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Who
can take out a British Mortgages Abroad mortgage?
Virtually
anyone can apply for one of our mortgages provided they are
21 or over and are currently a UK resident and a homeowner.
We can also help if you're either employed or self employed.
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What
can I use the mortgage for?
Most
people will use it to realise their dream of buying a holiday
home in Florida. Others may choose to refinance an existing
mortgage with a US lender, to reduce their outgoings and the
additional piece of mind of dealing with a British based lender
with a Sterling mortgage.
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How
much can I borrow?
There
isn't a straightforward answer to this question. The amount
you can borrow depends upon the value of the property in Florida.
You should however, think carefully about how much you can
comfortably afford to pay each month.
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Will
you take into account, any rental income I receive from my
holiday home in Florida, in assessing the amount you will
lend me?
We
may be able to consider a proportion of the rent you are likely
to receive from renting out your property.
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How
do I apply?
British
Mortgages Abroad and International Mortgages have teamed up
with a number of sepcialised intermediaries. They will advise
you on the most appropriate product for you and on the whole
process of buying a holiday home in Florida.
You can also apply here using our online
form
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Do
you require details of my/our income(s) before granting the
mortgage?
Dependant
on the portion of the purchase price you are paying from your
own resources, you can simply "Self Certify" that
you can afford the amount you want to borrow, without the
lender seeking further confirmation of your income. Full details
are contained in the Mortgages
at a glance guide.
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How
much will it cost to arrange my mortgage?
The
fees for arranging a mortgage vary from time to time. Please
refer to the Mortgages at a glance
guide for more details.
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Is
there any exchange rate risk in taking out a Sterling mortgage?
The
mortgage that we will offer you (subject to our normal checks)
will be in Sterling and will be exchanged into dollars on
a given day to assist you with the purchase of your Florida
holiday home. To remove some of the uncertainties of currency
fluctuations, we will guarantee the dollar/pound exchange
rate on the date we issue your offer, for a period of 21 days.
A fee will be payable for this facility (see the Mortgages
at a glance guide for more details).
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How
long will it take?
The
good news is that we let your Intermediary know almost immediately,
if we are prepared in principle, to lend you what you want,
subject to the results of our enquiries. These enquiries usually
involve checking the information you have sent us and carrying
out a valuation (known in the US as an Appraisal) of the property
you have chosen. We may, at our discretion, also carry out
a number of other checks such as confirming your income from
your employers and taking references from your existing lender.
This process will be completed as quickly as possible, at
which point we will issue you with a formal offer of advance.
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What
happens if I do not complete the purchase of the property
(close) on the agreed date?
If
you wish to set a new date for the purchase of the property,
a fee will be payable, to support your purchase of the property.
Other fees may also be payable to the Title Company for the
delay in purchase/refinance. Should you fail to complete the
purchase/refinance, only those fees that have not been utilised
will be refunded.
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Can
I rely on the valuation (Appraisal) you have carried out on
the property or do I need a more extensive Appraisal?
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Before
we can offer you a mortgage, we need to obtain an estimate of
the value of the property offered as security. However, you
should bear in mind, that it is intended solely to tell us that
we can lend the amount you have requested. It is not a detailed
appraisal of the property and you must not rely on it to guarantee,
either the property's overall value or its condition. You may
therefore wish to arrange a more extensive report on the property.
Who
can assist me with the purchase of my holiday home in Florida?
The
process of buying a property in Florida is different from
Britain. You will need a Title Company, whose job it is to
check that the title of the property is okay and to handle
all of the other documentation associated with your holiday
home purchase. When they have confirmed everything is in order
and all the necessary documents have been signed we will send
the advance to them to complete the purchase.
You will also need to use a Notary Public who is completely
independent of the Bank and the Title Company to notarise
all the necessary documents.
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Over
what period can I have my mortgage?
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You
can choose the term of your mortgage and this may be up to 25
years.
How
do I repay my mortgage?
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You
may have some uncertainties about the process of buying a
property in Florida for the first time but you can rest assured
that the method of repaying your mortgage is familiar to you:
- Capital
Repayment
Your normal monthly payments to us will comprise two
elements, the interest due to us on your mortgage and a
payment towards reducing the mortgage itself. In the early
years the payments are predominantly made up of interest,
while in the later years more of the repayment goes towards
repaying the capital. By the end of the term of the mortgage,
provided all the repayments are made on time, there is an
absolute guarantee that the mortgage will be paid off.
- Interest
Only
The key feature of this option is that you do not
normally repay any of the mortgage until the end of the
term. You simply pay us all the interest due on your mortgage
on a monthly basis. You will need to make your own arrangements
to enable you to repay the mortgage from your own resources
at the end of the mortgage term. This option gives you the
freedom to decide how you will do this, whether it is by
using savings, insurance policies, investments, an inheritance
or even by selling the property.
What
interest rates apply?
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Reassuringly
they will be based on British rates, providing you with value
for money mortgages. There are a number of ways in which interest
may be charged and the Mortgages
at a glance guide, highlights which ones are available
If
interest rates go up, can you still afford the payments?
The
table below, which is provided for illustration purposes only,
shows the amount you would pay each month, for every £10,000
you borrow on a Interest Only mortgage. You will see that
the monthly payment varies significantly as interest rates
change.
|
Interest
Rate
|
Monthly
Interest per £10,000 Borrowed (Interest Only)
|
|
5%
|
£42
|
| 7.5% |
£63 |
| 10% |
£83 |
| 12.5% |
£104 |
| 15% |
£125 |
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Do I need to arrange home insurance?
It
is a condition of your mortgage that you will need to have
your property insured for its full reinstatement value. This
is the estimated total cost of rebuilding your home if it
is completely destroyed. Our valuer (known as an Appraiser
in the US) will work out this cost when the property is being
valued to make sure that it is a suitable security for the
loan and we will let you know how much insurance cover you
will need.
It is your responsibility to ensure that your property is
adequately insured. Your intermediary can help to arrange
Building Insurance cover for you (known as Hazard Insurance).
The policy must be acceptable to us, and the policy must be
noted with our interest in your holiday home.
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How do I make my monthly payments?
We
always collect our monthly payments on our mortgages using
direct debit from your bank or building society in Britain.
These payments will be collected in Sterling. We will provide
you with a Direct Debit Instruction, which you will need to
complete and sign, in order to instruct your bank or building
society to honour our monthly requests for payment from your
account. As the interest rate applicable to your mortgage
changes, we will vary the amount we collect from your account.
We will always tell you in advance what your new monthly payment
will be and, apart from ensuring that there is enough money
in your account, you will not have to take any action at all.
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Who
do I pay my monthly payments to?
British
Mortgages Abroad is a licensed trading style of First National
Bank Plc, who is part of the Abbey National Group. When you
complete the purchase of your holiday home in Florida the
mortgage is set up on the systems of First National Bank's
UK mortgage arm, First National Mortgage Company. This is
the name that will appear on your Bank statement.
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Can
I pay my fixed rate mortgage off early?
Yes,
you can.
However, if you chose to repay during the fixed rate period,
you will incur a redemption fee. Please refer to the Mortgages
at a glance guide.
Of course, if you are redeeming your mortgage to take out
another mortgage with us, perhaps to move to a larger property,
we may waive or reduce these fees. All our mortgages are portable,
subject to status and appraisal.
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Can
I make additional payments?
Yes
you can.
On our Flexible
Tracker product, you have the freedom of making additional
payments when you like, which could save you thousands of
pounds in interest charges. We calculate interest on a daily
basis; therefore any extra payments that you make, over and
above your monthly mortgage repayment, will reduce the capital
balance on your mortgage immediately.
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What if I get into difficulties?
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The
amount that you can borrow will be calculated on the basis of
your personal, financial circumstances at the time you apply.
It is always possible that your circumstances may change and,
as a result, you may run into problems keeping up your mortgage
payments. If this happens, we will always offer a sympathetic
ear and we will be pleased to give you personal help and advice.
However, it is absolutely vital that you talk to us as soon
as the problem arises. The earlier we start working together
to solve your difficulty, the better.
What Next?
If
the thought of dealing with a lender that speaks your language
in more ways than one, is appealing then contact your intermediary
to find out how you can turn the dream of owning a holiday
home in Florida into a reality.
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