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I live in the UK is it possible to transfer a mortgage to a bank based in a different country that doesn't operate in the UK, say Germany or United states for example?

  • Probably not, but may I enquire as to why you want to do this? – Timo Geusch Sep 22 '10 at 17:35
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    You definitely can, I don't understand why everyone thinks you can't. Two reasons : lower interest rates; you think a currency will lose value (us dollar anyone). – NimChimpsky Sep 23 '10 at 15:33
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Simple answer YES you can, there are loads here are some links : world first , Baydon Hill , IPF

Just googling "foreign currency mortgage", "international mortgage", or "overseas mortgage" gets you loads of starting points. I believe its an established and well used process, and they would be "classified" as a "normal" mortgage.

The process even has its own wiki page

Incidentally I considered doing it myself. I looked into it briefly, but the cost of fee's seemed to outweigh the possible future benefits of lower interest rates and currency fluctuations.

  • The links you have given are more from a resident in country buying property abroad. IE a resident of US buying a property in Dubai/UK etc. The question is being a resident in US and holding a US property would a foreign bank give you a mortgage loan. For a loan to be treated as Mortage in the resident country the normal rule apply that the financial institution be resident of the country. This is where the tax / legal provisions apply. A foreign institution can still lead, but they would not be treated as mortgage in resident country for the purpose of taxation and legal. – Dheer Sep 23 '10 at 14:37
  • I don't understand your point. It is a widely used practice, I imagine the links I listed highlight buying abroad, as that is the reason most people do it. "For a loan to be treated as Mortage in the resident country" well surely its not the resident country, it is the country the bank is registered in. Just to repeat, it is common practice to buy a house in your resident country with a mortgage from a bank registered in foreign county, and it is easy to do. I fail to see why you think it isn't. – NimChimpsky Sep 23 '10 at 15:25
  • So if I am in US and buy a property in US, the loan is from a Bank in UK that has no presence in US. Would I get a tax benefit similar to the one I get if I take a mortgage loan from a bank in US? – Dheer Sep 23 '10 at 15:41
  • I have no idea what the tax benefits in the US are ? What are they ? – NimChimpsky Sep 23 '10 at 15:50
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You definitely used to be able to (see this BBC article from 2006), and I would imagine that you still can, although I also imagine that it would be more difficult than it used to be, as with all mortgages.

EDIT: And here's an article from last year about Chinese banks targeting the UK mortgage market.

  • I think those are all examples of foreign banks which are operating in the UK. Also the loans suggested in those links are all denominated in sterling. – Ganesh Sittampalam Sep 24 '10 at 16:07

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