Buying a flat in UK but financed from Singapore

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akay
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Buying a flat in UK but financed from Singapore

Post by akay » Wed, 30 Jan 2013 9:55 pm

Does anyone know any banks that offer a mortgage / loan on a UK property but financed from income from Singapore?

Thank you in advance

Singapore Property Search

 

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JR8
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Post by JR8 » Thu, 31 Jan 2013 1:19 am

You might be a candidate for using a mortgage broker to navigate through this. If so, I have used http://www.savills.co.uk/services/inves ... nance.aspx

But as you see, they are based in the UK.

Property financing is pretty parochial IME. You could use a bank in Country A to finance a holiday home in Country B, but expecting a Country A bank to fund your home in Country B when you don't live there is swimming against the tide IMHO. The stronger that tide, the significantly higher the fees.

What you might consider is taking out a buy-to-let loan. This is a loan ostensibly to buy investment property to let out. Typically you need to pay 15-25% down, and the projected (professional valuers) rental income must be 125-130% of the monthly mortgage expense. Those are the two main hurdles.

The downside is that as a BTL the rate and fees will be slightly higher than offers made to owner-occupiers, but these days the margins are much lower, and the ability to switch products with reduced tie-ins etc are much greater than say back in the 90s.


Good luck. These days I'm a professional London landlord. So happy to try and field any follow-up questions that you might have.

akay
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Post by akay » Thu, 31 Jan 2013 7:00 am

Thank you for your reply JR8. I am looking at a buy to let mortgage. I have explored mortgages in the Uk but they required earnings in GBP. What I noticed is that interest rates are so low here so I was looking to see whether I can take advantage of this. A

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Post by JR8 » Thu, 31 Jan 2013 8:24 pm

akay wrote:Thank you for your reply JR8. I am looking at a buy to let mortgage. I have explored mortgages in the Uk but they required earnings in GBP. What I noticed is that interest rates are so low here so I was looking to see whether I can take advantage of this. A
Hmmm... well maybe things have changed since I last did a remortgage c5 years ago. I'm taking it that that was explained to you but someone who fully knows what he's talking about?

The point is a BTL mortgage should be (well it always was) completely self-supporting, that's why the lender will get a 3rd party survey on value and rent. A broker will want a three-year history on your salary and typical outgoings but that's more a part of gaining a financial profile of their client.

What I'd suggest is e-mailing the brokerage I suggested.
And also contacting this broker... http://www.lcplc.co.uk/ . I've heard them praised many times (incl by landlord friends of mine). I haven't ever used them but I do always check them when scouting the market.

The other option is 'go to the mother-source', or about a close as one can. http://moneyfacts.co.uk/ where you will find most current mortgage products on the market listed. I say most as the brokers do have access to products that don't get published, ('exclusives' - they might be a small tranche or only available for a month... that kind of thing).

The thing with low SGn interest rates is an interesting one. But do keep in mind there is a somewhat direct correlation between interest rates and cross-currency rate differentials. In brief, you'd be receiving rent in £ to pay a mortgage in S$. How are they going to instruct a 3rd party valuation? I rather suspect that that is just going to be too 'exotic' for most (all?) banks in SG. But there is no harm in checking into it. On the face of it probably the bank/branch who might well have fielded this question before is StanChart at Raffles Place.

If you do contact them please let me know what they say.


p.s. another suggestion is to go here
http://boards.fool.co.uk/property-inves ... d=12737340

The Motley Fool, forum > 'Property Investing - Practical'. Have a dig about, read the FAQ, do a 'Threaded-view/Collapse-all' search going back say 3 months. It is quite possible something like your situation has been recently discussed. But if not, then post your question. There are some very very wise property investors and landlords there, and I'm sure they'll be happy to guide you (and even happier still if you evidently have done some digging around yourself before asking your question!).

Good luck!

p.s. Anything else you want to follow-up on: No problem, fire away!

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Post by PrimroseHill » Mon, 04 Feb 2013 11:28 am

We did just that whilst back in London during Christmas. We used a financial advisor from over in SG. I had gotten quotes from RBS/Natwest as well as Liverpool Victoria, however, interest rates for btl is still quite high. About 3%. Found a great financial advisor through colleagues and arranged a mortgage from a local bank here, rental income in GBP, interest rates in SGD. Like a hedging account. Interest rates are 1.5%
Fingers cross, everything will go through smoothly.

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Post by JR8 » Mon, 04 Feb 2013 6:33 pm

Wow... that's amazing! :-O

If we get to meet up at a social later this year I'd be fascinated to know how they set that up!

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Post by FaeLLe » Wed, 07 Aug 2013 2:06 pm

Reviving this thread to see if any more parties went about getting a UK Home Loan financed from Singapore.

Are the lower interest rates here beneficial considering the volatility and risk in GBP-SGD currency conversion rates?

Can you avail of a home loan in GBP and repay it in GBP but disbursed and financed from Singapore? Anyone of such products from banks?

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Post by Hannieroo » Wed, 07 Aug 2013 2:24 pm

It's difficult because of the money laundering laws. You can use an international mortgage broker but no guarantees.

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Post by bgd » Wed, 07 Aug 2013 3:21 pm

I have a NZ property financed through the ANZ Private Bank in Singapore, i.e. a SGD mortgage. Interest rate is less than half and as I have a lot of equity in the property I'm unlikely to be impacted by FX volatility. The NZD has been less volatile than GBP over the time I've been here though.

Check out the UK banks with Sg branches, there is probably a comparable service on offer.

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