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Old 26-06-2008, 01:35 PM
kk1974 kk1974 is offline
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Join Date: Mar 2008
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The banks will give you a mortgage for off plan developments provided the developer (and the development) has been pre-approved with them. So each project you are interetsed in you should contact the developer and ask them if there are any banks offering finance for that development. Important, don't take what they say for granted - go to the bank and double check with them. Even then, that is not a guarantee. If mortgage is your only option, then DONT put down any deposit before you have got an agreement in principle or actual offer from the bank.

For foreigners, 70% LTV is the maximum finance possible.

In terms of buy to let mortgages for off-plans, most of the banks will base their lending criteria on your income and the financial commitment you have. So you will not be able to buy that many properties in that way. However, that's changing now. I spoke with Barclay's some weeks ago and they are now giving mortgages based on the rental potential of the property after the handover.

For most of the lenders, during the construction you will be paying interest only, and proper repayments will start after the handover.

With finished property, as long as you have first tenancy agreement most of the banks will give you mortgage, almost regardless of who is the developer.

If you are looking to buy and sell before completion, then mortgage is not the best solution. There are many reputable developers who have excellent payment terms - 20/80, 30/70. In that way only minimum cash is tied down, and you can easily wait till handover to sell.

Let me know if you need any more advice on this.
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