Britain, as one of the most popular housing investment country in the world, has been hotly held by global investors. UK property investment has many advantages, including the world’s leading educational, global business gathering, free and open markets, and sound infrastructure. For most investors who invest in British property for the first time, they normally get the property by housing loan. And now, we will give you the full analysis of UK housing loans, on how to but a house in the United Kingdom and how to apply for the housing loan.
Documents you need for housing loan
2.Bank statement from last three months
3.Payroll and latest tax payment certificate from last three months
4.Last 2-3 years financial statement and tax payment certificate
5.Tax calculation form
6.Certificate of Deposit
How to apply for housing loan
Hand over your personal proof of assets, income statement, identification, and direct remittance to the Bank. After receiving the information, the British branch will make a preliminary assessment to determine the amount of the buyer’s loan.
Time Required: The initial assessment process can be completed in about a week, starting from the bank’s acceptance of the buyer’s documentation.
2. Room inspection by the buyer
If the bank gives the preliminary assessment results in line with your actual needs, then the buyer can go to the next procedure, conduct site inspection and then purchase the house. It is important to note that there is a third party inspection in the UK before buying a house and sign the purchase contract. The inspection report will not only describes the quality of the house and other relevant information, but also gives a corresponding valuation, which will determine the amount of final bank loans.
Time required: The bank was unable to control the inspection because it would be conducted by a third party agency. Usually, it takes about 1 months. The cost of a house inspection is usually borne by the buyer.
3. Loan approval, lending
After receiving the report, the bank will, according to the valuation of the report, together with the buyer’s financial status to give the buyer the final line of loan, and to sign a mortgage contract with the buyer at the UK local lending rate.
Time required: About 1-2 weeks
The remittance, loan interest rate, the proportion of loan and other relevant detail
1. The proportion of loans
The proportion of mortgages that a buyer can obtain are closed related with their own financial conditions, property evaluation and the usage of the house. According to the practice of British bank, buyers who buy their own homes have less down payment and can get a higher proportion of loans up to 80%. Buyers who invest in housing purchases need to pay higher down payment, up to 75% of their loans.
2. Loan ratio
British mortgage rates are floating interest rates, it various according to the user’s demand for housing, the details are as follows:
Buy for living: 2.68% on the basis of the Bank of England benchmark interest rate and float on that benchmark interest rate for the duration of the loan.
Buy for investment: 3.38% on the basis of the Bank of England’s benchmark interest rate, which fluctuates with the benchmark interest rate for the duration of the loan.
According to the buyer’s financial status, the longest loan period that British bank can offer would be 25 years.
The specific amount of the valuation fee is based on the purchase price of the house and will be paid when you submit the loan application. The bank will charge a mortgage fee, which is paid when you accept the loan agreement.
5. Repayment method
Home demand and investment needs of the mortgage, according to equal interest and interest in the way repayment.
These are the details of housing loan in the UK. The UK’s real estate investment market is now relatively stable, largely linked to strong and stable economic conditions in Britain, even as the UK economy continues to strengthen in the context of ‘DE-Europe’. In addition, the UK’s relevant legal system is perfect and transparent, for investors can be more assured.