Borrowing money is something that most people do at some point during their lifetime. Whether it’s taking out a credit card or pay day loans in the UK, there are so many different options available to you. However, if you’re thinking about moving abroad or borrowing money from a different country, there are some things that you need to be aware of. So, if you want to know more about foreign lending, keep reading and discover all you need to know.
Mortgages May Be Different
If you’re thinking of getting a mortgage anywhere outside of the United States, then you shouldn’t expect to have one for more than twenty years. It’s only really the US that offers anything more than this, so don’t expect to find super long mortgages elsewhere. You’ll also notice that obtaining a fixed rate mortgage that lasts for the entire term of it isn’t common in other countries at all. For example, in France, variable rate financing is much more common as it allows your repayments to be inline with the current economy.
It’s a good idea to make sure that you’re pre-approved by a bank in your chosen country before you start looking at houses and jumping onto the property ladder. So, make sure you fully understand the mortgage terms that your chosen country can offer you before agreeing to anything, and always check that you’re eligible for one in the first place!
Eligibility Will Vary
You may not be able to get financing everywhere, so you need to check your eligibility for each different place. For instance, if you’re a citizen of a country, you should find hat you can apply for financing. However, other places will require you to have been a citizen for a certain amount of time or won’t lend to foreign nationals. Most countries will require you to be earning an income as well, which is pretty standard wherever you apply for a loan. So, when it comes to criteria and funding, make sure you fully understand each place’s rules and you should have much better chances of being approved.
Interest rates will vary wherever you go, so don’t be surprised if they’re a lot higher than you’re used to. Europe is said to have some of the lowest interest rates because they have negative central bank rates. This means that if you borrow money or take out a mortgage, you’ll pay back much less than if you were taking it out in the US. Some interest rates can be as low as 2%, so try checking out what interest rates different countries can offer you. You’ll be shocked at how low some of them are!
Credit Cards Count No Matter What
Some countries count a credit card as a debt value, even if you haven’t spent a single penny on it. This means that you may find it hard to qualify for foreign lending if you have a credit card or two with some spending on. You may find that you have to close your credit cards completely if you want to access funding or a mortgage. Once you have the mortgage or finance, you should have no issues getting a card set back up. So, make sure you check out what your chosen lender country’s rules are on credit cards beforehand and you’ll save yourself a lot of hassle.
Foreign lending is becoming more common as more investors look into the global markets. However, more and more members of the general public are looking into foreign lending too, as they make moves across the pond or want to purchase holiday homes. Whatever type of finance product you’re thinking of applying for, make sure you understand the terms and conditions of that specific country, and you’ll should be able to see a higher rate of approval success.