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International Mortgages

International Mortgages

Old Mar 8th 2015, 1:42 pm
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Default International Mortgages

Afternoon,

I've seen a few threads and searched a bit, but have some quick questions.

These mortgages are still available? Or just harder to come by from mainstream banks?

Are they typically more expensive to arrange?

Are the interest rates competitive or better / worse than typical UK?

Finally, do they need to be specific Buy to Let or Owner types or can you do as you please?

If buying-to-let, the income is obviously taxable (depending on threshold) and before we go too far; the income is 500 rent a month x 12 months = 6000 a year rather than 500 rent - mortgage = 50 a month x12 = 600 a year...I'm assuming?

(Also assuming the change in number of days I'd be allowed in Blighty changes but i'll look that up).

Thanks for the help with these (hopefully) quick questions.

Scampwantsbricksandmortar
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Old Mar 8th 2015, 3:11 pm
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Default Re: International Mortgages

I had a look at HSBC last week on the buy to let side. Min 100,000.00 GBP, they give indications for 25% deposit and 35% deposit. They will give you up to 10 of them...

something about not requiring income evidence if your expected rental is 130% of the mortgage payment.

https://www.expat.hsbc.com/1/2/hsbc-...es-and-lending, and then there is an option for residential and for buy to let.

Norm and Meow will likely pop along shortly with better info.
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Old Mar 9th 2015, 4:06 am
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Default Re: International Mortgages

Originally Posted by Brains1983 View Post
I had a look at HSBC last week on the buy to let side. Min 100,000.00 GBP, they give indications for 25% deposit and 35% deposit. They will give you up to 10 of them...

something about not requiring income evidence if your expected rental is 130% of the mortgage payment.

https://www.expat.hsbc.com/1/2/hsbc-...es-and-lending, and then there is an option for residential and for buy to let.

Norm and Meow will likely pop along shortly with better info.
Thanks Brains. Kind of what I was hoping for is enough deposit to have a lower mortgage that easily covers the rent and perhaps towards any ground rent / service charges if an apartment.

When you say min 100k, I'm assuming that's the mortgage amount?
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Old Mar 9th 2015, 5:09 am
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Default Re: International Mortgages

Originally Posted by Scamp View Post
Thanks Brains. Kind of what I was hoping for is enough deposit to have a lower mortgage that easily covers the rent and perhaps towards any ground rent / service charges if an apartment.

When you say min 100k, I'm assuming that's the mortgage amount?
For the residential one, I seem to recall a minimum of 100k loan, although I may have confused that with advice seen elsewhere on the board. On the buy to let it is less, a minimum of 25k.
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Old Mar 9th 2015, 5:16 am
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Default Re: International Mortgages

Originally Posted by Brains1983 View Post
For the residential one, I seem to recall a minimum of 100k loan, although I may have confused that with advice seen elsewhere on the board. On the buy to let it is less, a minimum of 25k.
Yep, just had a read. Need to make sure I know the REAL rental value and make sure it's 130% by the looks of things.

Still, it's a start point, thanks again.
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Old Mar 9th 2015, 10:42 am
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Default Re: International Mortgages

Originally Posted by Scamp View Post
Afternoon,

I've seen a few threads and searched a bit, but have some quick questions.

These mortgages are still available? Or just harder to come by from mainstream banks?

Are they typically more expensive to arrange?

Are the interest rates competitive or better / worse than typical UK?

Finally, do they need to be specific Buy to Let or Owner types or can you do as you please?

If buying-to-let, the income is obviously taxable (depending on threshold) and before we go too far; the income is 500 rent a month x 12 months = 6000 a year rather than 500 rent - mortgage = 50 a month x12 = 600 a year...I'm assuming?

(Also assuming the change in number of days I'd be allowed in Blighty changes but i'll look that up).

Thanks for the help with these (hopefully) quick questions.

Scampwantsbricksandmortar
Why didn't you email me?

There are limited lenders that will arrange mortgages for expats and you'd need a deposit of at least 25%, preferably more, and to be borrowing GBP 100k plus.

Criteria for UK mortgages has become stricter generally and is even more so for expats. If you want I can introduce you to the broker friend I use for my clients. He can access deals you would not be able to and will make the process easier for you too.
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Old Mar 9th 2015, 12:30 pm
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Default Re: International Mortgages

Originally Posted by Meow View Post
Why didn't you email me?

There are limited lenders that will arrange mortgages for expats and you'd need a deposit of at least 25%, preferably more, and to be borrowing GBP 100k plus.

Criteria for UK mortgages has become stricter generally and is even more so for expats. If you want I can introduce you to the broker friend I use for my clients. He can access deals you would not be able to and will make the process easier for you too.
I thought about it, but would rather not bug you too much until completely desperate ;-)

Plus, I'm still, as it is becoming clear, a little off the cash money amount needed. But I want to know what's what because it makes it easier for me to save to a target.

Thanks for the help. Will drop you a line.
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Old Mar 9th 2015, 12:44 pm
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Default Re: International Mortgages

your tax workings are wrong. in short:
The capital payments against the mortgage are not deductible against your rental income
The interest payments against the mortgage are deductible against interest income.

Assuming you don't have much interest income, the interest losses that you are making are essentially useless as they cannot be deducted against the rent.

So... you pay tax on all rent, you don't really get to use the debt-tax shield for anything useful.
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Old Mar 9th 2015, 1:31 pm
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Default Re: International Mortgages

Originally Posted by Millhouse View Post
your tax workings are wrong. in short:
The capital payments against the mortgage are not deductible against your rental income
The interest payments against the mortgage are deductible against interest income.

Assuming you don't have much interest income, the interest losses that you are making are essentially useless as they cannot be deducted against the rent.

So... you pay tax on all rent, you don't really get to use the debt-tax shield for anything useful.
Pretty much what I assumed, thanks.
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Old Mar 9th 2015, 4:45 pm
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Default Re: International Mortgages

Also factor in Capital Gains Tax changes which might kick in in April.

Why not invest in equities in UK based property development companies? The dividend might well beat your BTL yield. Risks both ways, but as an expat myself I'd go for the former, for the hassle factor alone plus you can set a stop-loss and exit the position quickly, which you can't with your own property.

Last edited by Johnnyboy11; Mar 9th 2015 at 4:51 pm.
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Old Mar 10th 2015, 5:32 am
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Default Re: International Mortgages

Originally Posted by Johnnyboy11 View Post
Also factor in Capital Gains Tax changes which might kick in in April.

Why not invest in equities in UK based property development companies? The dividend might well beat your BTL yield. Risks both ways, but as an expat myself I'd go for the former, for the hassle factor alone plus you can set a stop-loss and exit the position quickly, which you can't with your own property.
Can you give a few examples of such UK property development companies or would an equity fund be a safer option?
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Old Mar 10th 2015, 6:07 am
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Default Re: International Mortgages

Originally Posted by mentalist View Post
Can you give a few examples of such UK property development companies or would an equity fund be a safer option?
a fund would be better than taking a direct punt
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Old Mar 10th 2015, 10:50 am
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Default Re: International Mortgages

Originally Posted by Scamp View Post
Pretty much what I assumed, thanks.
Presumably you would still be entitled to your 10,000 p.a. tax free allowance though and only have to pay tax on anything above that amount ?
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Old Mar 10th 2015, 11:08 am
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Default Re: International Mortgages

Originally Posted by Millhouse View Post
a fund would be better than taking a direct punt
Thanks MH but I am waiting for Johnnyboy to put his money where his mouth is, so to speak.
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Old Mar 10th 2015, 12:07 pm
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Default Re: International Mortgages

Originally Posted by Mogs View Post
Presumably you would still be entitled to your 10,000 p.a. tax free allowance though and only have to pay tax on anything above that amount ?
This is what I also assume, but will have to be told properly by someone who knows their onions before I get too excited.

It makes a big difference on any rent up to 833 a month.
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