Friday, 31 July 2009

The Chinese take a punt on the UK housing market

There is something grimly inevitable about this....

British landlords and homeowners will soon be able to mortgage their properties with the Bank of China. Mortgages from the Chinese bank are offered via four brokers, starting at 2.5% above the base rate.

Bank of China previously focussed on lending to Chinese communities in the UK, but is now widening its scope. Borrowers will have to attend a face-to-face meeting with the bank to secure the mortgage. The move could prompt more foreign banks to start lending on the British market as UK-based mortgage lenders continue to keep tight controls over lending.


Thanks Kevin for the link....

6 comments:

mike said...

This would be good news for the exchange rate in my opinion. Funds from China are surely welcome here.

Anonymous said...

Make sure to borrown in pounds: many Icelanders got burned on taking out loans and mortgages in foreign currencies. The pound could go down!

Liam said...

I think any lender who is so risk adverse that they actually interview every applicant is not going to be the answer to the property ramper's dreams.

They think they story gives weight to their argument that housing will boom again and make them all rich without lifting a finger. I guess the supposition is the BoC will be pouring their trillions into the UK housing market.

The Chinese will be our downfall not our saviours.

electro-kevin said...

First our shoe industry, now the banks.

They'll be shipping out theatre land next.

Whomsoever said Britain will remain the centre of banking in perpetuity is being selective about historical cycles. 500 years is all that white Europeans have been truly dominant - Anglophone nations less.

The housing market is a recent development and yet people talk of ever upward price trends as though they are based in ancient history.

dearieme said...

The Plice is Light.

Pakistan Property said...

I think its a good sign ... Chinese are moving forward in every field with a friendly hand ,their banks could be helpful in housing market boom.