Guest Lou76 Posted October 27, 2006 Share Posted October 27, 2006 Bit of a strange one this, but just wondering if the thought had occurred to anyone else. With interest rates in Australia being as they are, my husband suggested that we might be able to raise money in the UK to cover the small mortgage we will need in Oz, either through a homeowner loan (now there are all sorts of implications such as selling this house that such a loan would be secured on etc etc...) or even if there are any companies in the UK that do this sort of mortgage. My guess is that you'd have to be a UK resident still to get a foreign mortgage via a UK company. Just wondered if anyone has any thoughts? Link to comment Share on other sites More sharing options...
Guest wardy Posted October 27, 2006 Share Posted October 27, 2006 The thought had crossed our minds to. I suspect its not possible too good an idea to be achieved I would have thought. Hope its pssible though with the interest rates as they are. Kaye Link to comment Share on other sites More sharing options...
Guest Koala Posted October 27, 2006 Share Posted October 27, 2006 I think if it were possible, (and I doubt it very much, but then life is full of surprises :lol:) it would be common knowledge, and every man and his dog would be doing it. If you have no assets in UK, how would the lenders get their money back if you reneged on the repayments? If you own a home in UK you would/will get slapped with Gains tax when you buy one here. Good idea though :lol: Koala Link to comment Share on other sites More sharing options...
Guest choobs Posted October 28, 2006 Share Posted October 28, 2006 I think if it were possible, (and I doubt it very much, but then life is full of surprises :lol:) it would be common knowledge, and every man and his dog would be doing it. If you have no assets in UK, how would the lenders get their money back if you reneged on the repayments? If you own a home in UK you would/will get slapped with Gains tax when you buy one here. Good idea though :lol: Koala Yeah - my initial thought was "tax minefield". Worth asking around about it, I guess, but I wouldn't get my hopes raised too high. Choobs Link to comment Share on other sites More sharing options...
Guest Lou76 Posted October 28, 2006 Share Posted October 28, 2006 You're all echoing exactly what we thought - but it was worth asking! Cheers all Link to comment Share on other sites More sharing options...
Guest Brendan Posted October 30, 2006 Share Posted October 30, 2006 THis is difficult to do as: a) The security for the loan raised in the uK will be in a foreign country and therefore no regular mortgage companies will lokk to lend b) There is a huge rate of exchange rate fluctuation. You are best of borrowing in the currency that yuo are earning. Therefore if you're earning Aussie dollars best go for an Aussie loan. Link to comment Share on other sites More sharing options...
Guest V&G Posted November 7, 2006 Share Posted November 7, 2006 We were also thinking of this. We've sold one of our properties here but are keeping the other & leasing it out (small business with residential) - we were considering taking an extra 75k against the equity in the house to put with savings towards a new place in Perth - hopefully we would then have a very small mortgage when we get out there. Sounds like this might be a no-no. Link to comment Share on other sites More sharing options...
Guest dawn courage Posted January 22, 2007 Share Posted January 22, 2007 was a broker in uk upto May 2006, now have own broking business in australia, comments are this. Release equity in Uk home before you go to oz, rent it out to cover mortgage. use equity to purchase in oz. Good idea too if you can get a good xchange rate. or forget the interest rate, you can get some deals now at under 7%, and get a homeloan in oz. You would probably be ok for the first home buyers grant and concessions too. always use a broker, they will find you the best deal. Look for one that has 25 plus lenders on their panel, and who charges no fees for their advice. If you would like me to help you, I am an expert, having done my own home loan just 2 months after arriving . email me on dawn.courage@mortgagechoice.com.au Cheers Dawn Link to comment Share on other sites More sharing options...
Guest gail.crease Posted January 22, 2007 Share Posted January 22, 2007 We're doing the same thing. We're going to keep the house here, take out $50 equity then tell the mortgage company we're going abroad for a while and they said they'll charge us £500 to allow us to rent our house out on their mortgage. Regarding capital gains tax, if you sell your house in a few years time the profit in which tax is calculated on is the sales price less the value the house was when you first started renting less any allowances. It would be wise to get an estate agent to value it and put it in writing before you go. So unless the price shoots up substantially in the next few years, your tax bill will be minimal. Of course if you never sell it, you'll never pay any tax. Good luck Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.