I want to buy a property in Dubai but without selling my home in the UK.

Posted on 25 October 2007

Hi, I owe around £260k on my mortgage but my property with 7 beds, swimming pool bar, cinema, etc (i built the house out my saving) has been valued around £800-900K by a local estate agent, but i now want to buy a property in Dubai. How would this be possible as i already own a property in the UK and don't want to sell my base (home) in the UK can you help me?

Philip

Dear Philip,

You can raise the capital against your own home by just increasing the mortgage. You can either remortgage to another lender or ask your current lender to increase your loan (this is known as a Further Advance).  You can normally go to around 4 x your income, so if you are earning say £100,000, your total debt would be £400,000 so you could take the left over £140,000 to Dubai to buy.  Alternatively, if you intend to let out this house and move permanently to Dubai, you can remortgage this property as a Buy-to-let, which means that the rental income pays the mortgage and your own income, broadly speaking, is not used.

Depending on your intentions it is also possible to just raise a little money here just to use as a deposit, and get the rest as a mortgage on the property in Dubai.  Charcol now has an office and arranges mortgages in Dubai. If you want to call through to the usual 0800 3585560 number, we will put you through.

Regards,

Katie.

Category: Buying abroad, Foreign Currency or foreign tracking rate mortgages

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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