BARBADOS MORTGAGES

Caribbean Mortgage Services was the first independent mortgage brokerage to be set up in Barbados and continues to play a pivotal role in the Barbados mortgage industry with innovative services, product and public awareness. We work closely with all the leading players in real estate sales and in the provision of property finance, but particularly with the lenders.

  Barbados has around ten mortgage players but few of them provide non-resident mortgage loans. These have to be in a foreign currency and be approved by the Central Bank of Barbados. In recent times the terms and conditions relating to non-resident loans have improved with longer repayment terms and lower interest rates, but the Barbados mortgage market is conservative and has a limited range of product and a culture of low risk. Applications are carefully scrutinized and have to be of high caliber to be accepted. The market does not provide buy-to-let, non-status, flexible or tracker rate applications.

  Applications take time to process and if they are not presented with all the relevant information it will prolong the process. All mortgagors require legal representation and the mortgagee also has lawyers acting on their behalf. The applicant pays mortgagor legal fees and also those of the mortgagee. The legal process is complicated by the addition of the vendor's lawyers and the challenge of getting three legal firms to work effectively together at the same time. All mortgage applications are subject to a satisfactory valuation report provided by a valuer approved by the lender and paid for by the applicant.

  Repayment terms up to 30 years are available and the maximum Loan-to-Value is 70%, but may be lower depending on the circumstances. No LTV above 70% is available. Borrowing in US$ has been the most attractive currency in the past few years where the interest rate is linked to the three-month US$ LIBOR rate plus the lender's mark-up. Current rates are available on request.

  For more information telephone Anita Ashton at 246 228 2188 or by email at anita@caribbeanmortgages.com.