The product has been put together by a partnership of Charcol, the National Bank of Dubai and Newcastle BS, and is based on an underlying rate of Emirates Interbank Offered Rate (EIBOR), currently 5.3 per cent, plus 3.55 per cent. There are two versions available; one with a 1.5 per cent discount for three months and one with a 1 per cent discount for six months.
With the mortgage subject to processing in the UK, there are three ways to raise the finance – an exclusive mortgage with the National Bank of Dubai in Dirhams secured against the Dubai asset, that is processed in the UK and subject to UK criteria; a UK remortgage secured against a UK property to release the cash to buy in Dubai or a combination of the above.
The maximum loan-to-value is 60 per cent for completed properties and 70 per cent for those under construction, while the processing fee is £399, with 1 per cent added to the loan.
Walter Avrili, product director at John Charcol, said: “To say it has historically been a challenge to arrange a mortgage in Dubai would an understatement. It’s not been uncommon to go through months of negotiation only to be denied finance on a technicality.”
Mike Pendergast, IFA at Zen Financial Services, said: “There may be demand for this in the high net worth sector.”
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