Frequently Asked Questions and Answers on Housing Loans for British Immigrants

Many people will choose to buy a house in the UK, so what are the common problems in applying for a loan in the UK? This is a problem that many people care about. Let's take a look at the frequently asked questions about housing loans for British immigrants. Welcome to reading.

I come from China, and my income is also in China. Can I apply for a mortgage in the UK?

Yes, but there are not many banks that can accept overseas income loans now. If there is local income, there are not only more than 100 banks to choose from, but also portfolio loan products from different banks according to their own needs. For China people whose income is in China, the mainstream in the market at present is the Bank of China in Britain, as well as the relatively small HSBC and Standard Chartered Bank. However, the policies of these banks are constantly changing. Due to Britain's withdrawal from the EU, uob announced to stop this loan service in June 20 16, and it was gradually opened in the first half of 20 17. This aspect will be introduced in detail later.

I have a lot of real estate assets in China, but my income is not high. Can I apply for a loan?

Yes, there are many sources of income defined in Britain, such as income, rent received by real estate, extra income, etc., but the valuation of real estate itself is not the main consideration. In 2007, due to the economic crisis in Britain, many related policies were formulated. In order to reduce the bad debt rate and default rate, the policy pays more attention to cash flow than inherent assets, but the cash flow generated by inherent assets can also be considered.

3. What percentage of loans can I apply for and how low the interest rate can be?

The loan products of different banks are different, mainly for personal qualifications and needs. For example, HSBC has a fixed interest rate of 1.98% in the first two years and 3.5% in the later period. Although the interest rate in the previous two years was low, its general application was based on the multiple of the shared rent, so the ratio was not only low, but most of them required to go to the UK for face-to-face visa and deposit requirements. These objective requirements have greatly increased the cost of loans. Therefore, according to different qualifications, choose the loan product that suits you best and has the best cost performance.

I have a high income, but some of it is not taxed. Can I get a loan?

Yes, most domestic business owners or self-employed individuals have good cash flow, but there is no corresponding tax bill. This requires professional financial treatment, and also explains to banks that for the corresponding banks, they can make loans with good cost performance.

I already have a house in England and want to refinance it. Is it okay?

Yes, there is a 20% differential tax on real estate transactions in Britain, so unlike China, most investors will choose the value-added part of refinancing. However, the specific evaluation amount varies from bank to bank, and its core will be the main reference of BTL investment real estate, its rent, real estate evaluation and lots. In principle, it is similar to the first loan and can be operated completely.