London

I am a Malaysian but have PR status in UK. Do I qualify for the loan?

No. The qualifying criteria for Overseas Mortgage product is strictly for Malaysian who has no PR and not citizen of UK.

Who is eligible for the loan?

Preferred Banking customers and above (i.e. Private Wealth and Private Banking customers).

Does the product cover completed properties as well as those under construction?

The product covers only “Off The Plan“ properties which are direct purchase from developer.

 

What are the locations covered under the Scheme?

Central London Zone 1, 2 and 3.

 

Do I need to take up Group Mortgage Term Assurance (GMTA)?

Group Mortgage Term Assurance is optional (applicable for MYR Loan only).

 

Do I need to purchase fire insurance?

You will have to purchase fire insurance for the building and contents personally from insurance company in UK and provide a copy of the certificate with the Bank endorsed as the mortgagee. For strata properties or non-landed properties, you are to obtain the proof of renewal for the fire insurance policy from Body Corporates (Management Corporation) on a yearly basis for as long as the property is charged to the Bank.

Is guarantor required for this loan?

Guarantor is required based on case to case basis.  All purchasers must be borrowers of the loan.

 

Will the bank be willing to finance all types of properties, including student accommodation, hotel residences, etc?

This scheme is designed to finance only residential properties, both landed and non-landed i.e. houses and apartments.  We will not be financing student accommodation, hotel residences or commercial properties.

 

Is refinancing of an existing loan with another FI (whether onshore or offshore) allowed under this scheme?

Yes, refinancing is allowed but subject to Bank’s discretion.
Only applicable to property that was purchased directly from developer.

Is loan disbursed in MYR or GBP?

For MYR Loan

  • Disbursement of the loan is in MYR but will be converted to GBP based on the GBP/MYR exchange rate at the Bank’s discretion.

For GBP Loan 

  • Disbursement of the Loan is in GBP.

For property that is under construction, when will the bank disburse the loan?

The Bank will only disburse the loan upon completion of the property with Occupancy Permit and Title issued.   It could be 1 to 3 years later depending on the construction progress.

 

Is Valuation Report required?

Yes, Valuation Report is required upon full completion of the property. Loan to be disbursed will be based on the lower amount between purchase price in SPA and current market value in the Valuation Report.

Who will bear the valuation and legal fees?

All valuation and legal fees are payable by you as Borrower. Financing option is available for MYR Loan only.

 

What if I cancel the loan after accepting the Bank’s offer?

The Bank will immediately appoint solicitors and valuer upon your acceptance of the Letter of Offer.  Hence, all fees and charges (if any) will be borne by you if the loan is aborted or cancelled subsequently, even if the loan is yet to be disbursed.

 

What if GBP depreciates after loan is disbursed?

If GBP depreciates against MYR causing the loan-to-value (“LTV”) increases, margin call may be triggered.  If the LTV has breached the bank’s tolerance level, you are required to top up the shortfall within 3 working days (applicable to MYR loan only).

 

What is Bank Negara Malaysia FEA (Foreign Exchange Administration) rules – Investment Abroad?

For MYR Loan 

  • A Malaysian resident/corporation with domestic Ringgit credit facilities is allowed to convert Ringgit into foreign currency up to RM1.0 million / RM50.0 million per calendar year for investment in foreign currency assets.
  • No limit to convert Ringgit into foreign currency for a Malaysian resident/corporation without domestic Ringgit credit facilities
  • No limit for investment in foreign currency assets by Malaysian resident individual/corporation (even with domestic ringgit borrowing) using their own foreign currency funds placed off-shore or on-shore).

For GBP Loan

  • A Malaysian resident individual can obtain up to RM10 million equivalent in foreign currency borrowing from licensed onshore banks to finance his investments abroad.