Frequently Asked Questions
Buying a property abroad can be a daunting experience, especially for first-time buyers. Here are some of the most commonly asked questions that may assist you.
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| A. | • | Generally we allow customers to borrow up to five times their sole or joint basic annual salary. | |
| • | Maximum 70% (60% for Spain; 50% for Dubai) of purchase price or valuation price, whichever is lower. | ||
| • | For property in the USA, the maximum loan to value is 50% in California, Florida, Nevada and Oregon and 60% in other selected states. | ||
| • | Each case is taken on its individual merits. We can provide a decision in principle on receipt of a completed application form which is valid for 3 months – outlining exactly how much you could potentially borrow. |
A. Whilst we are only able to provide mortgages for properties in the countries we have listed, if you have an existing property in one of these locations we may be able to offer a refinance package which would release equity from your property for use on just about anything else – including purchase of a property in another country. For more information please contact us.
A: No, we do not finance commercial property of any description or land and other than in the case of selected developments in Dubai (and Singapore on a purely exceptional basis), we do not provide any form of construction finance or staged/progressive payments. Rather, we provide loans against completed, residential properties. So if you are buying a property off-plan, the funds would only be made available to you upon property completion.
If you are looking to buy a property in Dubai, we can arrange ‘staged payments’ where the loan funds are released in different stages while the property is being constructed, provided that payment schedule and proof of deposit is submitted to the Bank. To qualify for this, the property you are interested in must be on our list of approved developments. For more information please contact us.
If you are looking to buy a property in Dubai, we can arrange ‘staged payments’ where the loan funds are released in different stages while the property is being constructed, provided that payment schedule and proof of deposit is submitted to the Bank. To qualify for this, the property you are interested in must be on our list of approved developments. For more information please contact us.
A: In principle, yes. A tenancy or lease with a term of up to 12 months (one month for Portuguese property, 6 months for Spanish and 3 years for French property and 24 months for Hong Kong property) may be created without Lloyds TSB’s consent (see table below for details.) Tenancies or lets beyond this term require our formal, written authorisation. For more information please contact us.
A: Yes, however, an early repayment charge will be charged upon partial or full repayment during the first 3 years. For details, please refer to our Terms and Conditions
A: Our mortgages are granted in the local currency of the property location and, subject to criteria and availability, in the currency of the borrower's primary income. Borrowers, however, should be aware of the potential additional risks when choosing to fund the property purchases in a foreign currency.
When granting a mortgage we will issue an offer letter that details the agreed Loan to Value (LTV). This is expressed in percentage terms and reflects our requirement for the amount outstanding on the mortgage to be measured against the value of the property.
If mortgages are granted in a currency other than that of the location of the property, you run the risk that variations in foreign currency exchange rates may adversely affect the LTV ratio which means that in real terms the mortgage balance outstanding has increased in relation to the property value.
Should this situation occur we will require borrowers to restore the LTV ratio to that agreed at the outset by either reducing the mortgage balance or providing additional security, which is usually pledged funds or savings plans / life policies.
It is also possible to switch the currency of the loan to that of the property jurisdiction so as to remove the exchange rate risk, although it will also be necessary to restore the LTV ratio to the level originally agreed by one of the above methods. Once the loan currency has been switched into that of the property jurisdiction it cannot be subsequently switched to a foreign currency unless the LTV ratio is equal to or less than that agreed at the outset.
If you have any queries or require assistance, please contact our Customer Support Team in Hong Kong, during business hours (9.00am to 5.00pm Hong Kong time, GMT+8) on +852 2847 3008 or via email to CustomerSupport@LloydsTSB.com.hk.
When granting a mortgage we will issue an offer letter that details the agreed Loan to Value (LTV). This is expressed in percentage terms and reflects our requirement for the amount outstanding on the mortgage to be measured against the value of the property.
If mortgages are granted in a currency other than that of the location of the property, you run the risk that variations in foreign currency exchange rates may adversely affect the LTV ratio which means that in real terms the mortgage balance outstanding has increased in relation to the property value.
Should this situation occur we will require borrowers to restore the LTV ratio to that agreed at the outset by either reducing the mortgage balance or providing additional security, which is usually pledged funds or savings plans / life policies.
It is also possible to switch the currency of the loan to that of the property jurisdiction so as to remove the exchange rate risk, although it will also be necessary to restore the LTV ratio to the level originally agreed by one of the above methods. Once the loan currency has been switched into that of the property jurisdiction it cannot be subsequently switched to a foreign currency unless the LTV ratio is equal to or less than that agreed at the outset.
If you have any queries or require assistance, please contact our Customer Support Team in Hong Kong, during business hours (9.00am to 5.00pm Hong Kong time, GMT+8) on +852 2847 3008 or via email to CustomerSupport@LloydsTSB.com.hk.