China's housing loan is quite different from Britain's housing loan in terms of bank interest rate difference, loan process, procedures, money-saving skills and so on. However, investors who come to the UK from China often miss the opportunity to invest properly because they don't understand the UK's loan policy. So what are the similarities and differences of housing loans between the two countries? Oshented will give you a detailed explanation today? 1, more banks, more choices. Domestic housing loans are basically several major state-owned banks. In addition to state-owned banks, there are Fujian Bank and China CITIC Bank, but they are not the mainstream after all. In contrast, there are many banks in Britain, of which more than 200 are eligible to apply for mortgage loans. When consulting independent loan consultants, sometimes they can find out more than 1000 loan products for you to choose from at once. It's really dazzling and dizzying. Sometimes, they will recommend some little-known banks to you, and you can get greater discounts than big banks. Even supermarkets like Tesco have their own banks, which can provide housing loans to buyers. The competition is fierce. In a bank on the shopping street in Britain, you can walk in and make an appointment to talk about mortgage loans. The loan specialist will carefully ask you about the total purchase price, down payment, annual household income and other details, and finally give you a loan amount and interest standard. With your permission, you can also get a credit score directly, and if you pass it, you can get a letter of intent for the loan. As long as they hear that you want to borrow money to buy a house, every family will take the initiative to contact you to win customers. Previously, a bank launched the slogan "You buy a house and I pay taxes", promising to pay 1% of the purchase price for the buyers within a certain price range (250,000 pounds). When you open the newspaper, you can often see the advertisements of large loans from banks. Of course, if you choose an independent loan broker (certified and supervised by the Financial Supervisory Authority of the United Kingdom), they are obliged to recommend the loan scheme that is most in line with the interests of customers, saving the cost of buyers going to the bank one by one and not necessarily getting the best loan scheme. Under normal circumstances, there are two restrictions on bank loans in Britain, that is, the total amount of loans is less than 4-5 times the annual income before tax; At the same time, the loan ratio cannot exceed a certain proportion of the house price. For self-housing, the highest proportion can reach 90-95%; For rental housing, the maximum can reach 85%. (But for overseas investors, these two items should be reduced accordingly. 3. Housing inspection and loan insurance. Slightly different from China, in Britain, property inspection is also essential before obtaining loans. When applying for a housing loan, buyers will be told that they must do two surveys: one is about the housing property rights and the surrounding environment, and the other is about the evaluation of the housing itself. For buyers, this kind of inspection is actually necessary. Ensure clear property rights and excellent property quality. The first one will be checked by your attorney, and the second one will be arranged by your loan advisor, intermediary and bank. There may be buyers who are worried that such a housing appraisal company will go through the motions. In fact, there is absolutely no need to worry. All the companies here are legally responsible. If they don't detect or have any accidents, they will also be severely punished and take responsibility. Each test costs about 300 pounds or more, depending on the size and value of the house. If you want to test in more detail, you can upgrade to more complicated evaluation, such as structured evaluation, which of course means you have to pay higher fees. When applying for a loan, the applicant will also be told to buy two kinds of insurance: real estate insurance and personal insurance. Housing property insurance is to prevent losses caused by the destruction of houses in the event of major disasters; Personal insurance is a kind of compensation to protect buyers from personal injury or death after buying a house. For example, a customer of China nationality bought a 370,000-pound conjoined house in the Fifth District of Northwest London, and the monthly insurance premium was around 50 pounds. Of course, it depends on the specific insurance requirements. The richer the insurance content, the higher the compensation amount, which means the higher the cost. For banks, with such insurance, it can be guaranteed that the interests of banks will not be lost in the event of natural disasters or personal injury or death of property buyers. For property buyers, it also increases the risk prevention ability of family life and property. 4. The bank loan will be paid directly to the lawyer. Unlike domestic banks that lend directly to sellers, the mortgage here will be paid directly to the buyer's lawyer, and then the buyer's lawyer will pay the seller's lawyer. The transaction risk between two lawyers who know relevant laws and regulations will be less. Another feature of British mortgage loan is its wide choice and flexibility. For example, you can choose fixed interest rate or floating interest rate. The advantage of fixed interest rate is that it remains unchanged for a certain period of time, but the disadvantage is that it is often slightly higher than floating interest rate. You can also choose to pay only interest or both principal and interest. If you choose to pay interest only every month, you need to pay off all the loans in one lump sum when the loan expires. The advantage of doing this is to help ease the current financial pressure, and the disadvantage is that you push the pressure to the end. For another example, if you sign a two-year contract, after two years, if the price of this bank is unreasonable, you can always find another bank and change the loan to another place. In China, there are few impressions of changing banks. Compared with China, British banks have a stronger sense of crisis. If the service is poor or the interest rate is high, consumers will change banks. It's a bit like a consumer watching TV with a remote control panel. If it's not good, I can replace you at any time. These characteristics determine that consumers have greater initiative.