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Mortgages Section
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Foreign Currency Mortgages from HSBC Bank
March 2005
The deal from the HSBC Bank looks good deal for non-UK residents working either in the UK or around the world.
People who buy UK property but paying for it not in sterling can now have zero exchange rate risk on the monthly mortgage payments. Just take out the mortgage in one of six different global currencies;
- Euro
- US Dollar
- Australian Dollar
- New Zealand Dollar
- Canadian Dollar, and
- Hong Kong Dollars
Obviously HSBC also offers mortgages priced in sterling.
Another feature of the mortgage deal is that you'll be offered the chance to switch currency every year, a useful feature if you're often posted to different countries.
Foreign Currency Mortgage Details as well as being able to borrow in the same currency as your salary, you'll be able to switch the currency of your mortgage once a year - useful if you're moving country and will be paid in a different currency, for example.
- Eligibility: Open to non-UK residents
- Mortgage type: Capital repayment and Interest only
- Term: Repayment mortgages: 25 years, Interest only mortgages: up to 15 years
- Rate: 1.5% over relevant currency base rate
- Amount you can borrow: Minimum $100,000, Max $1million or currency equivalent
- 1) Borrow up to 70% of the professional valuation or purchase price (whichever is lower); and
- 2) Notwithstanding salary multiples, total financial commitments including proposed mortgage must not exceed 60% of net income. (Overtime, bonuses excluded unless guaranteed in writing). If letting out up to 80% of any UK rental income (either currently, or to be received)
- Salary multiples: Sole applicants - 3.25 x annual salary. Joint applicants - 3.25 x highest salary + 1.25 lower salary OR 2.5 x combined
- Arrangement fee: $1,250 or currency equivalent
- Repayments: An Offshore Bank Account in the same currency as the loan will be used to make the monthly mortgage payments
- Currency switching: Can switch currency of the mortgage once in every 12 month period. £250 or currency equivalent will be charged
- Security: HSBC Bank plc will take first legal charge over the property to be purchased
- Life cover: Adequate life cover should be in place
- Property type: Freehold or leasehold, with a minimum period of 25 years of the lease remaining beyond the term of the mortgage
- Tenancy: Property can be let. Approval is needed
- Employment status: Salaried employment, or those in occupations such as doctors, solicitors and accountants.
Contacts
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