Q & A - Financial North®

Why Financial North®?

We do have the experience and are transparent, with over 20 years of international experience on international property finance.

What do we do?

We are international mortgage and finance experts.

Our aim is to provide you with competitive mortgage or finance offers, whenever it is possible, so you can select the more suitable to your requirements.

The management and/or processing of a mortgage, loan or credit application by Financial North does not imply or entail its approval. Financial North does not approve or grant loans; its activity is to only introduce or promote, with prior authorisation by the user, to the different financial institutions with which it collaborates. If the loan is approved, these financial institutions shall issue a binding offer, in the name of the clients, signed and stamped by the lender.

How much can you afford?

We offer a free “Decision in Principle” assessment. It is a good idea to have your borrowing capacity defined before you search for your property abroad. Then you can focus on the property you can buy based on your current situation. Through our collaboration with local and international banks, we shall assist you in finding the most suitable finance adapted to your current financial circumstances and market conditions.


What are the additional costs you should take into account when buying a property abroad?

It depends on the tax regulation of the country where you are buying the property. You should also account for local and national taxes, notary fees, lawyer, property appraisal, title deeds, etc. You should estimate a cost from 10 up to 15% in addition to the acquisition price.

 

What are the fees?

We would discuss with you your case once we have received your completed decision in principle form, as then we would be in a position to understand your application and agree our fees in advance.


How is the application progressing?

We shall keep you informed, whenever is possible, with all relevant progress of the application. We try to understand your needs and provide you the options available in the market. Whenever it is possible, we will provide you with different options so you can decide which one is more convenient for you.


Should you get legal advice?

We strongly suggest that any prospective purchasers seek independent legal advice, not related to the estate agent or seller to avoid any potential conflict of interest, before signing any contracts and handing over any money. We can suggest different law firms specialised in local land and property law.


Should you get tax advice?

Yes, your property will raise local tax liabilities, and normally this could vary in different locations within a country. Your lawyer should inform you of the taxes arising following the purchase and the annual taxes.


Should you use a foreign exchange broker?

The quick answer is yes, it is likely they would offer you better rates than your High Street bank. Happy to introduce you on your request.


What is the minimum deposit requirement to acquire a property abroad?

Lenders abroad normally require that you have at least 40% of the purchase price, which is 10% completion costs plus 30 % deposit. If you have positive equity at your property in your home country, we may be able to assist you to raise your deposit requirements.


How long does it takes to complete a mortgage?

If you have a completion dateline, always allow yourself with enough time to get a final approval from the lender. Mortgage application process can vary significantly from one country to another as well as mortgage lenders. Besides, it is also important that you provide all requested documentation at the appropriate time and manner.


In the event I have adverse credit, would my application be considered?

The simple answer is no. International lenders would expect that you have an excellent credit rating.

We suggest that in case of a doubt, you check in advance your credit rate at Experian or Equifax. 


Are international buy to let mortgages available?

No. International lenders shall expect that you can afford with your mortgage commitment with your own income.


Do lenders finance land for self-construction?

Land is not financed. If you would like to build your own property you should own the land outright and have all planning permission in place in order to be considered by a lender.