Guest itskaren Posted June 26, 2008 Share Posted June 26, 2008 HI, just a general question! We have a house in the UK with no mortgage and are renting it out for £800 per month. We are in a rented house in Melbourne. As the interest rate is lower in the UK than Oz would it be possible to get a mortgage on the UK house to buy a place in Melbourne? Are there any benefits? I will get some professional advice from someone (!) but was just wondering if anyone else has done this? thanks Karen Link to comment Share on other sites More sharing options...
KIRK AND CO Posted June 26, 2008 Share Posted June 26, 2008 Good question Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 26, 2008 Share Posted June 26, 2008 HI, just a general question! We have a house in the UK with no mortgage and are renting it out for £800 per month. We are in a rented house in Melbourne. As the interest rate is lower in the UK than Oz would it be possible to get a mortgage on the UK house to buy a place in Melbourne? Are there any benefits? I will get some professional advice from someone (!) but was just wondering if anyone else has done this? thanks Karen That's exactly what I did in 2006, got a mortgage on my UK house and then bought an (investment) apartment in Oz. I was living in the UK at the time. The interest rate in UK is lower than Oz but the exchange is not in your favour (it was in 2006 when I did it 2.50:1). I am trying to sell my UK house at the moment at which time I will settle my mortgage. I think you may stuggle to arrange a mortgage remotely from the UK plus the lending criteria has tightened up a huge amount this year. 2 year fixed rate deals in the UK are now at 7% which is the highest since early 1997. Personally I think at the current time you would be opening yourself up to too much risk (exchange/interest) in getting a mortgage on your UK property plus you would be under a lot of stress if you couldn't meet the mortgage repayments if your tenant defaulted etc. Interest rates in the UK are forecasted to increase from now onwards and the rates in Oz are forecasted to reduce next year after on more rise in Aug. Link to comment Share on other sites More sharing options...
Guest itskaren Posted June 26, 2008 Share Posted June 26, 2008 Thanks for that. Food for thought! Karen Link to comment Share on other sites More sharing options...
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