Concrete Analysis | Buying UK property: here’s a tactic to get faster mortgage loan approval to fund your purchase
- If you are not paying fully in cash, financing from UK lenders can attract a long list of questions about the origin of your down payment
- Financial support from family members needs to be verified, while company-sourced funds bring ‘the worst headache of all’ for clients of StarPro Agency
Imagine this: you spent several weekends in a fancy hotel showroom where property agencies showed you the nice neighbourhood and lucrative rental income. Then, just before you decided to take the plunge and sign on the dotted line, you realised it made more sense for your current financial health to draw a loan than to fully pay in cash.
If you expect the mortgage procedure at British banks to be largely the same as what you have experienced in Hong Kong, you might be in for a not-so-pleasant surprise.
Unless your special ability or unique working experience create suspicion of money laundering or land you on any international “blacklists,” Hong Kong banks mostly take your word for it regarding your source of funds to settle the down payment for a mortgage under 60 per cent of the property price.
For higher advance mortgage loans, Hong Kong Mortgage Corporation, the official mortgage insurance underwriter, checks homebuyers’ source of funds more rigorously. The purpose is to make sure the initial down payment is not a loan from other banks, which would subsequently increase the risk to the wider financial system.
