Non Status Mortgages For Thais

[torrenova]

I know the basic criteria for mortgages are on the big banks' websites but I am wondering if there are non status loans available where a much higher deposit is put down and the paperwork is not so rigorous.

I know in the UK, before the crash and I guess still so now actually, that if you had a high deposit, you could get a mortgage without having to go through the credit checking procedures and proving your income etc. These used to start around 25% down but with something over 30% to 40% down you are not really putting the bank at risk of losing their cash are you ?

I would like the missus to get one but we are not long enough down the fictitious job and paying tax blah blah blah path that they want to see for the regular stuff.

Any ideas ?

[skybluestu]

I know the basic criteria for mortgages are on the big banks' websites but I am wondering if there are non status loans available where a much higher deposit is put down and the paperwork is not so rigorous.

I know in the UK, before the crash and I guess still so now actually, that if you had a high deposit, you could get a mortgage without having to go through the credit checking procedures and proving your income etc. These used to start around 25% down but with something over 30% to 40% down you are not really putting the bank at risk of losing their cash are you ?

I would like the missus to get one but we are not long enough down the fictitious job and paying tax blah blah blah path that they want to see for the regular stuff.

Any ideas ?

I'm currently applying for a home loan with Bangkok Bank and they are asking for a lot of documents. I am paying 40% and wanting to borrow 60% from them, the loan is in my wife's name with me as a guarantor. They want to see bank statements for both of us, my employment contract, receipts for expensive recent purchases ie Pick Up, Motorbike, Electrical goods plus other things and they are taking forever to process the application, 5 weeks so far!

[Farma]

<Snip>they are taking forever to process the application, 5 weeks so far!

I watched the process a Thai went through getting a loan a few months back. It seems so complicated and took 2 months.

Ask for the loan providing basic information

Loan officer agrees with proposal (suggests farang involvement not mentioned)

Proposal sent to head office Bangkok for provisional approval (I believe a head office team meets once a week? to look at loan applications)

Provisional approval given

Submit detailed documents to branch loan officer (Again suggests farang involvement not mentioned)

Bank sends independent evaluator to assess the property

Loan officer recommends loan and forwards loan application to Bangkok for approval

Wait for Head office team to meet and decide

Loan approved

Arrange meeting to complete deal.

[torrenova]

Thanks for that.

I didn't expect them to need a guarantor at 40% down !

Anyone know what happens if there is no guarantor ? As I would not wish to be guarantor but would like her to get it "on her own". Obviously what happens behind the scenes is not their business (though they think it is !) and I am not putting my financial records on show for anyone, least of all a Thai bank.

I'd really appreciate it if someone knew a Thai going through this procedure where the Thai had a salary and bought the property on that basis, without any westerners in the picture and no guarantors. Thanks.

Edited November 22, 2008 by torrenova

[jdinasia]

My partner is 'pre-approved' for enough for a nice house upcountry (or a decent condo in bkk) but he already owns a condo here so it would not be a totally unsecured loan or solely based upon his salary (which is more than most farang working in Thailand make)

[torrenova]

My partner is 'pre-approved' for enough for a nice house upcountry (or a decent condo in bkk) but he already owns a condo here so it would not be a totally unsecured loan or solely based upon his salary (which is more than most farang working in Thailand make)

Unless totally necessary or the first property still has an outstanding mortgage, why give additional security if the salary alone will be sufficient to secure the mortgage ? Thanks though for the insight.

[Farma]

That was the case in the situation I described above. The loan was given on the basis of the Thai persons income with no guarantor needed. The bank uses the valuers assessment or purchase price as a guide and offers a percentage of the lower amount as a loan amount. In the case mentioned the bank offered a 70% loan on the purchase price as it was lower than the assessment. The bank holds the property deeds as security until the loan is paid in full.

[jdinasia]

My partner is 'pre-approved' for enough for a nice house upcountry (or a decent condo in bkk) but he already owns a condo here so it would not be a totally unsecured loan or solely based upon his salary (which is more than most farang working in Thailand make)

Unless totally necessary or the first property still has an outstanding mortgage, why give additional security if the salary alone will be sufficient to secure the mortgage ? Thanks though for the insight.

I think we are seeing the end of unsecured loans in most places ... non-performing loans are a major issue.