Offshore Mortgages

Coreco Commercial have many clients who are looking to purchase property abroad.

While many of these enquiries come from British citizens looking to invest in overseas property, for example  a holiday home, some enquiries are from people living overseas who want to buy in the UK.

What is an offshore mortgage?

An offshore mortgage is a mortgage designed for overseas clients and offshore workers, both UK expats and non-UK citizens, looking to purchase or remortgage property in the UK.

Who can get an offshore mortgage?

Typically, offshore mortgages are most suitable for those whose income is generated from outside of the UK, or are not a resident of the UK for tax purposes.

Offshore mortgages are also available for overseas clients purchasing residential property, which is to be used by themselves or their family as their base when travelling to the UK. Alternative options are also available for clients who’d like to purchase an investment property to let out.

What are the benefits of an offshore mortgage?

Off-shore mortgages can be very tax-effective for a certain category of borrower seeking to purchase property in the UK. However, due to recent changes in the law you should always ensure that you take personal tax advice. Generally speaking, people who can apply for offshore mortgages include UK resident non-domiciled individuals and non-UK residents.

Offshore mortgage rates

Offshore mortgage rates vary significantly because the product is so niche. It’s not a product your high street bank would necessarily have to offer so if you’re considering an offshore mortgage, it’s important to seek expert advice from an experienced broker such as ourselves.

How do I get an offshore mortgage?

Depending on your personal circumstance, there are a range of offshore mortgages available. Some clients may choose to purchase investment properties in their personal names while others may set up a Special Purpose Vehicle (SPV), often a limited company. Whichever way you wish to structure your offshore mortgage, be it through a limited company or offshore trust, in sterling or in another currency, Coreco Commercial advisers are able to assist.

We have developed close contacts with several of the main private banks who take a “blank sheet of paper” approach to underwriting. Every client is treated separately depending on their situation and thus, has a product designed specifically to their individual needs. This can result in more competitively priced products that are better than those available on the wider market.

Through “Back-to-Back” loans, it is possible to effectively borrow 100% of the mortgage amount so that money does not have to be brought into the UK. This can be achieved by depositing cash, shares or other assets with offshore banks.

Company loans can be arranged through various international jurisdictions, be it the Channel Islands, BVI or any other location that is required. Complex trust structures can also be catered for.

Offshore mortgages: Good to know

As offshore mortgages, and offshore tax planning generally, can be very complex independent tax advice is essential before you decide to proceed. Coreco advisers are experienced offshore mortgage advisers but we are not tax advisers ourselves. If you would like to speak to an expert, we can refer you on to highly experienced tax experts if required. Get in touch for more information.

Ready to speak to us about your offshore mortgage? Contact our friendly team of advisers on 020 7220 5100, or fill out our online contact form and we’ll be in touch shortly.