Living In The Uk, But Thinking Of A Thai Bank Loan.

[Trebilcock]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

[MJP]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

Unsure, but reckon you're chances are exactly zero.

Best contact someone like Rosegate Consulting.

[Trebilcock]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

Unsure, but reckon you're chances are exactly zero.

Best contact someone like Rosegate Consulting.

Wow, thanks for the quick reply. Do you mean my (our) chances of getting a loan are zero?

Edited November 14, 2008 by Trebilcock

[MJP]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

Unsure, but reckon you're chances are exactly zero.

Best contact someone like Rosegate Consulting.

Wow, thanks for the quick reply. Do you mean my (our) chances of getting a loan are zero?

Are you married to a Thai national?

[Trebilcock]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

Unsure, but reckon you're chances are exactly zero.

Best contact someone like Rosegate Consulting.

Wow, thanks for the quick reply. Do you mean my (our) chances of getting a loan are zero?

Are you married to a Thai national?

Yes, that's right. Me and the missus live in the UK, sister-in-law in Thailand.

[MJP]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

Unsure, but reckon you're chances are exactly zero.

Best contact someone like Rosegate Consulting.

Wow, thanks for the quick reply. Do you mean my (our) chances of getting a loan are zero?

Are you married to a Thai national?

Yes, that's right. Me and the missus live in the UK, sister-in-law in Thailand.

Well, I'm not sure how they perceive risk. Perhaps if the mortgage is in your wife's name and you as guarantor.

I think in the current climate, especially looking at the risk of the UK defaulting on it's debt as a country and Sterling becoming the Great British Peso, I doubt they'd go for it. At least the LTV would be very low and interest high.

I'd save up old chap and build you're own. We're coming into a period of sustained deflation and TBH the last thing you should do now is take on debt.

Only way to know is ask the banks. Thai Parnip (Siam Commercial Bank), give them a try, I've always found them to be excellent.

[Trebilcock]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

Unsure, but reckon you're chances are exactly zero.

Best contact someone like Rosegate Consulting.

Wow, thanks for the quick reply. Do you mean my (our) chances of getting a loan are zero?

Are you married to a Thai national?

Yes, that's right. Me and the missus live in the UK, sister-in-law in Thailand.

Well, I'm not sure how they perceive risk. Perhaps if the mortgage is in your wife's name and you as guarantor.

I think in the current climate, especially looking at the risk of the UK defaulting on it's debt as a country and Sterling becoming the Great British Peso, I doubt they'd go for it. At least the LTV would be very low and interest high.

I'd save up old chap and build you're own. We're coming into a period of sustained deflation and TBH the last thing you should do now is take on debt.

Only way to know is ask the banks. Thai Parnip (Siam Commercial Bank), give them a try, I've always found them to be excellent.

Thanks very much for the input mate. Much appreciated. Fot various reasons I think we have to at least try for the loan, and what I'm really asking is what happens if we have to default on the payments for any reason; is it a case of the bank re-posessing the house as you might expect here in the UK, or do Thai banks go about things differently and try to get their hands on your dosh (in a UK account in this case)? Sorry again if this sounds stupid, but I really have absolute zero experience in this area. Thanks again for taking the trouble to help.

Edited November 14, 2008 by Trebilcock

[MJP]

Hi. Myself and my wife (living in the UK) and sister in law are looking to take out a loan in Thailand to buy a house. If I provide UK bank details and in the future it all goes pear-shaped for any reason, could the Thai bank get their hands on my money in any way? Very doubtful they could make any legal claim in another country, and I could probably just move my money into another account anyway? Or would the bank just reposess the house and we'd forfeit all payments up to that time? Sorry if this all seems a bit naieve, but I'm woefully inexperienced in this kind of thing and would really appreciate any advice. Cheers.

Unsure, but reckon you're chances are exactly zero.

Best contact someone like Rosegate Consulting.

Wow, thanks for the quick reply. Do you mean my (our) chances of getting a loan are zero?

Are you married to a Thai national?

Yes, that's right. Me and the missus live in the UK, sister-in-law in Thailand.

Well, I'm not sure how they perceive risk. Perhaps if the mortgage is in your wife's name and you as guarantor.

I think in the current climate, especially looking at the risk of the UK defaulting on it's debt as a country and Sterling becoming the Great British Peso, I doubt they'd go for it. At least the LTV would be very low and interest high.

I'd save up old chap and build you're own. We're coming into a period of sustained deflation and TBH the last thing you should do now is take on debt.

Only way to know is ask the banks. Thai Parnip (Siam Commercial Bank), give them a try, I've always found them to be excellent.

Thanks very much for the input mate. Much appreciated. Fot various reasons I think we have to at least try for the loan, and what I'm really asking is what happens if we have to default on the payments for any reason; is it a case of the bank re-posessing the house as you might expect here in the UK, or do Thai banks go about things differently and try to get their hands on your dosh (in a UK account in this case)? Sorry again if this sounds stupid, but I really have absolute zero experience in this area. Thanks again for taking the trouble to help.

I'm not sure on mortgages there.

http://www.pattayabuilders.net/

Try Rosegate for some advice. Link above.

Be careful bruv and really do your research. If you're already worried about defaulting . . . well just go steady.

[GuestHouse]

Thanks very much for the input mate. Much appreciated. Fot various reasons I think we have to at least try for the loan, and what I'm really asking is what happens if we have to default on the payments for any reason; is it a case of the bank re-posessing the house as you might expect here in the UK, or do Thai banks go about things differently and try to get their hands on your dosh (in a UK account in this case)? Sorry again if this sounds stupid, but I really have absolute zero experience in this area. Thanks again for taking the trouble to help.

When a person owing money to a Thai bank defaults on the payments the Thai Bank (after a period of writing demanding payment) takes legal action against the debtor. The Courts will usually seize the asset (the property) and auction it to recover the debt.

The auction works like this: They first offer the property at a price near market value and look for bidders at that price or higher.

Failing to get a buyer the first time they reduce the price and try again.

This continues until the price falls below what the property is worth to the bank, at which time the banks asks for the property to be handed over to the bank in lieu of the debt.

If the property sells above the outstanding debt the residue is returned to the debtor (minus court and legal fees).

As the bank will normally take the property at the price it is worth to them there is usually no residual debt to the debtor, in the case there is a residual debt the bank may take further legal action for recovery of that debt - This will not be taken outside of Thailand.

-----

However you are running a couple more significant risks.

Risk 1. Exchange rate fluctuations - Running a mortgage in a currency other than that which you are earning leaves you wide open to fluctuations in currency. For example, a few months ago a Bht40 K per month mortgage would cost you around £615 per month: Today the same mortgage would cost £784

A bigger risk is the SiL. You are planning to buy a house, you and your wife are in the UK, rest assured the SiL will move into the house, probably with MiL, FiL, BiL and any number of other iL..... If SiL is not married at the moment, you can rest assured she'll suddenly become extremely eligible not long after getting the keys to what is going to be her abode.

By the time you have finished paying for this house in Thailand, and assuming you have been able to save enough money in your own account to make the move, you'll arrive in Thailand to find that your house is nothing of the sort. You'll have a resident extended family living waiting for you to put on the house warming party. If you are lucky you might just get your own room..... if you do, make sure it's sound proofed.

My advice, do not buy a house in Thailand unless you are either going to live in it, or you are going to rent it out for income to people who are absolutely no relationship to your wife or any member of her extended family.

Edited November 15, 2008 by GuestHouse

[MJP]

Thanks very much for the input mate. Much appreciated. Fot various reasons I think we have to at least try for the loan, and what I'm really asking is what happens if we have to default on the payments for any reason; is it a case of the bank re-posessing the house as you might expect here in the UK, or do Thai banks go about things differently and try to get their hands on your dosh (in a UK account in this case)? Sorry again if this sounds stupid, but I really have absolute zero experience in this area. Thanks again for taking the trouble to help.

When a person owing money to a Thai bank defaults on the payments the Thai Bank (after a period of writing demanding payment) takes legal action against the debtor. The Courts will usually seize the asset (the property) and auction it to recover the debt.

The auction works like this: They first offer the property at a price near market value and look for bidders at that price or higher.

Failing to get a buyer the first time they reduce the price and try again.

This continues until the price falls below what the property is worth to the bank, at which time the banks asks for the property to be handed over to the bank in lieu of the debt.

If the property sells above the outstanding debt the residue is returned to the debtor (minus court and legal fees).

As the bank will normally take the property at the price it is worth to them there is usually no residual debt to the debtor, in the case there is a residual debt the bank may take further legal action for recovery of that debt - This will not be taken outside of Thailand.

-----

However you are running a couple more significant risks.

Risk 1. Exchange rate fluctuations - Running a mortgage in a currency other than that which you are earning leaves you wide open to fluctuations in currency. For example, a few months ago a Bht40 K per month mortgage would cost you around £615 per month: Today the same mortgage would cost £784

A bigger risk is the SiL. You are planning to buy a house, you and your wife are in the UK, rest assured the SiL will move into the house, probably with MiL, FiL, BiL and any number of other iL..... If SiL is not married at the moment, you can rest assured she'll suddenly become extremely eligible not long after getting the keys to what is going to be her abode.

By the time you have finished paying for this house in Thailand, and assuming you have been able to save enough money in your own account to make the move, you'll arrive in Thailand to find that your house is nothing of the sort. You'll have a resident extended family living waiting for you to put on the house warming party. If you are lucky you might just get your own room..... if you do, make sure it's sound proofed.

My advice, do not buy a house in Thailand unless you are either going to live in it, or you are going to rent it out for income to people who are absolutely no relationship to your wife or any member of her extended family.

Excellent advice.

I've built houses for cash. Very cheap back then when the Pound was 75+. The first one I did was for the old woman and her parents. Renovated and extended the Issan shack to 4 bed with a few extras to make it comfortable. This cost me two weeks income.

Thus there was no excuse for these gremlins to move once I built our own family home. Only problem is, the new one is almost exactly 200 yards from the old one.

Put a 2.5m wall round the entire perimeter and huge gates at the front of the 23m driveway. That should keep the bastards out!

To the OP, I think you really need to look at where life is taking you first. Think coldly and objectively with head and do not listen to heart. So many farang get burned here. Getting burnt was fine during the big boom in the west, but it's no joke now we are facing an economic depression probably worse than the 1930's.

I'll tell you now, if the old woman let's me go, I'll have not much left and will not bother trying to start again (read that as you will).

[Trebilcock]

Thanks very much for the sound advice guys. I know it's a bad time, what with the Pound falling etc, but for various reasons we have to go for it. Both sisters are working, one in the UK & one in Thailand, so we think they can keep up the repayments. If they need me to help get the loan in the first place, then so be it; they're my family now, they need me, and I have to trust them. Thought long and hard about this over the last couple of weeks, and what finally swung it was looking at my baby son one night and wondering what he might think of me if one day he finds out his Dad just stood by and let his one remaining Grandparent live out her days in the tiny, hot, cramped room they have now. Luckily, it's a relatively small family by Thai standards with no other siblings. The idea is that the MiL, SiL and her 3 year old daughter live in the house, and we stay there at holiday times. Just booked a trip for January, so we will see what transpires. Thanks again for taking the trouble to help.

[GuestHouse]

Do yourself a favour.

Start keeping a record of exactly how much money you and your wife are sending over to your wife's family.

It might come in handy if your son grows up to ask a few questions you have not yet thought of.