Caribbean: Mortgages

Caribbean lending criteria

Do I qualify for a Caribbean mortgage?

To qualify for a mortgage in the Caribbean, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete the application form, and Conti won’t charge you for this service.

How much can I borrow?

• Calculation based on the valuation or purchase price, whichever is the lower

• Up to 70% of LTV available for house purchase, remortgage or home improvements

• Based on joint net “take home” pay, where joint income is applicable

• Existing liabilities, e.g. mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Caribbean mortgage payments. All this must not exceed 40% of your monthly net income

What evidence of income do I need?

• Your last three month’s payslips
• Your latest P60 and/or Employers Reference
• Your last 6 month’s personal bank statements

Also required:
• Credit Report
• Bank reference, from a bank where you have been a customer for two years.

Example mortgage payments

If, for example, your net joint monthly income is £2,500, 40% of this equates to £1000. If your only liability is your mortgage payment, of say £300, this would leave a balance of £700 for your Caribbean mortgage repayment

What types of Caribbean mortgages are available?

For our latest rates and to see the different types of Caribbean mortgages on offer, please visit our website or speak to one of our advisers.

• Loans are available up to 70% of the property’s value or purchase price, whichever is lower.
• The maximum term of any mortgage is 20 years, this varies on the type of loan. Loans up to age 65/70 available, depending on the island and if employed/self employed.
• Repayment Mortgages Only
• The minimum loan you can take out is US $500,000

Essential information for buying properties in the Caribbean

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

• It is of paramount importance to seek independent advice from an overseas solicitor.

• You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender.

• You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a Caribbean property. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the properties purchase price.

• Before signing the sales contract, the bank will require a copy of this document to be forwarded with the relevant application form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding.

• Please be aware that the solicitor or notary may be incorporating costs for assigning the mortgage within his charges, and you should establish the actual cost before proceeding with a loan application.

• Properties can be purchased either individually, in joint names or in the name of an Offshore Company. For advice regarding whether to purchase under an Offshore Company, independent legal advice should always be sought.

© Conti Financial Services Limited 2008

This article is reproduced with the kind permission of Conti Financial Services Limited.

For information and advice on overseas mortgages and residential finance in over 30 countries, contact Conti Financial Services Ltd on www.mortgagesoverseas.com