Mortgage News

A euro mortgage is 'subject to tighter controls' - 18/12/2007

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Consumers looking for an overseas mortgage in a foreign currency have been warned that the process can be extremely time-consuming, while the eligibility criteria can also be much tighter in Europe than back home.

Independent financial services group Blevin Franks notes that it is compulsory in many nations to open a bank account in that country when applying for a mortgage, with applicants usually having to prove their identity, address, earnings, assets and liabilities.

Matthew Weston, manager of overseas mortgages at the firm, said: "Many countries outside of the UK have enforced consumer protection which forces lending institutions to avoid reckless lending at all costs."

He added that it is rare to find banks on the continent that offer self-certification options and maximum loan options available in the UK, while banks must prove in court they have carried out full due diligence in the case of repossession.

Research published by Alliance & Leicester Mortgages in 2006 found that 68 per cent of brokers believed they would conduct more business involving overseas mortgages in the future.

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