The opportunity to borrow money against property is still very much alive in the UAE.
Despite the global credit crisis impacting upon what was previously perceived by some as a sheltered region, the UAE still remains fluid, when compared to many established nations around the world. The greatest impact to date in the mortgage arena is the reduction in the percentage of loan to value of property (Loan to Value). Even up until June 2008, some banks and lenders offered Loan to Values of 90-95% on certain projects. Loan to Value ratios have been trimmed to more realistic levels of 80-85%, with the average across the market being approximately 70-75% these days.
Many of the international banks, such as HSBC and LloydsTSB, with credit risks elsewhere around the globe have taken more drastic measures, by reducing Loan to Values, as low as 60% and 50% respectively. However, there are better alternatives for those who do not have higher deposits of 30-50%.
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