SGD vs GBP UK Property Loan - Which is better?
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 | >3.25% | >3.25% | >3.75% |
| 2nd yr | >3.25% | >3.25% | >3.75% |
| 3rd yr | >3.25% | >3.25% | >3.75% |
| Thereafter | >3.25% | >3.25% | >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 | > $400K GBP | $200K GBP | $300K SGD |
| Max Financing Quantum | <65% | <70% | <70% |
Advantages of UK Lenders
- Lower Interest 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.
- Ease of repayment in Singapore.
- Applicable for under-construction properties.
- Lower minimum loan requirement.
- Lower bank processing fees.
- Higher loan quantum for Singaporean and Singapore Permanent Residents.
- Option to take up loan in Singapore dollars based on individual’s preference. Example. Earn Singapore dollars for employment and pay mortgage in Singapore dollars.
Eligibility
- Singapore Citizens
- Singapore Permanent Residents
- Singapore Resident Foreigners and Expats
- International and Non-Singapore Resident Foreigners