The Buying Process
The basic processing of a mortgage application in the Caribbean is similar to many other countries. An attorney is required and it is advised that all monies are paid through the attorney including deposits and mortgage funds received. The US$ mortgage product is the most attractive foreign currency loan available to overseas borrowers at this point in time. The interest rate is aligned to the US$ LIBOR rate on the London money market and is subject to a quarterly review.

Caribbean Mortgages and how they work
All mortgages are full status and proof of income and outgoings will be required. Caribbean mortgages can be arranged for acquisition, renovation & construction and the mortgage is secured on the property in the Caribbean

A deposit of 30% of the purchase price is required and you will also be liable for solicitor's fees.
In addition to the normal mortgage lending terms and conditions, the US$ mortgages is limited to a 70% maximum loan to value or 50% if stage payments are involved. The maximum term for a mortgage in most of the Caribbean is 15 years and all payments must be in US$. Although the Caribbean is made up of different independent countries mortgage are very similar, but variations do apply, therefore it is worth finding all the fact about the island in the Caribbean you wish to purchase on. Further details are available from Business Finance People Ltd.

Taxes & Other Costs
Applicants should budget for the following costs in their calculations:
Lenders Negotiation Fee – usually 1% of the loan
Valuation Fee – This is determined by the value of the property
Caribbean Arrangement Fee – Normal set at 1% of the value of the loan
Legal Fees – These should be clarified by the attorney and should include the bank’s lawyers fee, who prepares the legal documents associated with the mortgage
There is also a non-refundable arrangement fee from £395 to cover overseas phone costs and postage.

Questions & Answers

How much can I borrow?
The maximum loan available in the Caribbean is 70% or 50% for stage payments, but due to the mortgages being arrange as full status, this will be subject the income and outgoings and assessed on the capability of paying.

Supporting Documents Needed
Completed Mortgage Application Form
Completed New Account Application Form
Employers Letter stating position, salary, length of service and home address or an accountant/company secretary’s letter if self employed
Last Three Payslips in applicable
Six months Bank Statements
Two character references from professional persons
Bank reference from a known bank of two years
Last credit card statement showing address
Two certified copies of photo ID (passport and driving licence)
Last three annual tax returns
Written verification from an independent professional of declared assets and liabilities including savings & deposits to meet costs and equity
Copy of the sales agreement
Valuation report on the property (can follow later)
Copy of Incorporation documents if the purchase is in a company name
Evidence of down payment from own funds (bank statement), this should not be borrowed
Client should clearly demonstrate their link to any companies with authentic company documents

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- See also:
- Morocco Mortgages
- Italian Mortgages
- Spanish Mortgages
- French Mortgages