Many options for remortgaging a property in UAE



I bought an apartment in Dubai Marina a few years ago but looking at my paperwork it seems I am paying a higher interest rate on my mortgage than those I see advertised. Do Dubai banks allow people to remortgage and, if so, is this an option without paying a great deal of money? CD, Dubai

It is certainly possible to remortgage, to change lender, provided there is sufficient equity in the property. For an expat, the maximum loan to value on a property valued at up to Dh5 million is 75 per cent, although Emiratis can borrow up to 80 per cent. The first step is to approach the current lender, point out that the rate being paid is uncompetitive and ask for a reduction. As it is good business practice to retain good customers, you may get a reduction, especially as rates have fallen in the past few years, and I have known this to happen in a number of cases. If you decide to remortgage, note that the lender can charge a fee for repaying the mortgage early. The Central Bank has officially limited the redemption penalty that any lender can charge and this supersedes any existing mortgage contracts. The penalty can be no more than 1 per cent of the loan amount, or Dh10,000, whichever is lower. There are other costs when remortgaging including the lender’s arrangement fee, of 0.5 per cent to 1 per cent and a valuation fee to the amount of Dh2,500. It is important to confirm all the charges up front to ensure it is worthwhile changing lender.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only

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Price, base: Dh914,000

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Federer's 19 grand slam titles

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Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.

  • It’s So Easy
  • Mr Brownstone
  • Chinese Democracy
  • Welcome to the Jungle
  • Double Talkin’ Jive
  • Better
  • Estranged
  • Live and Let Die (Wings cover)
  • Slither (Velvet Revolver cover)
  • Rocket Queen
  • You Could Be Mine
  • Shadow of Your Love
  • Attitude (Misfits cover)
  • Civil War
  • Coma
  • Love Theme from The Godfather (movie cover)
  • Sweet Child O’ Mine
  • Wichita Lineman (Jimmy Webb cover)
  • Wish You Were Here (instrumental Pink Floyd cover)
  • November Rain
  • Black Hole Sun (Soundgarden cover)
  • Knockin’ on Heaven’s Door (Bob Dylan cover)
  • Nightrain

Encore:

  • Patience
  • Don’t Cry
  • The Seeker (The Who cover)
  • Paradise City