OCBC Bank (Malaysia) Bhd revealed that it will provide a new mortgage loan facility to help customers finance their residential property purchases in prime sections of central London.
With the launch of the new scheme, customers can now invest in London properties with peace of mind, knowing that their loan facility is fixed in the ringgit, mitigating foreign exchange risks, according to Charles Sik, Head of Consumer Financial Services at OCBC Bank.
“Our goal for financing products is to offer as many bespoke loans as possible to our customers. London property prices are certainly on an uptrend and we think it’s a really good time now to capitalise on this,” said Mr. Sik.
According to Emmanuel Ng, OCBC Bank Currency Economist, foreign exchange rate fluctuations are important in determining the purchase of overseas property. The ringgit is expected to remain sturdy against the British Pound Sterling (GBP), on a structural basis.
“The ringgit sits comfortably within the Asian growth sphere and is also underpinned by net positive foreign capital inflows into the region, as well as a favourable balance of payments environment,” Mr. Ng said.
The OCBC Overseas Property Financing facility provides a financing margin of up to 75 percent and a loan tenure of up to 30 years or when a person turns 65, whichever comes first.