An introduction to international, offshore and foreign currency mortgages
What this guide addresses
International mortgages are most relevant to people who want to buy a property in a country in which they either do not live or are not a citizen.
In this situation, most lenders will not be equipped to help, so a borrower would have to open new accounts in unfamiliar territories and deal with new procedures. However, with an international mortgage you can avoid this situation.
The right international mortgage for you will depend on your individual needs. Find out more below.
We also have other guides including general mortgage advice, foreign currency mortgages and investment mortgages.
Foreign currency mortgage
A foreign currency mortgage enables you to borrow in the same currency as your salary. The main advantage of this is that it can help reduce foreign exchange rate risks.
However, if a foreign currency loan is taken against a UK property, the relative size of the loan compared to the value of the property can be adversely affected by exchange rate movements.
UK residential currency mortgage
If you or a member of your family want to buy a UK property to live in, then this mortgage could be ideal. The mortgage can be matched to your salary in euros, yen, US dollars, Hong Kong dollars or Swiss francs.
Investment and buy-to-let mortgages
These mortgages are necessary when buying property as an investment, buy-to-let or second home. Generally speaking you will need verification that the rental income will be at least 125% of the monthly interest payments.
Student moving to the UK
If you are a student moving to the UK you probably will have a low income and little or no credit history in the UK. This can make it difficult for you to get a mortgage.
With a Barclays International account, the overall financial position of you and your parents will be taken into account when considering your mortgage options.
See more information about our UK student mortgages.
Types of mortgage structure
Mortgages have a variety of repayment structures designed to match your needs.
Fixed rate mortgage
A fixed rate is usually applied for the first two to five years of the mortgage, though some Barclays International clients may be able to get a longer fixed rate period.
During the fixed term, the interest rate charged will remain the same. This enables you to budget ahead.
At the end of the fixed rate term the interest charged may increase, and we can work with you to prepare for this possibility.
Variable rate mortgages
Standard variable rate, discount and tracker mortgages are all types of variable rate mortgage.
Standard variable rate
The standard variable rate (SVR) is Barclays International's default mortgage when a client comes off their fixed term or deal period. It moves up and down, usually following the Bank of England base rate (or the base rate of the country concerned). There is no arrangement fee with an SVR from Barclays International.
Discount rate (subject to availability)
A discount rate usually applies for the first two to five years of a variable mortgage, and is the SVR but with a lower interest rate.
For example, if the SVR is calculated as the Bank of England base rate plus 5% then the discount rate might be the base rate plus 4.5%. After the discount period the client's mortgage would be placed on the SVR.
Repayment mortgage
This is where your monthly payments cover both the capital borrowed and the interest charged. It is calculated so that at the end of your mortgage term, the total amount you've borrowed, including interest, is paid in full (as long as you have made all of your payments in full and on time).
Interest-only mortgage
If you want to make lower monthly payments then an interest-only mortgage will enable you to do so. However, you will have to make separate plans to ensure that you are able to repay the capital at the end of the mortgage term.
Mix & Match mortgages
Mix & Match mortgages are created by Barclays International to enable you to combine the features of different repayment structures to create a mortgage that best meets your needs.
Survey and valuation services
Barclays International offers three types of survey and valuation:
- Barclays Valuation. This reports on the overall condition of the property focusing on essential repairs and structural movement.
- Barclays Survey and Valuation. This goes further and pays particular attention to major problems such as movement, dampness and decay.
- Barclays Building Survey. This is a detailed survey outlining the structural integrity, visible condition and state of repair.
Barclays International also includes advice on energy efficiency, property maintenance, security and fire safety in all its surveys and reports.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
If your loan is denominated in a currency other than sterling CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.
For more information or to apply
To apply or find out more information speak to a Barclays International Mortgage Adviser. We specialise in providing a range of residential/investment mortgages for property purchases in the UK, Jersey, Guernsey, Isle of Man and Gibraltar.
Call us on +44 (0)1624 684305†
Alternatively please contact your Barclays International Relationship Manager, if you have one.
Terms and conditions apply to all mortgage products. We strongly recommend that you obtain your own independent tax advice before proceeding with an offshore mortgage.
Barclays will require a first charge over the property.
Barclays is a responsible lender and when considering your application for borrowing, your financial circumstances will be appraised. Remember should you run into difficulties please contact us immediately.
In all forms of advertising and marketing material where repayments are quoted, we will show clearly a typical Annual Percentage Rate (APR). We will also clearly indicate in all lending-related advertising issued in Jersey that we abide by the Code of Practice for Consumer Lending.
You have sole responsibility for the management of your tax and legal affairs including making any applicable filings and payments and complying with any applicable laws and regulations. We have not and will not provide you with tax or legal advice and recommend that you obtain your own independent tax and legal advice tailored to your individual circumstances.
The products and services described on this page are provided by the following companies, which are part of Barclays: Barclays Bank PLC in England and Wales and Barclays Private Clients International Limited in the Isle of Man, Jersey and Guernsey. For further information on these companies and Barclays please read the Important Information.
