Mortgage financing through Thai banks

[DamHugs]

 

I live in Thailand, have a work permit, job and I am payed locally through a Thai company. Im looking into buying property in either Samui or Koh Phanghan, a villa rather than a condo. I have good credit rating and own some proterty in the UK. From my understanding I can apply for a mortgage through HSBC or some local Thai banks for LTV of around 50% . Any reccomendations of banks to speak with directy? Or would it be best to speak to a local estate agent/law firm to assist with finding financing?  Also any idea wheather my mortgage would be effected, if in the future my income comes from the UK rather than my present job in Thailand?

 

The more I read on property in Thailand the more confused I become!

 

Cheers ????

 

 

[Pravda]

11 minutes ago, DamHugs said:

The more I read on property in Thailand the more confused I become!

 

And you want to buy a Villa?

[bkk6060]

Interesting keep us posted as I have never heard of a foreigner getting a mortgage here.  To add, I would say no way whatsoever from foreign income.

 

[ThaiBunny]

11 minutes ago, bkk6060 said:

Interesting keep us posted as I have never heard of a foreigner getting a mortgage here.  To add, I would say no way whatsoever from foreign income.

I recall some years ago reading somewhere that Bangkok Bank's Singapore branch would finance a mortgage over property in Thailand, but never about a Thai bank in Thailand lending to a foreigner. My impression is that there's a banking regulation that forbids it although perhaps not, as this article (readily discoverable via Google) suggests - https://silklegal.com/getting-a-mortgage-in-thailand/

[ezzra]

8 minutes ago, bkk6060 said:

Interesting keep us posted as I have never heard of a foreigner getting a mortgage here.  To add, I would say no way whatsoever from foreign income.

 

From memory i think UBS bank and another one used to give loans to buy properties, not sure now though, buy you have to be a solid borrower with good working history, WP and tax payments records to qualify... 

[baansgr]

Its impossible for a villa as you do not own the property in anyway, either leased or though a company. UOB used to offer loans on condos. Best option is the developer or seller offers you a payment plan but that would probably extend no more than 5 years

[john69]

If at all possible, you probably need a Thai national as a garantee.

 

[KamnanT]

1 hour ago, ThaiBunny said:

My impression is that there's a banking regulation that forbids it although perhaps not, as this article (readily discoverable via Google) suggests - https://silklegal.com/getting-a-mortgage-in-thailand/

My understanding is that the local mortgage prohibition is the logical consequence of another restriction: that foreigners (other than those with permanent residency) who purchase property in Thailand must remit the entire purchase price from overseas and present the FET (foreign exchange transaction) receipts at the Land Titles Office before they will be allowed to transfer ownership into their name.  If a local bank were to advance the purchase amount under a mortgage, there would be no such inbound transfer.
 

I have PR and have, in the past, obtained mortgages from Thai banks on two occasions.

[bkk_mike]

My wife got a Thai mortgage based on my non-Thai income, from UOB.

 

Your problem will be that, as a foreigner, you're not allowed to own the land a villa would be sitting on, which means you need a Thai company or individual to own the land, at which point they're the ones the bank would be dealing with.