Why Singapore’s buy-to-let London mortgages can shrink your home loan bills?

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James, a UK citizen, living and working in London, travel frequently to Singapore for both work and leisure. He has intentions to buy a London property in zone 1. The estimated purchase price of the property is about $500,000 pounds and he intends to take up a mortgage of up to 75% loan-to-value ratio financing.

Let’s compare an offer between Singapore’s London Home Loan vs a leading bank offer in UK for buy-to-let mortgages.


London Home Loans

(Lenders in Singapore)


London Home Loans

(Lenders in London)

Types of Mortgage Buy to Let Tracker Rate Mortgage   Buy to Let Tracker Rate Mortgage
Base Currency: SGD   GBP
Tracker Rate Reference: Singapore Interbank Borrowing Offer Rate   Bank of England Base Rate
Interest Rate Year 1: 3 months Sibor + 2.25% = ~2.9%   BOEBR + 2.69% = ~3.19%
Interest Rate Year 2: 3 months Sibor + 2.25% = ~2.9%   BOEBR + 2.69% = ~3.19%
Interest Rate Thereafter: 3 months Sibor + 2.25% = ~2.9% throughout   BOEBR + 4.49% = ~4.99% thereafter
Tracker Rate: 0.4%   0.5%
Fixed Rate Options: No   Yes
Max Quantum of Financing 75%   75%
Currency Exchange Risk: Yes   No
Lender's Establishment Fee: Nil   $999 GBP
Interest Only Option: No   Yes
Financing Location: London zone 1 - 4   Countrywide
Minimum Loan: $300,000 SGD equalivalent   $50,000 GBP
Purpose: New purchase / Remortgaging / Cash out Equity Term Loan   New purchase / Remortgaging
Loan Tenure Up to 30 years or max age 70   Up to 25 years or max age 75
Bank Repayment: Bank account in Singapore   Bank account in London


Advantages of Singapore’s London Home Loans

  • Lower interest rates.
  • Rates offered are throughout the entire tenor of the loan. Perpetual long term interest savings thereafter.
  • Significant savings from lender’s set up cost, legal and valuation without having to remortgage your loan every couple of years once your promotional rate ends.
  • Traced to publicly publish interbank rate SIBOR.
  • Savings from no establishment fee for SGD finance.
  • Applicable for additional cash out equity term loan for remortgaging offers.


Disadvantage of Singapore’s London Home Loans

  • No fixed rate options
  • Borrower may be subjected to foreign exchange risk as base currency of lending is in SGD. A strong depreciation of GBP/SGD (eg. 2.07 to 1.98) may result in a margin call event. Likewise, a rise in GBP/SGD (eg. 2.07 to 2.17) may allow a borrower to accumulate unrealised profit from the increase in FX rate.
  • Financing locations are restricted to London zone 1 - 4.
  • Quantum of financing may be lower than 75%, subject to property location and borrower’s profile.
  • Higher minimum loan amount required of at least $300,000 SGD equivalent.


  • Singapore Citizens
  • Singapore Permanent Residents
  • UK applicants / foreigners on employment pass living and working in Singapore
  • UK applicants / International applicants not living and working in Singapore subject to lender’s review & approval.

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