Coreco Commercial have many clients who own properties in the UK via an offshore entity. While many enquiries come from British citizens, we also have numerous foreign national and overseas clients with the same requirements.
An offshore mortgage is designed for clients outside the UK who wish to purchase or remortgage properties in the UK via an offshore entity. These are usually held offshore in tax-efficient locations such as the Channel Islands, Cayman Islands, and the British Virgin Islands, to name a few. Complex trust structures can also be catered for.
Offshore mortgages often come with higher interest rates, as the borrowing entity is in a different country and may have other regulations than the UK, where the property is located. Furthermore, offshore mortgages may require additional documentation and legal work, as the process involves two countries and different laws. That is why it is essential to speak to a mortgage advisor such as ourselves, to figure out the best options for you.
As offshore mortgages and offshore tax planning generally can be very complex, independent tax advice is essential before you decide to proceed. Coreco mortgage advisers are experienced offshore mortgage brokers but we are not tax advisers ourselves. If you would like to speak to an expert, we can refer you to highly experienced tax experts if required. Get in touch for more information.
Ready to speak to us about your offshore mortgage? Contact our friendly team of advisers on 020 7220 5100, or fill out our online contact form and we’ll be in touch shortly. Looking for more information? Read on below!
Here are some key things to know about obtaining a mortgage in the UK via an offshore entity:
1. Tax implications: Using an offshore entity to obtain a mortgage in the UK may have tax implications, as the borrower may be subject to additional taxes or reporting requirements. It is essential to consult with a tax professional to understand the tax implications of using an offshore entity. We are not tax advisors therefore we recommend speaking to an experienced tax professional when looking for an offshore mortgage.
2. Legal requirements: Legal requirements must be followed when using an offshore entity to purchase a property and obtain a mortgage in the UK. Requirements may vary depending on the location of the offshore entity and the type of entity being used. We have provided lending for non UK based entities in the Isle of Man, Jersey, BVI and Guernsey.
3. Funding restrictions: Some UK lenders may restrict funding mortgages to offshore entities and typically, minimum loan amounts start around £500K.
4. Disclosure requirements: When using an offshore entity to obtain a mortgage in the UK, there may be additional disclosure requirements related to the ownership and control of the entity. Working with legal and financial professionals who are experienced in navigating these requirements is crucial. At Coreco Commercial we are happy to work alongside your financial and legal advisors.
If you want to purchase or refinance a property via an offshore entity in England, Scotland, Wales, or the Channel Islands, here at Coreco, we are award-winning mortgage brokers; contact us for a no-obligation chat today.
Obtaining an offshore mortgage can be complex and commonly involves specialist lenders and private banks, requiring careful consideration of many factors including the financial background of the borrower. As with any other mortgage, lenders will typically require you to provide proof of your global income, assets and liabilities and a minimum deposit.
Depending on the country, you may also need to provide documents such as bank statements and tax returns. Lenders may also require you to provide proof of legal advice from a lawyer familiar with UK property law and specialist tax advice. Furthermore, you should be aware of potential tax liabilities when securing an offshore mortgage. To make sure you get the best deal for your personal circumstances it is essential to seek independent advice from a mortgage broker who knows the offshore mortgage market.
Overall, obtaining a mortgage in the UK via an offshore entity can be an elaborate process with unique requirements and risks. Therefore, working with experienced professionals and conducting thorough research before pursuing this option is essential. We can guide you to the best option and discuss the deposit or any other details you need to consider when choosing an offshore mortgage.
Typically, offshore mortgages are most suitable for those whose income is generated from outside of the UK, or are not a resident of the UK for tax purposes.
Offshore mortgages are also available for overseas clients purchasing residential property, which is to be used by themselves or their family as their base when travelling to the UK. Alternative options are also available for clients who’d like to purchase an investment property to let out.
Off-shore mortgages can be very tax-effective for a certain category of borrower seeking to own property in the UK. However, due to recent changes in the law you should always ensure that you take personal tax advice.
Offshore mortgage rates vary significantly because the product is so niche. It’s not a product your high street bank would necessarily have to offer so if you’re considering an offshore mortgage, it’s important to seek expert advice from an experienced offshore mortgage broker such as ourselves.
Depending on your personal circumstance, and the way in which you wish to structure your offshore mortgage, be it through a limited company or offshore trust, in sterling or in another currency, Coreco Commercial mortgage advisers are able to assist.
We have developed close contacts with several of the main private banks who take a “blank sheet of paper” approach to underwriting offshore mortgages. Every client is treated separately depending on their situation and thus, has a product designed specifically to their individual needs. This can result in more competitively priced products that are better than those available on the wider market.
Through “Back-to-Back” loans, it is possible to effectively borrow 100% of the mortgage amount so that money does not have to be brought into the UK. This can be achieved by depositing cash, shares or other assets with offshore banks.
Offshore company loans can be arranged through various international jurisdictions, be it the Channel Islands, BVI or any other location that is required. Complex trust structures can also be catered for.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
A percentage of the mortgage amount may be charged depending on individual circumstances. A typical fee is 1%.
Coreco Commercial is a trading style of Coreco Specialist Finance. Coreco Specialist Finance. Registered Office: 117-119 Houndsditch, London EC3A 7BT. Registered in England Number: 06851546
Coreco Specialist Finance Limited is authorised and regulated by the Financial Conduct Authority.
Some types of finance offered by Coreco Commercial are not regulated. Please contact us for more details.
Coreco Commercial advisers are experienced mortgage advisers but we are not tax advisers. Please seek independent tax advice if required before you decide to proceed.
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