Dubai Expat Loans and Mortgages

As an expat living in Dubai, you may find it more difficult to secure a mortgage or loan without an established credit history in Dubai. Also, the mortgages you are eligible for could have higher interest rates for a mortgage to purchase property in Dubai.

Whether you are looking to buy a residential or investment property in Dubai, one option you can explore is securing finance against a property in the UK, Jersey or Isle of Man. This option is available for people living in Dubai who have property with equity and who meet the eligibility criteria.

Another option is to borrow against international holdings including stocks, property and other asset types that may be considered.

Types of mortgages available to expats in Dubai

If you want to buy a property as a main residence in Dubai or an investment property, you can take out finance against your UK property to fund the purchase. Expat mortgage types available can include:

Variable Rate – With a variable rate mortgage, the interest rate can move up or down over time, typically in line with market conditions or a lender’s standard variable rate.

Interest-only – Many investors prefer to have an interest-only mortgage, so that the monthly payments are lower. You only pay off the interest on the mortgage loan and then at the end of the mortgage, you either sell the property, or you use other funds to pay off the capital.

Eligibility criteria and key factors affecting mortgage approval

Eligibility criteria will vary across different lenders but generally, the following criteria will be used to assess an application:

Equity – The amount of equity held in the property being used as security will be considered. Higher levels of equity can reduce overall lending risk, as there is greater security within the property’s value.

Affordability/income – Mortgage affordability is assessed by reviewing income, outgoings and overall financial position. For property investors, this may include employment income as well as investment income. Debt-to-income ratios and overall liquidity may also be taken into account.

What documents are required?

As part of the application process, you will be asked to provide documentation to verify your identity, address and financial position. This commonly includes:

• Proof of identity such as a passport
• Proof of address
• Payslips/bank statements/investment statements to verify income.

Additional documentation may be required depending on your circumstances.

How Nedbank Private Wealth can help

We specialise in working with expats to identify the most suitable finance solutions for more complex scenarios, such as buying property in Dubai. Contact our team so we can explain your options and the processes involved in more detail.