In recent years, more and more domestic residents have come to live in the UK for work, education, retirement and other reasons, and are interested in buying their own properties. Buying a house in the UK generally requires a loan, but home loans in the UK are very different from those in China. Many people are not familiar with the basic knowledge of home loans in the UK, or apply domestic thinking to loans in the UK, which ultimately leads to problems. Therefore, today the editor of British Real Estate will briefly introduce the basic common sense of British home loans.
1. What is the maximum loan amount?
In the UK, home loans are mainly divided into two categories, namely owner-occupied mortgage loans and investment rental mortgage loans. It should be noted that the loan amounts for these two loan types are different. The maximum loan amount for an owner-occupied mortgage loan is 95% of the total price of the house, while the maximum loan amount for an investment rental mortgage loan is 75% of the total price of the house.
2. Is the repayment method to choose repayment of principal and interest or only interest during the loan period?
It is recommended that buyers choose to repay only interest during the loan period. This is one of the wisest choices. one.Because loan interest rates in the UK are relatively low, buyers can use their funds for secondary investment, such as purchasing insurance, overseas bonds, funds or financial products, thereby increasing their wealth accumulation.
3. Loan term
The loan term should be determined based on the applicant's financial situation and the selected loan bank and product. Generally speaking, the loan period is 25 to 35 years. The longest loan period of common banks such as HSBC and Bank of China is 25 years, and the applicant is not over 75 years old; while the loan period of UOB is up to 35 years. Applicants must not exceed retirement age, that is, women must not exceed 55 years old and men must not exceed 60 years of age.#{13 }
4. How far in advance do you need to prepare for a loan?
To be on the safe side, the British real estate editor recommends starting to prepare the information required for a home loan one year in advance, so that you can have enough time to supplement it when problems arise. When choosing a home loan, it is best to enlist the help of a mortgage broker to save time and effort.
#{18 } Therefore, regarding the loan preparation period, you must contact professionals in advance to prepare. Otherwise, it will be a small matter to miss the stamp duty holiday, but it will be a big thing to delay the purchase of a house.#{ 19}
