Mortgages now available to Nigerians in Diaspora

Sep

Mortgages now available to Nigerians in Diaspora

Unlike British Mortgages, Nigeria based mortgages are tied directly to your employer and monthly payments get deducted directly from your salary before you then receive the remaining of your paycheck, just like our National Insurance and PAYE tax. This makes it easier for the Nigerian mortgage provider to monitor their clients and impossible to secure if you are based in the diaspora, the risk becomes greater for them. Apart from this is the interest rate, UK rates are very low and have a variety of them while Nigeria mortgage market is still new and not widely available, the rates are very high and not fixed, they actually start from 18% upwards.

Saying all that we have managed to negotiate with two separate Brokers and on the lookout for more who have agreed to offer mortgages to Nigerians living abroad if you can make an upfront deposit of 50% and supply all in the checklist. Both Providers have a similar checklist

The providers are: Nigeria Homebase Mortgage Bank Nigeria and Omoluabi Mortgage loan Bank

The Nigerian interest is not fixed and usually ranges from between 15% -25% however with the UK Capital tax, Income tax, and stamp duty, you are better of buying in Nigeria where none of these excess taxes are charged or capital tax when sold or income tax on rent received.

Take for example

2-bed apartment London @ £300k

stamp duty:

On the first £125,000 – £3,750
On the amount from £125,001 to £250,000 – £6,249.95
On the next £50,000 – £4,000

This comes to a total of £13,999.95

Income tax on buy-to-let

The income you receive as rent is taxable. You need to declare any rent you receive as part of your Self Assessment tax return. The tax on your income is then charged in accordance with your income tax banding (20% for basic rate taxpayers, 40% for a higher rate, and 45% for additional rate)