How do people use financial leverage to purchase properties in UK?

How do people use financial leverage to purchase properties in UK?

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How do people use financial leverage to purchase properties in UK?

Nowadays, as more and more Chinese people begin to go abroad and invest overseas properties, the real estate market, with its unique cultural charm and excellent performance after the financial crisis, has become increasingly popular in China and all over the world.

A batch of domestic investment clients arrive with money, site location, see the building, pay the deposit, and sign the contract. They are quite busy in investing, however, it seems that few people are concerned about how to meet their investment needs through financial leverage and mortgage loans.

For the most of people, if they can afford the property, they can’t even think about using the mortgage from British banks.

The answer is yes.

The financial system in Britain has experienced hundreds of years evolution and it has developed to a fairly advanced and perfect level. Under the strict market supervision system, various financial products developed in an orderly and vigorous way. For any financial needs, solutions and products will always be found in this system.

Mortgage product is also not exceptional. Although the majority of banks are reluctant to dabble in mortgage loans for overseas investors, there are still some banks and financial firms willing to rely on certain selected channel, that is professional financial service intermediary, to obtain the customers who meet their requirements. Ocean-Tide (UK) Limited is a professional financial service company authorized by FCA which is the regulator of the UK financial industry.

With the help of professional financial service companies, a growing number of Chinese investors have managed to get British mortgages. Most of them are successful businessmen and senior white-collar workers in Chinese companies.

So what are the requirements for UK loans and how to apply for it?

Unlike the mortgage applications in China, lenders in UK mainly assess the cash flows of applicants rather than their net worth. Instead of using domestic assets as collateral, banks use the property to be purchased for the mortgage.

How to calculate the cash flow?

The cash flow is the funds movement of the applicant’s income minus the daily expenses which include the repayment of the existing debt. According to the monthly net income, lenders calculate whether the net mortgage repayment is reasonable. Of course, the rental income of investment properties will also be considered. However, personal incomes are the main reference. Generally, the loan amount is between 4 and 5 times of the personal annual pre-tax income and each loan is about 60-70% of the property income. Some banks will also consider the rental income of their clients’ domestic properties when doing the income assessments.

What kind of materials are needed?

-Passport

-The payslips for the last three months.

-The bank transaction records for the last three months.

-The deposit certificate for more than three months.

-Annual income certificate (provided by the employer to the bank)

-Annual tax certificate, etc.

-For the enterprise owner or partner, the company’s audit reports for the last three years are also needed.

-What are the specific procedures like?

  1. In the beginning stage of deciding to purchase a property in UK, clients should contact the bank or professional financial service company for initial consultation to determine the amount of the mortgage. Then generally, you will need to obtain the AIP from the bank which can determine the approximate amount that can be used to buy a property, at the same time, also lay the foundation for next stage’s choosing the property and bid. This is because when clients purchase a property in the UK, if the mortgage is needed, most housing developers or agents will ask for the AIP from the bank.
  2. After AIP is received, clients can prepare materials and see the property .
  3. After the property is decided, the loan application can be officially submitted. All application materials should be submitted to the bank, including the application form and the auxiliary materials mentioned above.
  4. At the same time these materials are evaluated and reviewed, banks will conduct quality inspection for the property. If all is satisfied, they will issue a loan approval letter. The loan is completed successfully.
  5. The lawyer completes the document review and signature.
  6. Exchange of contracts.

Finish the contract and get the keys.

The content above has been prepared for informational purpose only, and is not intended to provide, and should not be relied on for financial advice.

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It is our intention to provide you with a high level of customer service at all times.  If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service www.financial-ombudsman.org.uk

Ocean Tide Wealth Limited T/A Oceantide Wealth is an Appointed Representative of Connect IFA Ltd 441505 which is Authorised and Regulated by the Financial Conduct Authority. The FCA does not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. Not all services we offer are regulated by the FCA. Your home may be repossessed if you do not keep up repayments on your mortgage. 

There will be a fee for mortgage advice, the precise amount will depend upon your circumstances but we estimate that it will be £500. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Changes in the exchange rate may increase the sterling equivalent of your debt.

We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.For sales of non-investment insurance products such as life and critical illness insurance, we are remunerated by commission from the insurance provider. Commission will normally be based on a percentage of your premium for a set period of time.

Customer Privacy

Oceantide Wealth Privacy Notice

Oceantide Wealth are committed to protecting your privacy. This policy statement, together with any document referred to within, sets out the basis on which we will use the personal information you supply to us directly yourself or supplied to us by a third party.  Oceantide Wealth is responsible for the processing of the personal information you supply and is registered with the Information Commissioners Office under the UK Data Protection act 1998, registration number ZA756260.

Website

We have structured our website so that you can visit without identifying yourself or revealing any personal information.

If you review or download information from the website, this information is tracked to enable us to provide you with tailored information and to give us information about your use of our website. This action will not personally identify you.

Should you wish to complete a contact or enquiry form on the website or through our connected portals, we collect and store the personal information supplied to us via secure servers to enable us to fulfil your request.

Any personal information you chose to disclose via the website or portals will be processed in accordance with this privacy notice.

What information do we collect?

To arrange a mortgage, loan or other plan or service for you, we will need to collect a wide range of personal data and financial related information. Our UK based team will only collect information that is pertinent to the service we provide and will hold this information only for as long as necessary.

We will also collect credit or debit card details to make payments for Oceantide Wealth services and to pass to relevant parties such as lenders and surveyors. This information will not be retained after payment has been made.

We will retain and process your personal information based on our ‘Terms of Business’ contract with you, our statutory and legal obligations, our regulatory requirements and our legitimate business interests.

How is the information collected?

We collect information via a variety of means which include website forms, telephone calls, email, text messages, social media, post, fax and face to face meetings. We may also monitor and record our telephone conversations with you.

The information may be collected directly by Oceantide Wealth and its staff.

How is the information used?

Oceantide Wealth will use personal data received to process your request for a mortgage, loan or other plan or service on your behalf. You may advise us at any time should you no longer wish us to use your data. We will use the information in several ways to improve how we support our customers, which includes but is not limited to:

  • Letting you know about changes to our products and services.
  • Confirmation of your identity.
  • Training of our staff and fraud Investigation and prevention.
  • Confirmation of the documents and information you provide to us.
  • Keeping our records up to date and complying with regulatory and legal obligations.
  • Administration and review of the mortgages, finance and products we have arranged for you.
  • Helping us to assess your needs for protection plans in connection with your borrowing.
  • Conducting surveys to help us improve our service.

Who will your information be shared with?

To arrange a mortgage, loan or other plan or service we will need to share your personal data with relevant third parties. These third parties include mortgage lenders, product providers, surveyors, solicitors and other parties that relate to your applications.

When we proceed with a mortgage, loan or other plan or service for you and your data is shared with a lender or provider, we recommend you also read their Privacy Notice in conjunction with ours. This can be found on the lenders or providers website or our central page here: https://cmortgages.co.uk/lenderprivacy/

As an Appointed Representative of Connect IFA Ltd, information about yourself will be shared with Connect IFA Ltd who are our Network. Connect IFA Ltd assist us with the processing your application as well as for compliance oversight purposes.

If your request for services has come from an introducer of business to Oceantide Wealth, we may share limited information with the introducer for the purposes of keeping them informed as to how your application is progressing.

We use third party software systems including cloud-based storage, to help us to manage mortgage, loan and product applications and to process and verify the personal information you supply to us. All software suppliers store any data in the UK and are subject to UK regulations including the UK Data Protection Regulations and are obliged to keep your details securely and use them only to fulfil the contracted service.

Marketing

We will seek your explicit consent to provide you with general market news and updates and to inform you of any products and services offered by Oceantide Wealth and its associated companies that are not connected with your specific mortgage, loan or other plan or service. If you use a service offered by Oceantide Wealth , you will not automatically be opted in to marketing without your consent. We will not provide your personal data to any unconnected third party in connection with marketing.

We will obtain explicit consent from you either verbally, via our website, via meetings face to face including shows and events, by email, or by completion of a consent form and will keep a record of your consent.

Marketing may include emails, telephone calls, social media and postal marketing. You can advise us of your preferences on how you would like us to provide marketing and the marketing content that is of most interest to you. You may update your preferences at anytime and you may also withdraw your consent at anytime.

Changes to our Privacy Policy

It may be necessary to update this privacy policy from time to time to meet legal, regulatory and commercial requirements. Please visit this page from time to time and take note of any changes. Any personal data collected prior to any change will not be affected by the change without your permission.

On the 25th May 2018, The Data Protection Act 1998 was superseded by The Data Protection Act 2018 supplemented by GDPR. This Privacy Notice sets out most of your rights under the new act but may be updated further if regulation changes in the future.

Changes of ownership

Oceantide Wealth may from time to time sell or transfer the control of the company. Any personal data supplied by you where relevant to the part of the business being sold or transferred will be transferred to the new owner or controlling party and will continue to be used under the terms of this policy for the purposes that the personal data was originally supplied to us.

Access

You have a right to access any personal information we hold about you. To request access or for any questions about this privacy policy please contact: Oceantide Wealth, 30 Crown Place EC2A 3EB Jenny@oceantidewealth.com

Privacy notice
Legals

Oceantide Wealth is a trading style of Ocean Tide Wealth Limited, which  is an Appointed Representative of Connect IFA Ltd 441505 which is Authorised and Regulated by the Financial Conduct Authority.Registered Address: 30 Crown Place, London EC2A 4EB

Company Registration Number: 11910858

Place of Registration: England and Wales

Mortgage availability depends upon your circumstances. Commercial mortgages and buy-to-let and offshore mortgages are not regulated by the FCA.

Legals
Contact Us：
Phone:

London Office 020 7965 4600

Email:

Jenny@oceantidefinance.com

Address:

London Office: 30 Crown Place, London EC2A 4EB