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Old 17.01.2021, 15:45
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House flat mortgage UK brexit

Does anyone know if a Swiss citizen can get a mortgage in Switzerland to purchase a house in UK and rent it out to pay off his mortgage?

How much is the advance payment?

Is there any convenience In doing this? For a Swiss person? Or what are the costs involved taxes etc in UK and Switzerland? Does he have to pay taxes in both countries? How much approx?


Is he allowed to do so with the brexit and all?
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Old 17.01.2021, 15:48
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Re: House flat mortgage UK brexit

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Does anyone know if a Swiss citizen can get a mortgage in Switzerland to purchase a house in UK and rent it out to pay off his mortgage?

How much is the advance payment?

Is there any convenience In doing this? For a Swiss person? Or what are the costs involved taxes etc in UK and Switzerland
Is he allowed to do so with the brexit and all?
A specialist lender will do this, however expect an interest rate of around 5% on a 5 year fix plus a 35% or more deposit.
It's probably not financially viable as the rent after tax & expenses won't pay the mortgage.
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Old 17.01.2021, 15:52
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Re: House flat mortgage UK brexit

the first port of call for the 'swiss person' would be to talk to their bank or one of the many mortgage advisory firms.

assuming their finances are in order there is no problem getting a mortgage for foreign property but as its to rent out and not in Switzerland the conditions would be tighter. interest rate and down payment would be higher and it should probably be done via starting a company than as an individual. i'd expect the mortgage deposit to be between 35 and 50% in most cases.

swiss mortgages are generally not 'paid off'. especially not commercial ones.

this is a far bigger topic than you are going to get any level of detail on from an internet english language forum....
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Old 17.01.2021, 15:54
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Re: House flat mortgage UK brexit

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A specialist lender will do this, however expect an interest rate of around 5% on a 5 year fix plus a 35% or more deposit.
It's probably not financially viable as the rent after tax & expenses won't pay the mortgage.

Are the expenses more than if he were a UK citizen?
How so? Does he have to pay tax in Switzerland and UK for that mortgage on that 1 house?


Let's base this for example on a property costing 100.000 or less.

I can't believe the deposit is 35%i thought in UK it was alot less. I mean in switzerland its 20% I think
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Old 17.01.2021, 15:55
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Re: House flat mortgage UK brexit

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the first port of call for the 'swiss person' would be to talk to their bank or one of the many mortgage advisory firms.

assuming their finances are in order there is no problem getting a mortgage for foreign property but as its to rent out and not in Switzerland the conditions would be tighter. interest rate and down payment would be higher and it should probably be done via starting a company than as an individual. i'd expect the mortgage deposit to be between 35 and 50% in most cases.

swiss mortgages are generally not 'paid off'. especially not commercial ones.

this is a far bigger topic than you are going to get any level of detail on from an internet english language forum....
I doubt a Swiss Bank would entertain the loan, unless it was secured against other 'Swiss' assets', to the extent that you would not actually need a loan.
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Old 17.01.2021, 15:55
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Re: House flat mortgage UK brexit

Also why a specialist lender. I'm sure a bank would also do this here
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Old 17.01.2021, 15:56
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Re: House flat mortgage UK brexit

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I doubt a Swiss Bank would entertain the loan, unless it was secured against other 'Swiss' assets', to the extent that you would not actually need a loan.
I would have thought the deposit %aswell as a job his work would be sufficient
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Old 17.01.2021, 15:58
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Re: House flat mortgage UK brexit

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Does he have to pay tax in Switzerland and UK for that mortgage on that 1 house?
There is no tax on mortgages in Switzerland. On contraire, you can deduct it from wealth and income. I do not know if UK has tax on mortgages, but it sounds pretty odd.
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Old 17.01.2021, 16:00
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Re: House flat mortgage UK brexit

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Are the expenses more than if he were a UK citizen?
How so? Does he have to pay tax in Switzerland and UK for that mortgage on that 1 house?


Let's base this for example on a property costing 100.000 or less.

I can't believe the deposit is 35%i thought in UK it was alot less. I mean in switzerland its 20%
Fully taxable in the UK.
BTL always requires a higher deposit, non resident BTL is very difficult to get. HSBC premier in Jersey but you need a 70,000 deposit to qualify for the account, they use to allow less.
I suspect the min price will be higher, it's not worth their while for a small loan, as I said it's a very specialist market.
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Old 17.01.2021, 16:01
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Re: House flat mortgage UK brexit

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There is no tax on mortgages in Switzerland. On contraire, you can deduct it from wealth and income. I do not know if UK has tax on mortgages, but it sounds pretty odd.
Once he pays it off. Will he have to pay UK and Switzerland something yearly for having a property abroad?
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Old 17.01.2021, 16:03
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Re: House flat mortgage UK brexit

unsecured loan probably easiest option for that amount. very unlikely to make any financial sense whatever way.
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Old 17.01.2021, 16:04
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Re: House flat mortgage UK brexit

Is it best if he gets the mortgage in UK or Switzerland?
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Old 17.01.2021, 16:05
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Re: House flat mortgage UK brexit

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Fully taxable in the UK.
BTL always requires a higher deposit, non resident BTL is very difficult to get. HSBC premier in Jersey but you need a 70,000 deposit to qualify for the account, they use to allow less.
I suspect the min price will be higher, it's not worth their while for a small loan, as I said it's a very specialist market.
I don't get it
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Old 17.01.2021, 16:06
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Re: House flat mortgage UK brexit

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I don't get it
Paragon Bank will offer 70% mortgage, however requires a UK passport. https://www.paragonbank.co.uk/interm...expat-criteria
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Old 17.01.2021, 16:07
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Re: House flat mortgage UK brexit

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Fully taxable in the UK.
BTL always requires a higher deposit, non resident BTL is very difficult to get. HSBC premier in Jersey but you need a 70,000 deposit to qualify for the account, they use to allow less.
I suspect the min price will be higher, it's not worth their while for a small loan, as I said it's a very specialist market.
I have HSBC premier in Jersey without any significant deposit. Don't have a mortgage with them though.
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Old 17.01.2021, 16:08
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Re: House flat mortgage UK brexit

But if he gets the mortgage in Switzerland for the property in UK its tax deductable right? So he wouldn't have to pay the tax in UK?
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Old 17.01.2021, 16:10
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Re: House flat mortgage UK brexit

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Once he pays it off. Will he have to pay UK and Switzerland something yearly for having a property abroad?
Real estate abroad affects the tax rate determining wealth.
The taxable wealth however is not affected.
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Old 17.01.2021, 16:10
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Re: House flat mortgage UK brexit

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But if he gets the mortgage in Switzerland for the property in UK its tax deductable right? So he wouldn't have to pay the tax in UK?
All UK generated income is subject to UK tax, however with the UK personal allowance of 12,500 I doubt any tax will be payable on a 100k home.

I doubt a Swiss Bank would entertain the loan.
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Old 17.01.2021, 16:12
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Re: House flat mortgage UK brexit

tax on what? what kind of tax are you expecting? mortgages aren't taxed. anywhere as far i know.
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Old 17.01.2021, 16:12
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Re: House flat mortgage UK brexit

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I have HSBC premier in Jersey without any significant deposit. Don't have a mortgage with them though.
Advance customer I suspect? They only offer Premier accounts in Jersey now.
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