SGD vs GBP UK Property Loan - Which is better?


UK Mortgage Home Loan - SG vs UK Bank - London Britain England Wales Scotland Northern Ireland - Expats Resident Non-Resident Individual Names Company Names - Interest only - Residential Commercial Property Loan

 

We are pleased to extend our UK property financing options to now fully cover all cities in London, England and the rest of the United Kingdom - Wales, Scotland and Northern Ireland. Let's take a comparision review of the features and benefits of SGD UK Property Loan vs GBP UK Property Loan.

 

UK Property Loan UK Bank SG Bank SG Bank
(GBP Loan) (GBP Loan) (SGD Loan)
1st yr >3.50% >3.35% >3.75%
2nd yr >3.50% >3.35% >3.75%
3rd yr >3.50% >3.35% >3.75%
Thereafter >3.50% >3.35% >3.75%
       
Cost of Fund Reference Bank of England Base Rate Bank's Cost of Fund Reference or LIBOR SIBOR
Eligibility Citizens / Singapore Permanent Residents / Resident and Non-Resident Foreigners. Citizens / Singapore Permanent Residents / Resident Foreigners. Citizens / Singapore Permanent Residents / Resident Foreigners.
Locations Whole of United Kingdom - 69 cities across London, England, Wales, Scotland and Northern Ireland. London zone 1 - 3  London zone 1 - 3 
Borrowers Individuals / Company Names Individuals Only Individuals Only
Property Type Residential / Commercial / Land and House Development Residential Residential
Purpose / Use Investment / Buy-to-let / Family or owner-occupation Investment / Buy-to-let only Investment / Buy-to-let only
Development  Completed / Completing within 3 months Completed / Under-Construction Completed / Under-Construction
Mortgage Repayments Interest Only Principal + Interest  Principal + Interest 
Financing Request New Purchase / Mortgage Refinancing / Equity Cash Out New Purchase / Mortgage Refinancing  New Purchase / Mortgage Refinancing 
Currency Exchange Risk No No Yes
Minimum Loan  > $450K GBP $200K GBP $300K SGD
Max Financing Quantum <65% <70% <70%

Advantages of UK Lenders

  • Competitive rates, based on prevailing cost of fund references.
  • Interest rate hike outlook for GBP is likely to remain subdue while SG cost of fund reference SIBOR which typically runs in parallel to Federal Reserve US interest rates are likely to increase further.
  • Application eligibility for UK lender is opened to Singapore citizens, Singapore permanent residents, expat foreigners and non-resident foreigners while lenders in Singapore are generally only receptive to applications received from Singapore Citizens and Permanent Residents. Lower quantum of finance and additional conditions could be impose for resident foreigners.
  • Offers broad spectrum of finance across the whole of United Kingdom vs limited classification of finance only in between London zone 1 to 3 as offered by the Singapore lenders.
  • Opened to finance under individual names, investment asset holding and operating companies in Singapore and United Kingdom.
  • Opened to finance residential and commercial properties in the whole of United Kingdom.
  • Interest-only repayments to reduce monthly instalment repayments and improve cash flow.
  • Applicable for new purchase, refinancing and additional equity cash out loan.
  • Given same currency pair between property asset and loan, there is no FX disparity for currency risk.
  • Not subjected to TDSR.
  • Purpose of use of property applicable for investment buy-to-let or family/owner occupation.

Advantages of SG Lenders

  • Competitive rates with lower bank margin spread offered.
  • Higher loan quantum offered of up to 70%.
  • Choice of currency for the loan in either GBP or SGD.
  • Ease of loan repayment in Singapore.
  • Applicable for under-construction properties.
  • Lower minimum loan amount requirements.
  • Lower bank processing fees.

Eligibility

  • Singapore Citizens
  • Singapore Permanent Residents
  • Singapore Resident Foreigners and Expats
  • International and Non-Singapore Resident Foreigners

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