Go Back  British Expats > Living & Moving Abroad > Middle East
Reload this Page >

Multiple mortgages...

Multiple mortgages...

Old Jul 28th 2007, 9:14 pm
  #1  
Powered by cows
Thread Starter
 
Autonomy's Avatar
 
Joined: Jul 2004
Location: currently Dubai, ex UK
Posts: 4,582
Autonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond repute
Default Multiple mortgages...

Hello,

Just out of curiosity - anyone know any details regarding multiple mortgages in the UAE / worldwide.

For example - you have an exisiting mortgage in UAE for an off plan that will be completed in 2009 - you are not paying monthly installments until it is completed and thereafter you will rent and it will cover the monthly payments.

In the mean time you are wanting to buy a property to live in yourself.

Do banks lend on 2 mortgages in this type of situation?

Lastly - if you have a mortgage overseas - do you really have to declair this (I doubt it...) in a UAE mortgage application?

Indie - anyone else be able to shed a little light on this?

Thanks!

Auto
Autonomy is offline  
Old Jul 28th 2007, 9:55 pm
  #2  
Lost in BE Cyberspace
 
Madam Medusa's Avatar
 
Joined: Sep 2006
Posts: 18,187
Madam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond reputeMadam Medusa has a reputation beyond repute
Default Re: Multiple mortgages...

According to my hubbie, more than one mortagage is ok, assuming you can afford it of course...The Mortgage on the off-plan property won't kick in (in full) until the place is completed, and so it's fine for the mortgage payments to be offset by rent. As far as he's aware, mortgages outside the UAE aren't taken into account, and there is no obligation on you to declare...

Hope that helps!
MM, xx
Madam Medusa is offline  
Old Jul 29th 2007, 12:09 am
  #3  
Soupy twist
 
Joined: Dec 2004
Posts: 2,271
Eeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by Madam Medusa
According to my hubbie, more than one mortagage is ok, assuming you can afford it of course...
By being able to afford it, do you mean the finance companies want to see that paying both mortgages each month out of your own pocket won't exceed more than 55% (or whatever it is) of your salary? Or will they give you the extra mortgage on the understanding that you'll pay for it by renting the place out?
Eeyore is offline  
Old Jul 29th 2007, 12:33 am
  #4  
BE Forum Addict
 
IndieG's Avatar
 
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
IndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by Autonomy
Hello,

Just out of curiosity - anyone know any details regarding multiple mortgages in the UAE / worldwide.

For example - you have an exisiting mortgage in UAE for an off plan that will be completed in 2009 - you are not paying monthly installments until it is completed and thereafter you will rent and it will cover the monthly payments.

In the mean time you are wanting to buy a property to live in yourself.

Do banks lend on 2 mortgages in this type of situation?

Lastly - if you have a mortgage overseas - do you really have to declair this (I doubt it...) in a UAE mortgage application?

Indie - anyone else be able to shed a little light on this?

Thanks!

Auto
Ditto MM (or her hubby!)

You can apply for any number of mortgage loans - main criteira being your income (including rental income if any) and your ability to service your debt repayments (they would consider your Debt Burden Ratio - typically 60% of total income). Banks do ask about your finances and it is up to you whether you declare your debts in the UK or not.
IndieG is offline  
Old Jul 29th 2007, 12:55 am
  #5  
Powered by cows
Thread Starter
 
Autonomy's Avatar
 
Joined: Jul 2004
Location: currently Dubai, ex UK
Posts: 4,582
Autonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond reputeAutonomy has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by IndieGirl
Ditto MM (or her hubby!)

You can apply for any number of mortgage loans - main criteira being your income (including rental income if any) and your ability to service your debt repayments (they would consider your Debt Burden Ratio - typically 60% of total income). Banks do ask about your finances and it is up to you whether you declare your debts in the UK or not.
so as long as the debt burden ratio for 2 mortgages combined is 60% or less than salary + rental income then ordinarily this would be approved.

As long as mortgage 1 is covered by rental then this is effectively cancelled out then...

Regarding debt in other countries - they will ask - however is there any way for them to actually investigate / check the accuracy of your declaration? (Just curious...)
Autonomy is offline  
Old Jul 29th 2007, 5:05 am
  #6  
Banned
 
Joined: Jul 2007
Posts: 186
The Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really niceThe Diabolical is just really nice
Default Re: Multiple mortgages...

I own three properties. Two in Dubai, and one in the U.K.. Not declaring one of them in Dubai during the application process created a bit of a sticky wicket, and held up the entire process..
The Diabolical is offline  
Old Jul 29th 2007, 5:57 am
  #7  
Pog mo thoin
 
Miss Eck's Avatar
 
Joined: Jan 2006
Location: Dubai
Posts: 4,103
Miss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond reputeMiss Eck has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by The Diabolical
I own three properties. Two in Dubai, and one in the U.K.. Not declaring one of them in Dubai during the application process created a bit of a sticky wicket, and held up the entire process..
I presume they picked it up on the bank statements that you had to provide?

Automony - as you will not be paying out for the other property until 2009 you will be fine as regular payments will not show up on your bank statements. I have just taken out a mortgage here and I was not asked about any finances in the UK, albeit they did note that I send a sum of money to the UK each month and asked what it was for.

As for banks doing searches, not too sure but I think as long as you avoid banks with British connections you would be fine.
Miss Eck is offline  
Old Jul 29th 2007, 6:23 am
  #8  
BE Forum Addict
 
IndieG's Avatar
 
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
IndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by Autonomy
so as long as the debt burden ratio for 2 mortgages combined is 60% or less than salary + rental income then ordinarily this would be approved.

As long as mortgage 1 is covered by rental then this is effectively cancelled out then...

Regarding debt in other countries - they will ask - however is there any way for them to actually investigate / check the accuracy of your declaration? (Just curious...)
There is no way they can check that unless they see regular debits of a fixed amount in your account statement and then question you about it. Forget debt in other countries, they wouldn't even know if you had another one in the UAE if the repayments don't show in your account statement....
IndieG is offline  
Old Jul 29th 2007, 4:49 pm
  #9  
Soupy twist
 
Joined: Dec 2004
Posts: 2,271
Eeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by IndieGirl
Forget debt in other countries, they wouldn't even know if you had another one in the UAE if the repayments don't show in your account statement....
That's how a friend of mine got a mortgage here; he "hid" his outgoings (which would otherwise have disqualified him) in a separate account with a different bank that he didn't reveal to the mortgage lender.

But isn't there supposed to be a new credit check system arriving here soon?
Eeyore is offline  
Old Jul 30th 2007, 12:33 am
  #10  
BE Forum Addict
 
IndieG's Avatar
 
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
IndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by GarethR
But isn't there supposed to be a new credit check system arriving here soon?
Should have come long back - but most banks are so incredibly stupid here - they refuses to share any information. The Central Bank already has a Credit Rating System - but banks seldom update the CRS system when a debt goes sour! If there is a poor credit history, I know that banks purposely hide it so that they can get rid of the bad debt from their books and another bank gets saddled with it. Seen it happen on several occasions!
IndieG is offline  
Old Jul 30th 2007, 12:40 am
  #11  
BE Forum Addict
 
jvr20's Avatar
 
Joined: Mar 2007
Location: stuck at red
Posts: 1,525
jvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond repute
Default Re: Multiple mortgages...

I'm still getting used to how easy loans are to come by over here. I get a phone call every couple of weeks from one of the banks offering me a credit card. They never talk in detail, and never agree to fax/email me the T's and C's to read at leisure, but manage to promise the earth - one woman was quite happily comparing her 1.1% (per month) rate with another banks annual 6.5% rate! (and refused to believe me when i calculated her AER at 14% -"Take 1.011 and raise it to the power of 12...", her response: "No sir, not 1.011, I said 1.1 percent". Hmmm
jvr20 is offline  
Old Jul 30th 2007, 1:55 am
  #12  
BE Forum Addict
 
IndieG's Avatar
 
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
IndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond reputeIndieG has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by jvr20
from one of the banks offering me a credit card. They never talk in detail, and never agree to fax/email me the T's and C's to read at leisure, but manage to promise the earth - one woman was quite happily comparing her 1.1% (per month) rate with another banks annual 6.5% rate! (and refused to believe me when i calculated her AER at 14% -"Take 1.011 and raise it to the power of 12...", her response: "No sir, not 1.011, I said 1.1 percent". Hmmm
.....don't EVER fall for it. They can be extremely nasty when someone misses/falls back even once on an instalment/payment....
IndieG is offline  
Old Jul 30th 2007, 5:09 pm
  #13  
BE Forum Addict
 
jvr20's Avatar
 
Joined: Mar 2007
Location: stuck at red
Posts: 1,525
jvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond reputejvr20 has a reputation beyond repute
Default Re: Multiple mortgages...

Originally Posted by IndieGirl
.....don't EVER fall for it. They can be extremely nasty when someone misses/falls back even once on an instalment/payment....
thanks! i have no intention of giving in (nor anything to spend the money on). I'm planning to have a cash-watching session this week and see if I can account for all spending from my allowances and save 100% of the basic

The UK is going to seem SO expensive when i go back next week... <7.5 AED
jvr20 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.