When working and renting an apartment in the UK, we often think about buying our own in Poland. To this end, we want to take a mortgage in one of the domestic banks. There are two options: we are going to do it after returning or when we are still in the UK. How to do it
Buying an apartment in Poland seems to be a very good investment. This is the goal of many people who emigrated to the UK. We often don’t want to spend all our life in this country. We are going to earn and return to my homeland.
Theoretically, we can take out a loan in Poland, pay a relatively small installment and work quietly in the UK. Not only will we pay off a larger part of it, we can also rent them. When we return to Poland after many years, a significant part of the mortgage will be given back. However, is it really that easy?
Banks are reluctant to grant loans to immigrants
First of all, you should know that banks are not very willing to grant any loans to those who earn in a different currency. The reason for this is the so-called Recommendation.
Although there are exceptions to this. People earning pounds, dollars and especially the euro are in a better position. Therefore, find out if you have a chance for any loan in a Polish bank.
What are the requirements?
Let’s start with the requirements that must be met to have a chance for a regular cash loan in Poland. First of all, you have to have a permanent job for at least half a year. And it’s full time. Maybe a translation of relevant documents will be required, necessarily by a sworn translator. Of course, you’ll also need to provide proof of income. They cannot come from a business activity, only a full-time job or a pension is awarded. A list of payments to your account is also required, usually from the last six months. Your credit history will also be checked. You will need to submit a report from Equifax, Experian or Callcredit.
As for the mortgage, you need to know that since September 2014 it has been granted only in the currency in which you earn. This is the result of the franc loan scandal, which, due to fluctuations in the exchange rate, has prevented many people from paying back. The way out is, then, borrowing money with someone who makes money in zlotys. Remember, however, that this person must have credit standing. However, you have the chance to take a mortgage in pounds. Unfortunately, very few banks provide it.
The reason is simple, no demand. You also have to reckon with a more expensive and longer procedure. Try your hand at Alior Bank. Remember, however, that offers are constantly changing. So find out if you are still providing your mortgage in pounds. Check all conditions, however. The foreign currency loan offer is usually less favorable. You have to take into account a higher margin and other costs.
A loan in the UK for an apartment in Poland?
You can also convert your mortgage. However, this brings high costs. Unfortunately, it is not possible to take a mortgage in the UK for an apartment in Poland. This is due to the fact that you are giving the property as collateral. If it will be in another country, the bank may have big problems with taking it. There is some hope, however. Well, some British banks offer large cash loans for any purpose.
You don’t have to explain what you spend the money on. This amount can reach up to 50,000 pounds. For so much money, you can think about buying an apartment even in large cities. Such loans are relatively low-interest (e.g. 6.9% at the Royal Bank of Scotland) and granted for a fairly short period of time. For example, 8 years.