Can I Get a Mortgage in Dubai While Living in the UK?
Yes. If you live and work in the UK, it may still be possible to obtain a mortgage to purchase property in Dubai.
A number of UAE banks offer mortgage options for overseas and non-resident buyers, including salaried and self-employed applicants. However, lending criteria for someone living in the UK can be different from those applied to a UAE resident.
Your eligibility will normally depend on factors including your income, existing financial commitments, age, employment or business history, the property you are purchasing and the size of your deposit.
How Much Deposit Will a UK Buyer Need?
UK-based buyers should generally expect to provide a larger deposit than some UAE-resident purchasers.
The exact amount depends on the lender and your circumstances. Individual banks can apply their own lending criteria and may offer lower loan-to-value ratios to non-residents.
For this reason, we recommend establishing your mortgage eligibility and approximate borrowing capacity before committing to a property.
Remember that your deposit is separate from the other costs involved in purchasing a Dubai property, including the applicable Dubai Land Department, registration, agency and mortgage-related charges.
What Will a UAE Bank Look At?
A lender will want to establish that you can comfortably afford the mortgage.
Depending on the bank and whether you are employed or self-employed, you may be asked to provide documents such as:
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Passport and identification
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Proof of your UK residential address
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Recent UK bank statements
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Payslips and evidence of employment
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Evidence of existing loans and financial commitments
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Proof of your deposit and source of funds
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Additional financial information if you are self-employed or a company director
The exact documentation varies between lenders.
Get Mortgage Pre-Approval Before Choosing Your Property
If you intend to finance your Dubai purchase, obtaining an indication of your mortgage eligibility early in the process can be extremely useful.
It helps establish how much you may be able to borrow, how much cash you will need to contribute and the price range of properties you should be considering.
This allows your Dubai property search to be based on a realistic overall budget.
The Property Will Also Need to Qualify
Mortgage approval isn’t based only on the buyer.
The lender will also consider the property being purchased and will normally require an independent valuation before completing the mortgage.
Not every property or development will necessarily meet every lender’s criteria. This is another reason why discussing your intended financing method with us at the beginning of your property search can save considerable time later.
What About Off-Plan Property?
Financing an off-plan property can be different from obtaining a conventional mortgage on a completed property.
Many off-plan purchases involve paying the developer according to a construction-linked or scheduled payment plan. The availability and timing of mortgage finance will depend on the development, stage of construction, lender and individual buyer.
If you are considering off-plan property from the UK, we can explain the developer’s payment plan and help you understand what payments will be required and when.
Can Black Arrow Real Estate Arrange My Mortgage?
Black Arrow Real Estate is a Dubai real estate agency rather than a mortgage lender.
However, as part of your property purchase, we can help you understand the buying process and, where appropriate, introduce you to mortgage professionals who can assess your circumstances and explain the finance options available to you.
The final decision on mortgage eligibility, interest rates, loan amount and lending terms is always made by the relevant bank or finance provider.
Cash or Mortgage — Which Is Better?
There isn’t one answer that works for every UK buyer.
Some investors prefer to purchase with cash, while others prefer to use mortgage finance and retain some of their capital for other investments.
The appropriate approach depends on your financial circumstances, objectives, cost of borrowing and attitude towards risk.
Before you begin looking at properties, tell us whether you are considering cash, mortgage finance or a combination of the two. We can then take this into account when helping you identify suitable Dubai properties.