A Buyout Mortgage, also known as a refinance mortgage in some markets, is a refinancing option where you take a mortgage with a new lender to settle your existing mortgage with your current lender. The main reasons you might opt for a Buyout Mortgage are to lower your mortgage repayments or to access equity from your home. Being able to access equity means you have capital to expand your property portfolio in the UAE, invest elsewhere or to upgrade your existing home.
Generally, when you take a fixed rate mortgage this will always revert to a higher rate which is very often a fixed margin linked with EIBOR, this will mean repayments increase. At Mortgage Finder we not only help you reduce your interest rate, but often you can also benefit from a complete waiver of fees like valuation and processing charges.
Our mortgage brokers know that many clients want to change their lender but often do not realise how easy the process can be. The Mortgage Finder team are able to provide unbiased, expert advice on Buyout Mortgages.
Benefits of a Buyout Mortgage
- If a property is worth 5 million dirhams or below, Buyout Mortgages can offer equity release of up to 80% for UAE nationals and 75% for expats. Or if the property is worth above 5 million dirhams, then equity release of up to 70% for UAE nationals and 65% for expats is allowable.
- Repayment terms that suits your needs with a maximum term of 25 years.
- Flexible payment options with the allowance to make annual penalty free overpayments.
- Access to new equity which allows you to re-invest into the UAE's exciting property landscape or invest elsewhere.
Requirements for a Buyout Mortgage
Below we have summarised the general requirements, however these can vary and our expert mortgage brokers can advise you of your individual requirements:
- No missed mortgage payments in the past
- Satisfactory credit report
- A liability letter from your current lender, although this is required closer to completion
- New valuation
Fees
To complete a Buyout Mortgage in the UAE, in addition to the cost of a property evaluation, you will also need to pay for a mortgage de-registration fee and a mortgage registration fee. If you are looking for a Buyout Mortgage to take advantage of lower repayments, you can still save money despite the initial fees. On the other hand, if you are interested in order to access equity, then you will need to weigh up the options to understand whether this is the best option for you - our mortgage brokers can assist with this.
Why choose Mortgage Finder?
When you approach a bank directly to refinance your mortgage you are likely to be offered a better rate then your current one, however not necessarily the most competitive. Mortgage Finder's team of experienced mortgage brokers will offer you unbiased advice and assistance to secure the best rates and offers from our panel of over 20 lenders.
If you are considering a Buyout Mortgage and need more information or advice, please feel free to contact one of our experienced mortgage brokers today.
Please note that this information is intended for general use only, your individual circumstances may differ.
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