The biggest advantage which promises appeal to the UK banks, is the interest rate, which is maintained at a really low level for decades. In 2014 the National Bank of England base rate was about 3-5%. If we draw an analogy with CIS countries, one of the largest investment groups, the rate starts from 8.25% and goes beyond up to 25% and even further. Naturally, taking a loan at one of the British banks is a significantly more profitable opportunity.
Importantly, non-residents of the United Kingdom take advantage of loyal conditions for obtaining the loan of maximum amount. Today, they can count on the issuance of 70% of the total cost of the acquired property, although lenders at the same time put forward a number of conditions. For example, foreign investors can press for a reduced interest rate, provided that they will make an additional amount of assets in a particular bank. These proposals are formed by the interest of the English banking services to co-operate with their clients for as long as possible.
To date, in the banking system a common practice is the issuance of mortgage loans for a period of 5 years and the maximum period for repayment capped at 25 years. The procedure for registration of mortgage loan is generally similar to the stages of which are provided in the issuance of mortgage banks across the globe. The first stage of the procedure for obtaining public funding requires identification. To do this, the banking institution will request your passport and proof of address. For more convincing, you can submit a statement for utility bills.
Next, the client is required to provide information that would convince service bank in financial solvency of the borrower, ie the ability to repay the initial payment. To do this, you must submit an extract from the personal account or else provide a letter, certified by the bank manager, whose client is the applicant for a mortgage. To prepare for a purchase more diligently you should better team up with experienced banking and conveyance solicitors.
As for confirming existing assets, a statement which allows you to check the financial viability is necessary to provide. To do this, provide statements on the stocks held by the real estate, passive capital, for example, in the case of shareholdings, statements about the presence of works of art, etc.
One of the crucial points that defines a successful decision or denial of a mortgage is the document on obligations to third parties – Assets and Liabilities Statement. This checks all the customer’s credit history: whether there were any delays in payments and, most importantly, whether the loans are currently being faced. In some cases, bank employees check the internal database, if a customer raises doubts as to the solvency.