Buying UK property from loan in Thailand

[Peachplum]

I have been trying to buy a property in the UK using an international mortgage broker and have faced lots of obstacles. The most recent being that I do not have a UK bank account and getting one offshore requires a minimum balance and/or annual income that I don't have.

What I am now wondering is whether or not it is possible to use a loan (not a mortgage) from a Thai bank to buy a property in cash in the UK. 

The loan would be in my husband's name in Thailand (he is Thai) and the property in the UK would be in my name. It would be a transfer of about 9 million baht. Can you transfer that amount of money? Is that legal? Any advice? 

[sometimewoodworker]

4 hours ago, Peachplum said:

What I am now wondering is whether or not it is possible to use a loan (not a mortgage) from a Thai bank to buy a property in cash in the UK. 

While it may be possible it is not sensible. You will have the foreign exchange risk which is a complete gamble. Not to mention how are you going to get a 9million Baht unsecured loan at any reasonable interest rate, you then have the interesting job of trying to find a way to transfer that much out of Thailand. 

[digger70]

Major issue I think,,, getting a Loan in Thailand and than The might think that you  disappear to the UK and don't pay the Loan back ,,,

[KhaoYai]

40 minutes ago, digger70 said:

Major issue I think,,, getting a Loan in Thailand and than The might think that you  disappear to the UK and don't pay the Loan back ,,,

No idea on whether this is possible or not but if it is, the lender will certainly hold the title and foreclose if the borrower doesn't pay.

[Fairynuff]

My opinion......you’re on a road to nowhere

[baansgr]

With loan interest rates at 9% in Thailand and very hefty up front insurance premiums, interest alone would be madness and not even covered by rental income.... That's if you could even obtain a loan which without income from hubby,  and tax payments is most unlikely 

[sawadee1947]

4 hours ago, baansgr said:

With loan interest rates at 9% in Thailand and very hefty up front insurance premiums, interest alone would be madness and not even covered by rental income.... That's if you could even obtain a loan which without income from hubby,  and tax payments is most unlikely 

Also don't forget the risky times of uncertainty of the outcome of Brexit deals. Property prices might drop. Who knows. Even UK banks are very reluctant in giving loans unless you show 60% of own means. 

[Peachplum]

On 7/21/2018 at 2:23 PM, sometimewoodworker said:

While it may be possible it is not sensible. You will have the foreign exchange risk which is a complete gamble. Not to mention how are you going to get a 9million Baht unsecured loan at any reasonable interest rate, you then have the interesting job of trying to find a way to transfer that much out of Thailand. 

It would not be an unsecured loan. We have a lot of assets in Thailand and my husband has a good income.

[Peachplum]

13 hours ago, baansgr said:

With loan interest rates at 9% in Thailand and very hefty up front insurance premiums, interest alone would be madness and not even covered by rental income.... That's if you could even obtain a loan which without income from hubby,  and tax payments is most unlikely 

We have been quoted 6%.

[Peachplum]

13 hours ago, baansgr said:

With loan interest rates at 9% in Thailand and very hefty up front insurance premiums, interest alone would be madness and not even covered by rental income.... That's if you could even obtain a loan which without income from hubby,  and tax payments is most unlikely 

What do you mean without income? Both of us earn a good salary and we both pay tax.

[sometimewoodworker]

12 hours ago, Peachplum said:

It would not be an unsecured loan. We have a lot of assets in Thailand and my husband has a good income.

 

12 hours ago, Peachplum said:

We have been quoted 6%.

With that much more information my advice could change.

If you can repay the loan entirely on your husbands Thai income (you have to exclude yours as children could stop you working) with the security entirely based on assets in Thailand then it is workable.

 

if you are basing any calculations on the value of the UK property or any income from the UK property then you have been very badly advised. Your monthly net income could be as low as just over 10,000 Baht from your house. The property value of £200,000 / 9,000,000 Baht could drop down to 6,000,000 Baht if the exchange rate tanks again,  and so if the property forms any part of the calculation for the loan you could have to repay 4,000,000 Baht with almost no notice, as there is a loan to asset ratio in that kind of lending.

[sometimewoodworker]

Holding a single UK property is unlikely to generate much income, specially in the price range you are talking about. It's only real benefit is in securing an asset that is likely to maintain its value. 

 

Though you will will have to find a very good letting agent and that can be an interesting experience.

 

How I know this is that I have a couple of properties and an extremely good agent, we have been doing business together for over 20 years.

Edited July 23, 2018 by sometimewoodworker

[ResandePohm]

Not a smart idea to finance house purchase or anything else in the UK with foreign loans. The Pound is still dropping in value and you will end up paying more than you need to. It is more to your advantage to borrow the money in the UK.

[ResandePohm]

On 7/21/2018 at 6:07 PM, digger70 said:

Major issue I think,,, getting a Loan in Thailand and than The might think that you  disappear to the UK and don't pay the Loan back ,,,

He will need collateral and guarantors to get a loan in Thailand so why should the Bank care if he does. They lose nothing and may even make a profit.

[huawei]

On 8/4/2018 at 11:31 AM, ResandePohm said:

Not a smart idea to finance house purchase or anything else in the UK with foreign loans. The Pound is still dropping in value and you will end up paying more than you need to. It is more to your advantage to borrow the money in the UK.

 

Surely if prices are dropping for real estate in the Uk and the possibility of hitting 38 to sterling on the exchange rate, if a no or poor Brexit deal happens. There is value to be had.

 

if you rent out and subsequently the pound recovers..makes the loan cheaper

 

i think this this is a prime opportunity if there is a very weak Sterling..Intend to sell here if the exchange rate falls..but no loan risk.

 

plus you can hedge..

 

[mogandave]

If you can borrow the money in Thailand using your Thai income and collateral, you should be able to do whatever you want with it, including transfer if it to the UK to buy property.

Not sure if you can own property in the UK or not.