Hi Jay
John is right, it really does depend on the country you are wanting to buy property in. Different countries will have different attitudes.
I can only talk on the criteria for applying for mortgage finance from French banks.
Some of the French banks do UK credit checks, but with all of them, their main concern is that a person keeps within the income vs expenditure criteria - only one third of monthly income to service the monthly cost of any existing borrowings and financial commitments, and of course this has to include the monthly cost of the French mortgage as well.
To check this, they require the latest 3 months bank statements and the latest statements of any loans (mortgage, personal/student loans, credit cards, etc). Everything (income coming in and expenditure going out) is cross checked and referenced.
Legal costs (Notaire fees) for a new property assume about 5% of the purchase price, but for an older existing property the costs will be aprox 8%.
Some banks do have minimum lending limits, which on a mortgage of £25,000 (35,894 Euros on todays exchange rate), will reduce your choice of banks.
Carole Bayliss
mortgagefrance
|