FISCUS MORTGAGES - INFORMATION AND ADVICE

Caribbean Property Mortgage

PURCHASING CARIBEAN PROPERTY

This section covers the following regions of the Caribbean:

Owning property in the Caribbean for many people has been seen as merely a dream. Purchasing property in the Caribbean region, for residential or investment purposes can be a straight forward process.

Mortgages can be obtained in much the same way as you would apply for one in the UK.

ADVICE: CARIBBEAN MORTGAGES

Please note, that there are no non-status/self-certification mortgage facilities available in the Caribbean region (although renting out your property is permitted), all loans need to be supported by a minimum requirement of proof of income, i.e. if employed - copies of your last three month's payslips, last 3 years tax forms & copies of your latest P60/Employer’s Reference together with copies of your last 6 month’s Personal Bank Statements will be required or alternatively if you are self-employed - copies of your last three years Audited Accounts & copies of both your last 12 month's Business and last 6 month’s Personal Bank Statements will be required on application.

Unfortunately Caribbean, Lenders will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.

Your loan is based on your joint gross pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit cards (if the balance is not cleared on a monthly basis) and any maintenance – ie: Divorce - payments together with your proposed Caribbean mortgage payments must not exceed 38% of your net monthly income.

1) Please ensure that you will have full title to the property on completion and that the appropriate documents are available for the lender.

2) With new properties, find out the date the property will be registered in your name(s), as the lender cannot lend on the security of the property until it has been registered.

3) Whilst all reasonable steps will be taken to secure the loan on your overseas property as soon as possible, delays may occur due to the relevant country’s legal and administration system.

4) Check with the estate agent/lawyer that you are aware of the costs charged by the local legal & government authorities for purchasing a Caribbean property, noting that the lender will have their own legal costs for assigning the loan (the cost of which they will normally advise when they issue the mortgage offer).

5) It is essential that you take the appropriate independent legal advice before signing the sales contract or paying a deposit, if purchasing a foreign property, as would be expected if you were purchasing in your own country. The bank will require a copy of this document to be forwarded with the relevant application form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding.

6) Please be aware that the Lawyer/Notary may be incorporating within his charges, costs for assigning the mortgage and you should establish with the Lawyer/Notary the actual cost before proceeding with a loan application

7) It is advisable to arrange your mortgage finance before agreeing to purchase a property.

8) A Caribbean bank account will be required.

9) All loans are offered in US Dollars or local currencies only.

10) Most mortgages have to have a suitable life assurance policy assigned to them. It is not mandatory, but is strongly advisable.

11) Properties can be purchased either individually, in joint names or in the name of an Offshore Company. For this at least two people are required. For advice regarding whether to purchase under an Offshore Company, independent legal advice should always be sought.

Eligibilty / How Much Can I Borrow

Includes Caribbean Residental property

Loans available for the majority of Nationalities for either House Purchase or re-financing for Home Improvement purposes only.

Type of Loan: Repayment Mortgage only

Minimum: $300,000 (except Trinidad & Tobago - minimum $200,000). No Maximum, but can not exceed 75% of valuation or purchase price (whichever is the lower) - maximum % varies from Island to Island

Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available). Non-Status loans are currently not available

Term: 5 to 25 years up to a maximum age 65

Currency: Normally US Dollars & local currency

Current Variable Interest Rate in US Dollars: from 4.65% - varies from Island to Island

Example: Repayment mortgage of approx $300,000 over a period of 15 years at an interest rate of approx. 4.65% = approx $2,352.00 capital and interest per month = a total approximate amount payable over term of $427,120 including capital, interest, arrangement and survey fees.

Mortgage Costs

YOUR NEXT STEPS

If you have decided to purchase a Caribbean property, we would recommend that you speak to an Independent Financial Adviser (IFA) that can find the best deals on the market that are suited to your individual circumstances. If you would like to speak to one of our IFAs, please complete our quick mortgage enquiry form and we will have one contact you within the next 24 hours.