Premier Expat Mortgages – Offshore Secured Loans

CENTRAL DISTRICT, Hong Kong - Sept. 1, 2014 - PRLog -- Whether you are looking to take a dream holiday, consolidate some bills or even just release some equity from your UK property.  Secured loans were primarily restricted to the onshore UK residential market with applicants based in the UK at the time of application. Things have now changed as lenders now see offshore expats in a different light than in previous years. Offshore expatriates tend to be better well paid than their UK counterparts particularly as it’s considered that expats either uproot their families to move abroad or tend to leave family at home to pursue their careers. Whichever way it is expats are paid a better income and then also some of the employers may add in a housing allowance and various perks to keep their employee happy. Another aspect that can add to an expatriates healthy bank balance is working in a country with a lower tax rate than the UK or their previous country which gives them a good advantage to save more or to have more free cash each month. In Dubai and the UAE earnings are tax free and even in Asian countries such as Hong Kong and Singapore with top tax rates at 16% and 20% respectively this may be the reason why so many people become expat workers and don’t want to return home.

The secured loan landscape has now changed in that as long as an expat has his or her own home in the UK with a current mortgage and good equity that they will offer the client some favorable options with a secured loan and also bridging finance. The rates on offer can be from 6.5% upwards and the less favorable applicants financial are the rates get higher to account for the less desirable client. The good thing about this though is that you will be offered a higher rate and not refused a loan. I think clients prefer to be offered a higher rate and to have the chance of a loan than be offered no loan at all. Secured loans can be taken from a 5 year basis up to a 15 year basis and in some instances lending of up to 75% loan to value and interest only options are available.

The application process generally takes from as little as 7 days up to 1 month. A lot of this time is taken up with applicants gathering their documentation together so the lender can start the process of getting the application to their credit and underwriting department. After the case has been assessed there may be a request for more documents so the underwriter can satisfy their internal procedures and have the case agreed and lending put in place. The below would be a request from the lender of typical documentation:

·         Personal contact information such as 2 proofs of ID. Local ID card and Passport would be sufficient.

·         Proof of address such as a utility Bill. Dated within the last 3 months.

·         3 months bank statements.

·         3 months of pay slips.

·         Latest 2 years tax returns (if paying local taxes)

·         Proof of any assets and liabilities (dependent on lender applied to)

·         Certified copies of accounts (if self-employed)

After the loan is agreed and after signing the initial secure loan agreement to lend the lender will arrange a valuation by an independent surveyor or valuer to ensure the property is inspected to ensure the valuation amount is correct. If there is any change to the estimated valuation or not the lender will issue full agreement documents detailing the lending amount. Secured lenders lend anywhere from £3000 to £75,000 and even higher is special circumstances. After signing and returning the lending documents the lender will instruct lawyers to start the legal process to detail any searches required and have the lawyers request from the first charge mortgage company for them to obtain a second charge on the legal title. First lenders generally allow second charge lending as any default that may arise the second charge lender is the one that will take action and bring the defaulter to account saving the first charge lender the hassle of this job. As previously mentioned the whole process should take 3 to 4 weeks on average dependent on the documents required for application.

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Ged Ward