SGD vs GBP UK Property Loan - Which is better? (Updated June 2022)
(Updated June 2022)
We are very pleased to extend our UK home financing options to now fully cover all residential properties within London zone 1 - 7. Let's take a comparision review of the features and benefits of UK Lender GBP Home Loan vs SG Lender GBP Home Loan vs SG Lender SGD UK Home Loan.
UK Home Loans | UK Bank | SG Bank | SG Bank |
(GBP Loan) | (GBP Loan) | (SGD Loan) | |
1st yr | >3.18% | >4.52% | >3.45% |
2nd yr | >3.18% | >4.52% | >3.45% |
3rd yr | >3.18% | >4.52% | >3.45% |
Thereafter | >3.18% | >4.52% | >3.45% |
Cost of Fund Reference | Bank of England SONIA | SG Bank GBP Cost of Fund | SORA |
Eligibility (Resident & non-resident foreigners) |
Singapore * Korean (subject to local regulatory considerations) |
Singapore Citizens & Singapore Permanent Residents | Singapore Citizens & Singapore Permanent Residents |
Locations | London zone 1 - 7 | London zone 1 - 2 | London zone 1 - 2 |
Borrowers | Individual names only | Individual names only | Individual names only |
Property Type | Residential properties only | Residential properties only | Residential properties only |
Purpose / Use | Investment / Buy-to-let / Children's education stay | Investment / Buy-to-let only | Investment / Buy-to-let only |
Development | Completed / Under-Construction | Under-Construction | Under-Construction |
Mortgage Repayments | Principal + Interest, Hybrid P+I, Interest Only | Principal + Interest | Principal + Interest |
Financing Request | New Purchase (Resale & Newly Build) / Mortgage Refinancing / Equity Cash Out | New Purchase (Under-construction) | New Purchase (Under-construction) |
Currency Exchange Risk | No | No | Yes |
Minimum Loan | > $300K GBP | < $200K GBP | < $300K SGD |
Max Financing Quantum | Up to 75% | Up to 70% | Up to 60% |
Processing Fee | 1% of the loan amount | GBP 500 - 1000 | Nil |
Advantages of UK Lenders
- Better rates!
- Full lending coverage for all residential properties within London from zone 1 to 7.
- Higher loan-to-value ratio of up to 75% loan.
- Transparent cost of fund reference to Bank of England SONIA rate.
- Interest-only option available.
- Applicable for cash out equity loan on your property.
- Applicable for resale completed purchases. SG lenders typically have issues meeting the turnarond timeline for resale purchases and hence are often limited down to only newly build mortgages.
- Applicable also for Singaporeans, Singapore Permanent Reidents and Foreigners residing and not residing in Singapore.
- Not subjected to TDSR, UK lending requirements apply.
- Use of property applicable for investment buy-to-let or children's stay while studying in London.
Advantages of SG Lenders
- Choice of SGD loan.
- Loan repayment in Singapore to a Singapore bank.
- Lower bank processing fees.
Eligibility
- Singapore Citizens
- Singapore Permanent Residents
- Foreigners