SJP Managing your property

Providing advice on mortgages in isolation is not our belief. Instead, we take a broader perspective, seeking to understand your financial needs in detail to ensure that your mortgage arrangements are consistent with a wider financial plan.

What is a mortgage?

A mortgage is simply a loan secured on a property and/or land. It’s a large loan taken over a long period of time. The ‘secured’ part of the description means that if you do not make your mortgage payments and fall into arrears, then the mortgage lender has the right to repossess the property and sell it to repay the money you borrowed. 

If the lender does repossess your home and the sale proceeds do not cover what you borrowed, you will still have to pay back the shortfall. Situations like this are why mortgage planning is critically important. Homeowners need to ensure that they have the right mortgage, at a level they can afford. 

Working with financial advisers can provide valuable support in navigating the complexities of mortgage options, interest rates, and repayment terms, ultimately empowering homeowners to make informed decisions. 

Tailored mortgage planning and strategy

Initial mortgage consultation

Effective mortgage planning begins with a thorough assessment of your housing goals, financial readiness, and current cash flow. For expats, this includes evaluating income sources, overseas assets, and currency considerations.


Customised strategies

Each mortgage plan is uniquely tailored to the client's individual circumstances and aspirations. This includes factoring in future property investment goals, international earnings, and long-term residency plans.

 

Managing currency risks and foreign exchange

Currency fluctuation management

Expats paying mortgages in a currency different from their earnings face risks from exchange rate fluctuations. Consult with a financial consultant for a more in-depth information.


Currency and mortgage tax implications

For expats, currency fluctuations have tax implications which should be factored into your mortgage planning. Additionally, expats should familiarise themselves with local property taxes. These taxes can affect your ongoing mortgage payments and overall investment returns. Consulting with cross-border financial advisers can help you navigate these complexities and optimise your tax position.

Documentation and legal considerations

Required documents for expats

Securing a mortgage as an expat requires specific documentation. Salaried individuals typically need to provide passport and visa copies, salary certificates and bank statements, proof of residency in their home country, and credit history reports. 

Self-employed expats often face additional requirements, such as providing proof of business ownership, audited financial statements, and income tax returns.


Legal implications and repossession risks

Understanding the legal framework surrounding mortgages is crucial when planning. Familiarise yourself with the terms of the mortgage agreement, including potential penalties, default consequences, and repossession risks. Seek legal counsel and consult a financial advisor to ensure you fully comprehend your rights and obligations.

 

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. You are advised to seek independent tax advice from suitably qualified professionals before making any decision as to the tax implications of any investment.

Advice relating to a mortgage involves the referral to a service that is separate and distinct to those offered by St. James’s Place.

Buying or re-mortgaging? Let’s talk

Whether you’re looking to buy a property and wish to re-mortgage, there are additional factors to take into consideration. Our financial advisers can walk you through the process.

Contact us