Explainer | What Hongkongers buying UK property need to know about the mortgage process and requirements
- Analysts say now is a good time for foreign buyers, including those based in Hong Kong, to buy property in the UK
- Here is what potential buyers need to know about mortgage requirements, the buying process and the types of loans available
Here we break down these requirements, explain the buying process in the UK and look at the range of mortgage offers available for potential buyers.
What is the step-by-step process of applying for a mortgage loan in the UK?
The process begins with a mortgage fact-find document from the mortgage broker, which is sent to the applicant to collect information, said Kallem Brooks, associate director at Bond Finance, a mortgage broker regulated by the UK’s Financial Conduct Authority that helps buyers from Hong Kong, Singapore, mainland China and Europe.
After that, the broker researches the best mortgage options for that particular client’s strategy and reviews the asset the client is purchasing or remortgaging.
A research advice is sent across on email with the broker’s choice of the best lender and finance structure, followed by a client call to discuss in detail. The advice given depends on whether the client is purchasing in their personal name or that of a UK limited company.
After this, the broker prepares a presentation paper for the approved terms of the loan. An agreement or a decision in principle follows this.
The process next moves forward to the stage of formal lending underwriting, which requires a series of documents from the borrower.
