All Topics / Help Needed! / How to get overseas / UK bank mortgage on Australian property

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  • Profile photo of smithy789smithy789
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    @smithy789
    Join Date: 2007
    Post Count: 2
    September 2, 2009 - 8:51 am

    Hi Folks,

    In order to take advantage of the lower interest rates overseas, do you know whether there are UK or USA banks that will grant a mortgage over an Australian property? 

    I am a UK citizen, Australian permanent resident, currently residing in Australia, and am paid in AU$.  I have an investment property and residential property in Melbourne.

    Any help much appreciated…

    smithy789

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    September 2, 2009 - 9:06 am

    Even if you find a bank to fund your investments, you will need to consider the currency risk of UK Pound vs AUD esp if you will be earning  AUD and the dollar weakens once the effects of all the govt debt is realised.

    Profile photo of smithy789smithy789
    Member
    @smithy789
    Join Date: 2007
    Post Count: 2
    September 2, 2009 - 9:10 am

    Quite right – good thinking..  But that can be addressed by buying a forward contract on GBP to hedge against a drop in the AU$ – so any loss is protected against, and any gain, is retained!

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