In recent years, the British real estate market has attracted much attention. Many domestic investors have flocked to the UK to buy houses. However, due to insufficient understanding of the British real estate market, many people have encountered difficulties in the process of buying home loans.To this end, this article will briefly introduce the steps of UK home purchase loans to help investors better understand the process.
1. Appraisal Amount
Before buying a house, you need to evaluate your loan amount to determine what price range you can purchase. The amount you can borrow depends on several factors, such as property valuation, age, income, spending level, credit score, etc. The most important factor is annual income.Generally speaking, the loan amount available is 4-5 times the annual income.For example, if your annual income is 500,000 RMB, you can basically borrow 2 million RMB, which means that you can use leverage to leverage a property of about 4 million RMB or 400,000 pounds.
If the buyer does not know how to make an estimate, it is best to ask a professional and reliable house-hunting consultant. If the consultant can give you an estimate, there will basically be no problems.
2. Options
It is not enough to have a preliminary expectation for the loan. It is more important to understand your loan type. There is not much difference between domestic business loans, but in the UK, banks vary greatly and there are many types of products, so we need to choose the solution that suits us best and has the most advantages.
Several important parameters about the loan program: loan type, loan amount, loan term, repayment method, lending bank, loan product (including interest rate combination and fees), and other features of the loan product.Choosing different banks will determine different loan options. Chinese customers usually choose banks such as Bank of China, HSBC, UOB, Gatehouse, and Maybank.
When applying for a UK loan, it is very important to understand the role of a mortgage broker.These brokers deal with banks every day and are very familiar with each bank's products, policies and loan limits.By working with a good broker, you can quickly find the bank and plan that best suits you, saving a lot of time and energy.
3. Preparation materials
Identity proof: passport, visa, proof of address;
Income proof: salary details, salary card statement , employment certification letter, other bank card statements, tax payment certificate;
Credit type: personal credit report;
Capital type: deposit certificate, balance payment certificate;#{25 }
Every bank has different approval requirements. As long as your materials are in order, you can submit them and wait for the bank's approval notice.
I would like to remind everyone that when applying for a loan, you must prepare the required materials in advance. Because the approval speed of some banks is slow, in order to avoid delaying the progress of home purchase, it is recommended to start preparing materials and applying 6-12 months before handover, and wait for the bank's approval notice.
