How To Finance A Property In London With A Singapore Bank

By Justin Koh / Redbrick.sg | September 13, 2018 12:30 PM SGT
In recent years, Singaporeans have been one of the biggest buyers of London properties, favouring new-built and luxury flats.
Due to its stable residential development and a naturally competitive market, London continues to be a safe haven for smart property investors. Despite recent challenges and Brexit, investor sentiment towards real estate investment still remains positive.
Since 2012, Singapore banks have been growing their overseas properties portfolio, particularly in London. For investors who want to invest in London properties, they can take up a London property loan with a Singapore bank.
So, why is it advisable to go through a Singapore bank, and what are the things to consider when taking up a home loan?
What are the requirements to take up a loan?
Applicants can choose to take up the financing in either Singapore Dollars (SGD) or British Pound Sterling (GBP).
What are the documents required?
  • 1. A copy of the Property Purchase Agreement.
  • 2. Loan statement from the existing bank or financial institution for the latest 12 months for refinancing.
  • 3. Tenancy agreement if applicable.
  • 4. Income documents:
  • For salaried employees, latest tax assessment and latest CPF statement
  • For self-employed, latest 2 years of income tax assessment.
How you can benefit from financing in SGD?
One of the main advantages for applicants working in Singapore and earning in SGD, financing a London property investment is in the same currency as your income. Essentially, this means:
  • 1. Lower interest rates as compared to taking up a loan in the UK
  • 2. Faster approval as services received are from a local bank in Singapore
  • 3. Transparent loan rates with SGD loans pegged to inter-bank rates, like the 3 month SIBOR (e.g. 3 Month SIBOR + 2.5%)
  • 4. Rates offered are throughout the entire loan tenor hence no need to do refinancing
  • 5. Enjoy significant savings from one-time admin cost, legal...