016, 13:39
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Re: expat re-mortgage for property abroad

Thank you!
I didn't know HSBC-Expat exists... they deserve a call :-D

Funny thing is... try to guess which bank told me I could not remortgage my home in UK since I left, even if I have been with them for years?
Exactly, HSBC....
could have they mentioned: "our cousin HSBC-Expat could do it"?
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Old 16.12.2016, 13:11
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Re: expat re-mortgage for property abroad

Just a "closing" of the story...
(not an happy ending unfortunately).

After an initial contact with HSBC Expat I was finally called back by the mortgage team.
To make the story short:
. In order to become eligible for a mortgage with them you have to have an HSBC EXPAT account
. to have that account you have to hold 60.000 GBP in their account
. every month you keep there less than 60 K, you pay 35 GBP as penalty
. that account must be opened for the whole duration of the mortgage.

Essentially in order to borrow money you have to have money.
Thanks, but no thanks.

I'll keep searching...
Take care guys!
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Old 16.12.2016, 13:41
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Re: expat re-mortgage for property abroad

I don't really understand your intention from all of this.

If the house is fully paid, surely no need to remortgage... if your aim is to release equity, maybe you could tell us for what purpose as it might be easier and more convenient to just sell and do what you want to do with the money or simply get a secured loan with the house as collateral.
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Old 16.12.2016, 13:51
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Re: expat re-mortgage for property abroad

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I don't really understand your intention from all of this.

If the house is fully paid, surely no need to remortgage... if your aim is to release equity, maybe you could tell us for what purpose as it might be easier and more convenient to just sell and do what you want to do with the money or simply get a secured loan with the house as collateral.
Wrong assumptions I am afraid.
The remortgage is needed to get some money "out of it" for another investment and the point is to AVOID to sell it, which would be not at all more convenient.
But even getting a "secured loan" as you seem to suggest, is not a viable solution as I don't live anymore in UK.
If you can suggest something else please go ahead.

Thanks anyway!
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Old 16.12.2016, 14:23
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Re: expat re-mortgage for property abroad

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Wrong assumptions I am afraid.
The remortgage is needed to get some money "out of it" for another investment and the point is to AVOID to sell it, which would be not at all more convenient.
But even getting a "secured loan" as you seem to suggest, is not a viable solution as I don't live anymore in UK.
If you can suggest something else please go ahead.

Thanks anyway!
Putting expat BTL mortgages in google yields many options. However if your not going to let out the property thats fraud.
Expat remortgages provides some other names.
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Old 16.12.2016, 14:27
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Re: expat re-mortgage for property abroad

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However if your not going to let out the property thats fraud.
Sure, but that's already the case. Thanks.
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Old 16.12.2016, 14:36
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Re: expat re-mortgage for property abroad

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Putting expat BTL mortgages in google....
You know (it's fair that you laugh about this), but some times I really struggle to make a proper search in google, maybe because my English is not so good.
So your sentence:
"expat BTL mortgages" produced many more results that what I was able to get on my own (especially I think the BTL was the tricky point).
Thanks a lot for that!
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Old 17.12.2016, 00:23
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Re: expat re-mortgage for property abroad

this is getting tougher.......I used to do it with LloydsTSB international mortgage service in Hong Kong but they have now closed this service.

Unless you have a $million+ portfolio, I don't think you'll get much / any interest anywhere in the expat banks, Lloyds was unique in the past as they did it for 'normal' houses
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Old 15.06.2017, 21:18
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Re: expat re-mortgage for property abroad

Glad I found this thread, if not the unhappy ending.

We are in a similar situation. Living in switzerland with a mortgage on an existing property in Germany that is ripe for an equity take-out. German banks are prohibited by EU directives as we don't have our tax residence in Germany and do not earn in Euro...

Swiss banks just don't seem to want to finance properties outside of Switzerland.

It seems insane, I want to pay someone (not a lot of) money and cannot find any takers.

Would be grateful if anyone has any bright ideas other than contacts to people who take knee-cap collateral.
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Old 15.06.2017, 21:20
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Re: expat re-mortgage for property abroad

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German banks are prohibited by EU directives as we don't have our tax residence in Germany and do not earn in Euro...
.
Are they? I financed a property in Berlin 2 years ago with a Swiss salary with a German bank.
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Old 15.06.2017, 21:44
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Re: expat re-mortgage for property abroad

Apparently this is the result of a new EU directive introduced roughly March 2016. Really restrictive, so much for the international marketplace.
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Old 15.06.2017, 21:46
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Re: expat re-mortgage for property abroad

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Glad I found this thread, if not the unhappy ending.

We are in a similar situation. Living in switzerland with a mortgage on an existing property in Germany that is ripe for an equity take-out. German banks are prohibited by EU directives as we don't have our tax residence in Germany and do not earn in Euro...

Swiss banks just don't seem to want to finance properties outside of Switzerland.

It seems insane, I want to pay someone (not a lot of) money and cannot find any takers.

Would be grateful if anyone has any bright ideas other than contacts to people who take knee-cap collateral.

There are lots of threads on the topic on the forum. Banks in country A can not repossess a property in country B . So there is nothing really securing the mortgage.

You have to find a bank in the same country.

Or some other option, like some shady expat banks in Jersey.
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Old 15.06.2017, 21:49
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Re: expat re-mortgage for property abroad

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Or some other option, like some shady expat banks in Jersey.
They only lend on UK property.
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Old 15.06.2017, 21:49
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Re: expat re-mortgage for property abroad

But that's the whole point, I am begging banks in Germany to finance a property in Germany. No dice, because of this new(ish) regulation. It's not like the Swiss franc is a wildly-fluctuating currency vs. the Euro. I guess once the UK leaves the EU they won't have their hands bound by such directives so maybe I will just have to wait.
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Old 15.06.2017, 21:52
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Re: expat re-mortgage for property abroad

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But that's the whole point, I am begging banks in Germany to finance a property in Germany. No dice, because of this new(ish) regulation. It's not like the Swiss franc is a wildly-fluctuating currency vs. the Euro. I guess once the UK leaves the EU they won't have their hands bound by such directives so maybe I will just have to wait.
It's a very high risk loan for the bank, sub prime on steroids. It's the amount of capital they need to lend, I can't see them wanting to lend more than 35% of valuation at SVR, very low rates just won't happen.
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Old 15.06.2017, 21:58
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Re: expat re-mortgage for property abroad

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But that's the whole point, I am begging banks in Germany to finance a property in Germany. No dice, because of this new(ish) regulation. It's not like the Swiss franc is a wildly-fluctuating currency vs. the Euro. I guess once the UK leaves the EU they won't have their hands bound by such directives so maybe I will just have to wait.
When I was looking for a mortgage in Switzerland, I spoke to a broker who told me he would get offers from banks and insurance companies. I'm not 100% sure this is really what he meant. His English wasn't great, neither was his French.

Maybe in Germany you could get some entity other than banks that will give mortgages... You should try to find a broker in DE.
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Old 15.06.2017, 22:06
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Re: expat re-mortgage for property abroad

I don't see how it is a super high-risk loan for a German bank. They have access to the property and the higher swiss salaries mean we are in a better position to survive through interest rate changes or other incidents.

We probably should try a mortgage broker in Germany. I cannot imagine that they would leave a gaping hole in the EU regulation such as allowing insurance companies to lend where banks may not, but, it's the only idea on the table at the moment.
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Old 15.06.2017, 22:52
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Re: expat re-mortgage for property abroad

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I don't see how it is a super high-risk loan for a German bank. They have access to the property and the higher swiss salaries mean we are in a better position to survive through interest rate changes or other incidents.

We probably should try a mortgage broker in Germany. I cannot imagine that they would leave a gaping hole in the EU regulation such as allowing insurance companies to lend where banks may not, but, it's the only idea on the table at the moment.
BTL when owner lives in a foreign country is essentially a non status business bridging loan. They can't take control of the property as it's let out.... Germany has very strong laws to protect the Tennant.
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