Home in Dubai – UK mortgages to buy Dubai propert

Before searching property for sale in Dubai you must think about how to finance the purchase of your home in Dubai. You should always have a mortgage in place before you start looking so you know exactly what you can afford. When buying Dubai property you may find that a UK mortgage is the best way of securing finance.

Dubai property bought with a UK mortgage

A bank will only lend money against a property in the same country. Therefore, you would need to re-mortgage your home in the UK to release equity for property for sale in Dubai. This obviously puts your main home at risk if you were to default on the loan.

There are advantages to funding the purchase of property for sale in Dubai in this way. For example:

• If you already have a UK mortgage then there will be no legal or Land Registry fees if you obtain a further advance. There may not even be a bank arrangement fee.
• Re-mortgaging to borrow a larger amount can sometimes result in paying a lower interest rate than you a currently paying.
• There is a more comprehensive range of mortgage products and greater flexibility.
• Interest rates are lower in the UK than in Dubai.
• You may be able to raise more money this way than with a Dubai mortgage on your home in Dubai.

UK banks in Dubai offering mortgages on properties for sale in Dubai

There are also UK banks with Dubai branches that have introduced more features of UK mortgages to the Dubai property sector. They may also offer lower interest rates than local banks. Your mortgage will be secured on the Dubai property and, whatever happens, your UK assets will be safe. There may be other advantages and conveniences to going for a lender affiliated with your bank at home.

Dubai mortgages for your home in Dubai

Interest rates in Dubai are higher than UK rates and Dubai banks will typically loan a lower percentage of the cost of the Dubai property.A Dubai mortgage may simplify inheritance issues when the owner of Dubai property dies.

If you are going to repay the mortgage from your UK earnings you will be exposed to major currency risk. This can dwarf the potential savings on interest payments because of wild fluctuations of Sterling against the dirham.

Your individual circumstances will dictate whether a UK or Dubai mortgage will be best for the property for sale in Dubai you are looking for. You must remember that taking a mortgage represents a huge financial commitment and think very carefully about which option is best when buying Dubai property. The correct decision could net you thousands of pounds in savings so remember this when buying a home in Dubai.