Village house mortgage

[Buffalo Bill]

Can anyone recommend a good person to speak to? I need to remortgage my house.

From experience I know simply walking into a branch of HSBC or Bank of China isn't the way forward.

If someone could let me have a name and number that would be much appreciated.

[Kawicott]

Hi Buffalo Bill

We recently purchased a top floor apartment, part of a village house in Luk Tei Tong. We had no joy from HSBC and Standard Charter just said 'We don't do mortgages on Lantau'. Bank of China were willing to help but only at 70%. So we were recommend to try - Inchroy Credit Corporation Ltd and they came up trumps. They were extremely helpful and answered a million questions from us. Contact details as follows:

Address: 22/F Wing Hang Finance Centre, 60 Gloucester Road, Wanchai.

Fiona Cheung
Senior Officer - Consumer Loans
Tel: 3669 2609, Email: fionacheung@whbinchroy.com

Mr C. K. Poon - ******NOW LEFT INCHROY******
Senior VP
Tel: (Direct Line) 3669 2628 Email: chikeungpoon@whbinchroy.com

Both are very approachable, good English and very knowledgable in their field. Given them a try.

Good luck.

[Buffalo Bill]

Excellent! Thank you.

Do you happen to have a contact number for anyone in the Bank of China? Tried a branch but didn't get very far.

[Kawicott]

Hi Buffalo Bill

Just found out today that CK Poon has just left Inchroy, don't know why but it could be to do with the Credit Crunch.

Sorry don't a contact name or number for Bank of China any more, but we rang their head office mortgage department and they gave us the correct name and contact details.

Good luck.

[Buffalo Bill]

Thanks. I'll give them a call on Monday. Found out my mortgage is linked to HIBOR and not Prime so, despite the rate cut my monthly payments have gone up 50%.

[Buffalo Bill]

I tried Bank of China (the number on their website) but they said they don't offer mortgages on village houses. Do you have a number for the mortgage department?

[Kawicott]

Hi BB

Sorry I don't have the number or contact name any more. We went with Inchroy in the end so had no reason to keep it.
I am surprised what they said because when my husband and I spoke to them they were positive they could help.
Sorry can't be of any more help.

[willywonka]

isn't there a branch of BOC in shatin that is extremely helpful (bo bo told me of this a year ago) i never followed it up cos we went with inchroy. you could give her a bell

[Buffalo Bill]

Spoken to a few people at BoC including the Cheung Chau branch manager. They have pulled out of the village house market as of 1st October due to the current market conditions. This is due for review, I am told early next year.

[Dolphin]

Does anyone know of any lenders for village house mortgages?

Is Inchroy still lending? Is so, what percentage? What about Bank of China? Does anyone have contact details for BoC mortgages?

What are likely purchase costs eg agent's fees, stamp duty, land tax?

Thanks for your help.

[Buffalo Bill]

Last October I went to around 15 lenders - of which only 1 or 2 were prepared to lend. Things will probably have improved by that point.

Bank of China were a definate no - saying they had removed lending for the Islands from their product portfolio for the foreseeable future. I spoke with the manager of the Cheung Chau branch. He was very helpful (in explaining the situation) and I would suggest you give him a ring.

Eventually I used Lloyds TSB - their multi currency option. They didn't seem to require too much information and were not bothered by the fact the property was on the Island. It does have a significant fee but there are no redemption penalties if you choose to repay lump sums early.

It is a multicurrency mortgage but personally I would not bother with this (ie take it out in HK$ and leave it unless you are being paid in another currency).

One other point to note - their rates are based on HIBOR. HIBOR spiked nastily last year. Also, their formula is HIBOR + 150Bps + some variable amount they choose to add each quarter.

[Buffalo Bill]

Stamp duty details here (depends on value of sale):

http://www.gov.hk/en/residents/taxes/stamp/stamp_duty_rates.htm