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Expat Investor : May June 2009
EXPATRIATE MORTGAGES Lender Bank of Scotland International Barclays Wealth Halifax NatWest International NatWest Mtg Service Royal Bank of Scotland Royal Bank of Scotland Int N/A 4.99 3.5 4 4 4 4 EXPAT MORTGAGES in association with EURO MORTGAGES Rate % Max. % Fee 80 80 75 70 85 85 70 0.5-1% Varies Varies 0.75-1% £299-£1499 £299-£1499 0.75-1% Notes Lifetime tracker and fixed rates available Fixed, tracker and SVR Barclays Bank Fixed and tracker rates Fixed and tracker rates. Min £50k Standard mortgage range available Standard mortgage range available Fixed and tracker rates available Figures compiled: 3/5/09. Source: MoneyFacts www.moneyfacts.co.uk Expatriate = UK residents working abroad short-term and buying a property in the UK. Lender may allow property to be let. OVERSEAS PROPERTIES Lender Banco Halifax Hispania HSBC Investec Private Bank Leeds BS Lloyds TSB Newcastle Building Society Norwich & Peterborough BS Royal Bank of Scotland International International Private Finance Source: MoneyFacts Location Spain France, Spain, Malta France, Italy, Spain, Portugal, Monaco & Guernsey Gibraltar, Spain France, Spain, Portugal, Australia, NZ, Canada, US, Dubai, Hong Kong, Singapore & UK Gibraltar Gibraltar & Southern Spain Spain France, Spain, Portugal, Italy, Florida, South Africa, Bulgaria Leeds Building Society Investec Private Bank Lender Bank of Scotland International Notes Rate linked to EURO LIBOR + 2.90% with option to set rate for 3, 6, 12 months. Max 70% LTV. Interest only or capital repayment. Min £500k. Max term 20 years. Arrangement fee up to 1%. Redemption charge applies. Rates also available on same terms in US dollar, Swiss Franc, Japanese Yen and HK dollar. Rate linked to Barclays Bank 3 month LIBOR rate applicable for a 90 day interest period. For house purchase only. On an interest only basis, max 65% LTV, advance £500k, term 5 to 20 yrs and fee 0.5%. Redemption charge applies. Barclays Euro Current Account required. Rates also available on same terms in US dollar, Japanese Yen, Swiss Franc and Hong Kong dollar. Rate is based on EURIBOR +1.25% to 2%. Max 70% LTV. Upfront fee of up to 1%. Min adv of £1m in euro equivalent. No redemption fee penalty. Also available on same basis in US$, Swiss Franc Japanese Yen. Managed multi-currency also available. Irish € product. Rate based on EURIBOR + 1.45%. Max 75% LTV. No fee. No redepemption penalty payable. Mortgages for borrowers who are paid in euros to purchase or remortgage their main UK property Source: MoneyFacts Currency Euro Euro, Maltese lira or selected major currency Sterling, euro, Sterling, euro Currency of choice Sterling Sterling Euro, sterling Euro, sterling, US dollar What’s the mood of the mortgage market? Expat Investor asked Peter Bellwood, of Bellwood Prestbury, five key questions on the current state of the expat mortgage market. His anwers cast a positive mood for current borrowers in search of a bargain. 1) How would you describe the current expatriate mortgage market in terms of loan availability, terms and conditions, for sterling loans on UK property? PB: There are still lenders out there that are more than happy to offer mortgage finance to expatriates. Sadly, there are not as many lenders as last year and therefore less choice, but if you’ve got a sizeable deposit you’ll be surprised at the competitive terms that are available. It may seem strange, but there are number of expatriate mortgages available that offer much better rates than those available to someone living in the United Kingdom. For investment properties (buy-to- let) you’ll need at least a 25% deposit. For owner-occupied properties you can borrow up to 85%. 2) What is Bellwood Prestbury offering in this market? PB: Bellwood Prestbury is offering a complete mortgage service from start to finish – this starts with the mortgage advice on which deal and lender is best for you to the day you get the keys.We can even put you in touch with a solicitor who knows the process for expats, as lender requirements can be different. As we’re regulated by the Financial Services Authority, we can obtain mortgage finance from UK lenders as well as international lenders. A good range of tracker rates and fixed rates are available for both house purchase and remortgage. As nearly all of our enquiries come from outside the UK, we generally don’t do face-toface meetings and so we don’t charge a fee.We are paid a percentage of the loan amount by the lender to cover the cost of our advice and administration – this doesn’t affect the rate you pay. 3) What about the availability of buy-tolet mortgages for expatriates? PB: Most expats buy property with a view to returning at some stage in the future, and will often let out the property in the meantime. These mortgages are available from both high street and international lenders, but you’ll need at least a 25% deposit. Most UK lenders’ terms aren’t attractive for buy-to-let mortgages at the moment – you only need to look at best-buy tables to support this. A number of international banks have much better rates, and as long as you’re not resident in the UK you should qualify. 4) How best can expats prepare to secure a loan – what type of paperwork must be collated and submitted? PB: A deposit and proof of income are essential. In addition to a completed mortgage application, FOREIGN CURRENCY LOANS Lender Bank of Scotland International Barclays Bank Investec Private Bank NatWest Offshore RBS International Location UK property UK property UK & selected European property UK property UK property Currency switching allowed on all major currencies Source: MoneyFacts we’ll need certified ID and address verification and usually six months’ bank statements. For UK lenders you’ll need a UK bank account, as mortgage payments are collected monthly by direct debit. International banks will often require payment in quarterly instalments. 5) What about mortgage insurance cover – what’s available in terms of product type and cost? PB: Almost all the insurance that you would have in the UK is available when you’re an expat. A number of UK insurers will provide buildings and contents insurance on standard terms for expat-owned property. Again, as we’re FSA regulated. we can use UK insurers which aren’t available to brokers outside the UK. Standard life insurance, either on a level or reducing basis, is available in most countries on standard UK terms and premiums. For those working in high-risk regions like Afghanistan and Iraq we can still provide life insurance, but it’ll cost more. 22 EXPAT INVESTOR ● May/June 2009 expatinvestor.com
March April 2009