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Offshore Buy to Let Mortgages

What is an offshore mortgage?

An offshore mortgage is a is just a regular mortgage in a different package, designed to be lent to an offshore vehicle ie. a company based outside of the UK. The loan can be originated from the UK or an offshore jurisdiction depending on the locations available from any particular lender. Offshore mortgages are available for Buy To let properties, and for Main Residences (regulated loans).

Where offshore?

Where exactly will lenders lend? this is something that changes every now and then with the ever-developing regulations within the banking industry. Almost all lenders that provide offshore mortgages will be happy to lend to many of the British Overseas Territories and Crown dependencies (some former) including;

  • Guernsey
  • Isle of Man
  • Jersey
  • British Virgin Islands (BVI)
  • Hong Kong

Other jurisdictions that often request an offshore mortgage include; Bahamas, Belize, Cayman Islands, Cook Islands, Gibralter, Luxembourg, Marshall Islands, Mauritius, Nevis, Turks and Caicos Islands.

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0203 651 5053 or finance@belgraviapf.co.uk

Offshore Mortgage Rates

Often an offshore mortgage is priced slightly higher (ever so slightly) than a regular mortgage, this is to take into account of the higher burden of underwriting, and compliance time that needs to be spent to close, and then maintain the loan.

Rates tend to start from around 1.5% margins for main residence mortgages, and from 2% margins for investment properties, banks arrangement fees vary generally from 0.50-1.50%. Margins vary depending on the lender, the client risk profile, jurisdiction, loan to value, loan amount and various other factors. Margins are normally quoted above Bank of England Base rate (BOEBR), 1 month libor or 3 month libor rate.

Why an Offshore Mortgage?

Asset protection and diversification plays a large part is why a property may be held within an offshore vehicle. Tax planning, be it for income or inheritance planning may be another reason why property is structured via an offshore company.

Normally requested for non UK registered companies, LLPs, trusts,  or non UK nationals and expatriates living outside of the UK. Belgravia Property Finance source mortgage finance from a wide variety of lenders for this purpose, the majority of lenders are non UK based, although many UK lenders do lend to offshore companies and non UK residents. Rates are highly competitive with those in the UK, although finance is more readily available for mortgages in excess of £1m.

Offshore Vs Overseas Mortgage

Whats the difference? An offshore mortgage, is as described above, a mortgage designed to be lent normally for UK property, but via an investment vehicle, normally a company based in a country other than the UK.

An Overseas Mortgage is a mortgage that is originated in another country and for property in the same country. Belgravia Property Finance also offer overseas mortgages in certain countries, you can read more about that on our dedicated page.

We also offer Development LoansBridging Loans, Mezzanine FinanceExpat Buy to Let Mortgages and Limited Company Buy to Let Mortgages.

For further information on any of the products that we offer, or to discuss your funding requirements please contact us on;

0203 651 5053 or finance@belgraviapf.co.uk

 

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