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If you're thinking about remortgaging an overseas property, you may already know just how much there is to consider before you send off your application. As with standard mortgages, there are a whole host of factors to mull over relating to both the product itself and the lender you choose before you bite the bullet and apply. However, the fact that the property in question is located abroad brings up additional things to be aware of, including language and currency issues. With remortgaging, you are taking out a second mortgage on an overseas property that you already own. This is done with the purpose of unlocking the value of the home to free up cash for major purchases or other financial reasons. When looking into potential banks to offer you this remortgage, you will need to think about whether they provide products for your property's country, as well as whether you can choose from different currencies to match either the local currency or your main income. You may also be thinking about potentially switching mortgage currencies partway through the term - if so, you will have to check that your bank of choice lets you do this. The success of switching currencies for international mortgages varies depending on exchange rates, so you will need to weigh up this decision very carefully beforehand. Another thing to bear in mind is whether the bank will offer mortgages for your specific property - some lenders might not do so if the home will actually be your main residence, as they may only offer remortgages for buy-to-let, holiday or investment properties. The amount that the bank is willing to lend, as well as the maximum repayment term and any associated age limits, should also be considered. As with normal mortgages, fees and penalties may be charged for various aspects of the remortgage - whether they are for early repayments, valuations, insurance or other factors - so this needs to be researched if you want to keep a tight rein on your spending. For those who do not yet have a good grasp of the local language or regulations, a bank that offers access to experienced tax and legal professionals well-versed in local laws could be a boon. Don't forget that professional advice can also be essential before you select a bank and remortgage product, so do seek this type of expertise if you're not sure about any aspect of remortgaging an overseas property. While remortgaging for whatever reason - be it to fund renovation or another property purchase, or even to limit inheritance tax liability or cut existing debts - can be beneficial, it is important to bear in mind that taking out a second mortgage commits you to paying back a vast sum of money over a potentially long period of time. As such, remortgaging an overseas property is a massive step to take and requires careful research before you fire off an application to the bank you choose. Don't forget that the success of your application can depend on various factors, including your credit history, current financial circumstances and even the state of the local and global economy, so bear this in mind when you talk to your international bank about taking out a second mortgage abroad. If you need an international bank to help you remortgage an overseas property, Lloyds TSB Offshore has a wide range of international mortgages and international accounts designed for those who work or live abroad.
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