When it comes to securing a mortgage, some Hong Kongers find it hard to pass UK lenders’ requirements. Propcap is a buy-to-let mortgage lender from Hong Kong, offering an alternative solution to Hong Kongers who plan to buy residential properties in the UK. Propcap is different from a traditional lender: They match high net worth individuals with borrowers and lend up to 65% of the property value. The application is offered in Cantonese, and typically faster and easier than getting a bank loan. We spoke to Louis Lee (+852 9156 5648) from Propcap about why this is an alternative option for Hong Kongers, especially if they don’t have income proof, are overage, and don’t pass the buy-to-let stress test.

Audio summaries in Cantonese are by Ying Goi Dim.

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How is your service different from the ones offered by UK lenders? ⦁ Propcap提供嘅投資按揭同一般英國貸款有乜分別

Propcap offers peer-to-peer mortgage lending. It finds high net worth individuals and matches them with borrowers. 

Compared with banks, we allow borrowers to deal with decision makers directly and are therefore more flexible with our mortgage assessments. For example, we have no pre-defined age restrictions on the borrower. Also, the leasehold period of your property is not our major consideration of the loan.

The process is faster, too. On average it takes fewer than 4 weeks to draw down a loan, while UK banks take much longer. 

Propcap holds a money lender’s licence in Hong Kong, and is regulated under the Money Lenders Ordinance in the city.

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How much loan can you offer? ⦁ Propcap 可以借幾多錢

We offer interest-only mortgages. We are able to lend up to 65% of the property value. 

We also offer short term loans, and the minimum loan is £100,000.

As soon as the borrower accept our loan offer, Propcap will prepare a loan agreement, which is legally binding to protect both the lender and the borrower.

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What is the loan interest rate in general? ⦁ Propcap 嘅利息按揭，利率係幾多

It varies between 6.5-10% per annum. The rate is highly dependent on the quality of the property and its value. 

The financial status of the borrower will also be taken into consideration. The borrower may have to go through a credit check from Trans Union in Hong Kong and Equifax in the UK. 

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Who is eligible to apply? ⦁ 有冇規定邊啲人先可以申請Propcap嘅投資按揭

Whether you currently reside in Hong Kong or the UK as a non-resident landlord, you can still apply for a mortgage for your buy-to-let property via Propcap. We understand some Hong Kongers have yet to find a job in the UK, but they are still welcome to apply. This is because the loan we grant is dependent on the valuation of the property they plan to buy, after it has been assessed by certified surveyors. 

Application is also made easier for Hong Kongers because our loan officer speaks Cantonese, Mandarin and English.

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What is the breakdown of the costs if borrowing from Propcap? ⦁ 除咗按揭利息，我仲要預算邊啲開支

On top of the interest repayments, borrowers should be prepared for the following costs:

• Surveyor valuations: ~£400-500 + VAT
• Legal fees and first legal charge: ~£1500-2500 +VAT
• Loan application fee: Up to 2% of the loan 
• Insurance: Subject to the master scheme of the building
• Propcap platform fee: HK$5000 per annum