The UK property market has been attracting a lot of attention in recent years and many domestic investors have flocked to the UK to buy property, but due to a lack of understanding of the UK property market, many have encountered problems in the home purchase loan process. For this reason, this article will outline the steps to take in order to help investors better understand the process.

　　1. Estimating the amount of money

　　Before purchasing a property, you need to assess your loan amount in order to determine which price point you can purchase. The amount that can be borrowed depends on a number of factors such as the valuation of the property, age, income, level of expenditure, credit score, etc. The most important factor is the annual income. Generally, the amount that can be borrowed is 4-5 times the annual income. For example, if your annual income is RMB500,000, then you can essentially borrow RMB2 million, which means you can leverage a property of around RMB4 million or around £400,000.

　　If buyers don't know how to estimate themselves, it's best to ask a professional and reliable house-hunting consultant who can give you an estimate, so basically you won't have any problems.

　　2. Choose a plan

　　It is not enough to have an initial expectation of the loan, it is more important to understand the type of loan you are getting. In China there is little difference between commercial loans, but in the UK there are significant differences between banks and a wide range of products, so we need to choose the option that suits us best and has the most advantages.

　　There are several important parameters regarding the loan package: the type of loan, the amount of the loan, the length of the loan, the repayment method, the lending bank, the loan product (including the interest rate mix and fees), and other features of that loan product. Choosing different banks will determine different loan packages. Chinese customers usually choose banks such as Bank of China, HSBC, UOB, Gatehouse and Maybank.

　　When applying for a UK loan, it is important to understand the role of a loan broker (broker). These brokers deal with banks on a daily basis and are very familiar with the products, policies and loan limits of each bank. By working with a good broker, you can quickly find the most suitable bank and scheme for you, saving you a lot of time and effort.

　　3、 Prepare materials

　　Proof of identity category: passport, visa, proof of address;

　　Income proof category: salary statement, salary card flow, letter of proof of employment, other bank card flow, proof of tax payment;

　　Credit category: personal credit report;

　　Funds category: proof of deposit, proof of final payment;

　　Each bank's approval requirements are different. As long as your documents are in order, you can wait for the bank's approval notice once you have handed them in.

　　As a reminder, you need to be aware that when applying for a loan, you must prepare the required documents in advance. As some banks are slow to approve, to avoid delaying the progress of your home purchase, it is advisable to start preparing your documents and making your application 6-12 months before handing over your home and waiting for the bank's approval notice.