Chinese Bank Stalk UK Buy To Let Market

The most prominent Chinese bank is trying to tap into a growing demand for buy-to-let loans in the United Kingdom, at a time when most British banks have cut back heavily on their own mortgage products. The Bank of China, among the top three largest financial institutions in the world, has decided to offer British landlords and homeowners mortgages on more flexible terms and at more affordable rates than many UK-based lenders, as UK residents continue to find themselves locked out of the housing market, due to a dearth of loans. Despite this debut in the buy-to-let sector, the Bank of China is not entirely new to the UK. The financial institutions has loaned money to Chinese businesses and individuals in Britain for several years, but it now looks to expand to the general population.

Landlords interested in looking into loan possibilities through the Bank of China, however, should be prepared for a slightly different business approach, according to a report in the London Times. The bank will insist that all potential loan-seekers arrange a personal meeting with the financial institution. Additionally, if the bank decides to offer the given landlord or homeowner a loan, it will do so by tapping into its own reserves, rather than looking for other sources. Most experts agree that a lack of available buy-to-let loans and mortgages is continuing to cause headaches for Britons looking to expand their portfolios, or simply purchase their first home. In fact, the number of loans granted dropped by a stunning 48 percent between June 2008 and June 2009.

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