Advice - expat mortgage

[expat mortgage]

Hello, I've heard that expat mortgages attract low interest rates - I've 2 properties in the UK that I would like remortgage to take advantage of this - has anyone else done this before and also with which bank.

Thanks in advance

[cmdsea]

The interest rates are only lower if you switch the currency not because you are an expat.!

I currently have 9 mortgages with Lloyds TSB paying between a high of 6.5% for Stg loans and 2.47% for Sg$

[UhHuh]

Good for you

[SLC]

 Just a word of warning. If you are Australian and are looking to get an expat mortgage in Singapore, I strongly suggest that you avoid National Australia Bank. Utterly hopeless! They took three months to get a valuation for us before they would could produce a letter of offer. The service/communication is confused and slow. Do yourself a favour and go to ANZ instead.

[Can lah]

To OP.

You can get an 'expat' mortgage here. Most banks will finance property purchases overseas, you need a 35% deposit typically. The saving comes in the low SIBOR rates which your mortgage would be pegged to. Though you naturally have exposure on FX, e.g rises or falls in the currency of the country you own the property in will positively or negatively impact the value of your property asset relative to your SGD mortgage.

also keep in mind that SIBOR is unlikely to stay this low for too long, inflation in Singapore is a big issue - regardless of what the 'offical' figures might say.

Just my opinion - but i believe the Singapore economy is a huge white elephant, primed for a big crash, their pursuit of artifically low interest rates is in line with the Greenspan model -and we all know how that has ended.

There is a lag factor in Asia, but the signs are there and I believe the pain is only just beginning for Singapore. We will find out if i'm right over the next 12 months!

[buy a property in china]

anyone know if I can buy a property in China (beijing) by applying a bank loan in singapore in S$?

thanks.

[working mumsy]

As an example,  I took out a "expat mortgage" 18 months ago here in singapore for a property bought in Europe. There were hefty fees tagged to the mortgage  - about 5000 euros i think. Compare this to a UK mortgage - the uk mortgage wins on this front.

The int. rate paid here in Singapore started at about 5% and has gradually fallen to just over 2%. This has been good - however with the BOE base rate at .5% , I think the repayments would work out cheaper in sterling. This is good if you have the means to repay in sterling e.g rental income in pounds.

So look at both options first before you automatically go along the expat mortgage route. Especially check out the costs assosciated with the mortgage if you take it out here in singapore.

Llloys TSB has a currency switching facility which can be useful if you can work out how to use it to its advantage. I'm looking at it right now (due to the low BOE rates) but am struggling to see how it benefits me in terms of repaying the capital early.  Need help here !

[pigman]

Agree NAB here are useless.