Use equity from a house abroad?

[JCKST1]

I will try not to witter on to much but here is my idea, Just curious to see if it is possible?

I am 20 years old and run my own business, Been doing it for about 7 years now but only really started as a business about 6 months a go, I know it will work as it has done and got me a good living so far!
I have always wanted to get in to property developing and now I have quite a good bit of money coming in I am looking for a way in to it ASAP. The problem is the banks here want to see approx two years book's to grant me a mortgage, I have spoke to an advisor and there is a little bit of flexibility or other options available but nothing ideal.

My parents have a holiday home in Spain, I know the place and people well after living there for 12 months and frequent holidays. There is a couple of properties near by that have been repossessed and I know over the past 18 months a couple have sold for cheap, really cheap!
I have spoken to my parents solicitor over in Spain and it looks like it could be possible for me to get a mortgage on similar type of properties.
I was looking to buy one and hopefully rent it out long term or as much as possible, The monthly payments for them are that low though it really wont make much difference to me if its say empty for 6 months. I know a couple of neighbors have recently had offers for long term rentals, mainly from the Americans and Russians, I am not as desperate for the money as them and could rent it cheaper, which I would be planning on doing so fingers crossed I may get a long term rental.

My main question is though if I go a head with it am I likely to be able to get a mortgage in the UK sooner? Would owning this property go in my favour?

Thanks

[davepoth]

Buying in Spain at the moment is really dangerous. Even though prices in the "expat enclaves" have collapsed, there is still a chance they'll go further. Added to that, they aren't really that nice as houses.

Do your homework and buy quality property actually within the proper cities, and you'll do a lot better.

[JCKST1]

Cheers. The complex my parents property is on and the place I am thinking of buying is massive, Must have about 2000 properties and a couple of sets of apartments. Its just outside of Torrevieja and is central to most places, 10 mins drive you can be up int he hills or down on the front. It also has lots of facilites on site and is mainly English. From June to September its absolutely packed, Theres currently four bars on there and they are always packed.

I am not really in it for the money so much as like said the mortgage is next to nothing, Its hopefully a quicker route to get a mortgage in the UK and a long term investment. I think i could occasionally get a long term rent of even a few months out of the year to help.

[Sarnie]

Having a mortgage abroad will in no way help you get a mortgage in the UK.

[JCKST1]

Nightmare, I was hoping it may go in my favor to show I have a property abroad getting rented and that I can manage the money ok etc. As I have just gone 20 that's mainly what the bank seemed more interested about.

[Sarnie]

Why not just save a big enough deposit over the next 18 months, till you have 2 years of accounts, so that you can buy a UK property on a low LTV?

[davepoth]

Sarnie said:

Having a mortgage abroad will in no way help you get a mortgage in the UK.

Having income from a property might, but it would be better to have a big deposit.

[Sarnie]

davepoth said:

Having income from a property might,

No it wouldn't. Lenders will only accept rental income, as additional income, if the property is a BTL property, this would be classed as a Holiday Home.