International Mortgages
#1
Account Closed
Thread Starter
Joined: Feb 2011
Posts: 0
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
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
#2
BE Forum Addict
Joined: Sep 2009
Location: Abu Dhabi
Posts: 1,805
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.
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.
#3
Account Closed
Thread Starter
Joined: Feb 2011
Posts: 0
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.
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.
When you say min 100k, I'm assuming that's the mortgage amount?
#4
BE Forum Addict
Joined: Sep 2009
Location: Abu Dhabi
Posts: 1,805
Re: International Mortgages
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.
#5
Account Closed
Thread Starter
Joined: Feb 2011
Posts: 0
Re: International Mortgages
Still, it's a start point, thanks again.
#6
Re: 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
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
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.
#7
Account Closed
Thread Starter
Joined: Feb 2011
Posts: 0
Re: International Mortgages
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.
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.
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.
#8
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.
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.
#9
Account Closed
Thread Starter
Joined: Feb 2011
Posts: 0
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.
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.
#10
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
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.
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.
#11
BE Forum Addict
Joined: Aug 2011
Posts: 2,578
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.
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.
#15
Account Closed
Thread Starter
Joined: Feb 2011
Posts: 0
Re: International Mortgages
It makes a big difference on any rent up to 833 a month.