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John Charcol to revolutionise the Dubai property market

24th September 2007 Print
John Charcol has agreed an exclusive deal with the National Bank of Dubai to provide mortgage finance for UK residents wishing to buy in Dubai. The relationship now means that UK borrowers can arrange a mortgage in Dirhams (the local currency) with the mortgage subject to efficient and quick processing in the UK.

Walter Avrili, product director at John Charcol, comments: “To say it has historically been a challenge to arrange a mortgage in Dubai would be somewhat of an understatement. It has not been uncommon to go through months and months of negotiation only to be denied finance on what most of us would recognise as minor technicalities. We are hoping to put an end to this frustration, offering mortgages for properties in Dubai with UK criteria and processing. This is revolutionary in Dubai and should make an enormous difference to the often frustrating process.”

The market in Dubai is relatively new with a recent change in property laws which now allow non-residents to buy property. John Charcol is offering potential buyers who reside in the UK three distinct ways to raise the finance for a purchase or remortgage in Dubai.

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 a property in Dubai.

A combination of both of the above.

Dubai Mortgage

The product has been put together by a partnership of John Charcol, the National Bank of Dubai and the Newcastle Building Society, who are the third party processor in the UK. The product is based on an underlying rate of EIBOR, currently 5.3%, plus 3.55%. There are two versions available, one with a 1.5% discount for 3 months and one with a 1% discount for 6 months.

John Charcol launches Dubai franchise

In addition to the new product for UK residents, John Charcol has also opened a franchise in Dubai to cater for non-UK residents who wish to buy or refinance property. The franchise has access to all the major lenders in Dubai as well as the new, unique facility.

Avrili continues, “Dubai is clearly a growing and developing market and offers borrowers a new opportunity abroad. Dubai has been popular with holidaymakers and businesses for a number of years, offering tax-free salaries, wonderful shopping and leisure facilities, and all-year sun. We are now offering the chance for investors to enjoy this, safe in the knowledge that they are dealing with criteria and processes setup by the UK’s leading independent mortgage broker.”