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Raymond Chong
Raymond Chong

Concrete Analysis | Why Hongkongers looking to settle in the UK should buy a home before they emigrate

  • Getting a UK mortgage is actually easier when you are still in Hong Kong – via the ‘buy-to-let’ route
  • Buyers seeking a mortgage loan after landing in the UK will have to rebuild income proof, credit history from scratch in their applications

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Terraced homes in Birmingham, UK. Buying a house in the UK out of Hong Kong can be a daunting task. Photo: Bloomberg
Raymond Chong
The National Security Law imposed in June last year has sparked an exodus from Hong Kong. Nearly 65,000 Hongkongers have applied for British National (Overseas) visa this year, and tens of thousands have already flown to the UK to start a new life, including one or two of our own family and friends.
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Aspiration of being a homeowner flows in Hongkongers’ veins, whether living here or abroad. Buying a house as soon as possible often tops their to-do list even after moving to a foreign land. The main struggle though is, whether one should buy a home in the UK before flying over, or wait until one has settled down there.

It is true that buying a property in the UK out of Hong Kong could be daunting for many. The travel restrictions during the pandemic make checking out one’s dream flat almost impossible. It makes sense to defer the purchase until one actually lands there, rents for a while, and then shops around for the best listings offered in one’s preferred neighbourhood.

The plan is all convenient and nice, except for one catch – mortgage. Along the path to secure a mortgage loan when you are physically in the UK lie a lot of stumbling blocks.

06:15

BN(O) passport holders flee Hong Kong for new life in the UK, fearing Beijing’s tightening control

BN(O) passport holders flee Hong Kong for new life in the UK, fearing Beijing’s tightening control

Even if you manage to get a job of equivalent pay as in Hong Kong, British banks would still impose stringent assessment of your credit history. If you have been living in the country for less than two years, it is quite unlikely you could have built up sufficient information, making it very difficult for lenders to approve a mortgage loan at a reasonable interest rate.

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