HOW CAN YOU FINANCE YOUR NEW INVESTMENT
Our focus is to find the best solutions for UK nationals and expatriates whose circumstances are slightly different because they live and work overseas. Lifestyle Consultants help our clients to not only invest but also obtain finance in many jurisdictions around the world. The details below include various forms of property finance to consider:
A typical way for international property buyers to finance their investment is to secure a loan against it, known as a mortgage. There are, however, a few types of mortgages clients can consider, and each has its own advantages and disadvantages. Mortgages are typically categorised in two main types – interest only or capital and repayment:
An interest-only mortgage is a loan secured against a property where the repayments simply service the debt. If you choose the interest-only mortgage, you are only repaying the loan’s interest. This may be for the initial years of the mortgage, or indeed for the entire duration of the loan.
The advantage of an interest-only mortgage is that it offers lower monthly payments as you are only covering the interest. However, after the interest-only term expires, the debt still needs to be repaid in full. Interest-only mortgages give you an option to pay it off at the end of the term by a lump sum. This may be from the sale of the asset, or from wealth accumulated elsewhere.