international mortgages

caribbean

Essential information for buying properties in the Caribbean

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

It is of paramount importance to seek independent advice from an overseas solicitor.

You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender.

You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a Caribbean property. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the properties purchase price.

Before signing the sales contract, the bank will require a copy of this document to be forwarded with the relevantapplication form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding.

Please be aware that the solicitor or notary may be incorporating costs for assigning the mortgage within his charges, and you should establish the actual cost before proceeding with a loan application.

Properties can be purchased either individually, in joint names or in the name of an Offshore Company. For advice regarding whether to purchase under an Offshore Company, independent legal advice should always be sought.

Please note, rates and lending terms vary from island to island.

Caribbean mortgages are available for the majority of nationalities, for either house purchase or re-financing for home improvement purposes only.

Proof of income is required in all cases, and can be made up of earned income, pension, investment or rental income. 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.

Mortgage details for:

Bahamas, Barbados, Belize, British Virgin Islands, Cayman Islands, Jamaica, St Lucia, Turks and Caicos

Maximum loan to value 70%
Maximum term 20 years
$250,000 minimum loan
Loans available in US Dollars, Sterling, Euros and CDN Dollars
Repayment and five year interest only mortgages available: Country Base Rate + 3.00%

Mortgage details for:Anguilla, Antigua, Nevis, St Kitts, St Vincent and Tobago

Maximum loan to value 60%
Maximum term 20 years
$250,000 minimum loan
Loans available in US Dollars, Sterling, Euros and CDN Dollars
Repayment mortgages rates: Country Base Rate + 3.00%

Eligibility

Available for purchases. For refinance, these are dealt with on a case-by-case basis
We typically arrange loans in US Dollars

Available on a Capital & Interest repayment basis only

The maximum loan to value is 70%
The maximum term is 20 years – available to age 65/70.
The minimum loan amount is US$250,000 with no maximum
All schemes require full documentary evidence of income – ‘self-cert’ mortgages are not available.

Affordability

To qualify for a mortgage in the Caribbean, a calculation is used to establish whether you can afford to maintain the mortgage repayments.

Your existing liabilities, including your UK mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Caribbean mortgage payments. All this must not typically exceed 40% of your monthly net income. For example if your net joint income is £2,500, 40% of this equates to £1000. If your only liability is your current UK mortgage payment of say £500 per month, this would leave a balance of £500 for your Caribbean mortgage repayment.

The amount that you can borrow is also restricted by the maximum loan to value as mentioned under Eligibility and criteria.

Proof of income requirements

If you are employed:

Your last six month’s payslips
Your last two years P60’s and employers reference
Your last six month’s personal bank statements

If you are self-employed:

Your last two year’s audited accounts, tax returns and accountants reference
Your last six month’s personal bank statements

Other documents will be required and will be confirmed when application forms are sent to you.

If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948

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