Overseas mortgages proving more popular among UK home buyers

New research has found that a fifth of people trying to get on the UK housing ladder would consider leaving the country and moving abroad to fulfil their dream of owning a home.

While this does not mean that number would actually do so, the research from comparison website GoCompare is interesting as it suggests that people regard getting a mortgage for buying a property abroad as not being a problem.

Indeed, a quick bit of research backs this up. It would seem that increasing numbers are looking overseas for mortgages and it is likely that they might get a better deal.

In France, for example, the 20 year fixed rate now stands at 3 percent, an all-time low. According to French Private Finance, there has also been a loosening of bank criteria to include increased loan to value levels and mortgage products open to expats.

‘In the past ,French banks had quite a narrow definition of the term expat. This only really included your typical permanent expat and also those on contracts from their home country for a short term fixed duration,’ said the firm’s private client director, John Busby.

‘Now, many banks are willing to accept borrowers who simply work for a stock market, company listed on one of the main premium exchanges like the CAC 40, Nasdaq, and FTSE100. This will mean a greater number of non-residents will be able to access a larger number of mortgage products. Typical LTVs will be in the region of 70 to 80 percent,’ he explained.

But it seems that while France is just across the Channel and there is even the possibility of commuting, British buyers who would be willing to move abroad don’t have France at the top of their list. The GoCompare research found that 31 percent would move to the United States, 29 percent to Australia and 20 percent to New Zealand.