UK residents buying property in Dubai can now arrange their mortgage in the UK but advisers have war...
UK residents buying property in Dubai can now arrange their mortgage in the UK but advisers have warned they could get a better deal locally.
Mortgage broker John Charcol has set up a deal with the National Bank of Dubai which allows UK borrowers to arrange a mortgage in dirhams, the local currency, once the mortgage has undergone processing in the UK.
The mortgage service is targeted at UK residents wishing to buy holiday homes or buy-to-let investments and uses the Newcastle Building Society as a third party processor. Walter Avrili, product director at John Charcol, said: "The big problem buyers have encountered is that both the local banks, such as the National Bank of Dubai, and the subsidiaries of major banking corporations, such as Lloyds TSB, do not have the systems we use in the UK to translate if someone can afford a mortgage. Not only do they not have the facilities to check people out but they don't understand the way British residents expect a mortgage lender to work. We are enabling people to fast-track so they don't have the hassle of a foreign process."
Tim Searle, director of Dubai-based financial advisory firm Globaleye, agreed it was difficult to arrange a mortgage from the UK but said there were alternatives. His own firm services many enquiries from the UK and Europe. Searle said: "We, and many others based out here, can arrange 100% finance. We have tie-ups with all the banks. I am surprised John Charcol, as a broker, is pegging with one lender here when the market demands as many potential local and international solutions to get the job done."
Ashley Clark, director of Needanadviser.com, said: "I would suggest you could obtain a more competitive product if you go to Dubai yourself. There is a premium to be paid for the ease of dealing with somebody in this country and having the protection of a UK based financial services company."
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