Small mortgage vs personal loan vs currency swings

[Testaburger]

Dear all,

I live and work in Hong Kong. I'm paid in HK dollars, which is pegged to the USD. I'm in the process of procuring a house in the UK. I am weighing the options of having a small UK-based mortgage of about £30k or a personal loan in HK, from my HKG bank.

We plan on paying it off within 3 years, if it's a mortgage, but we'all probably get a 10 year term for flexibility.

We're considering the prospect of an unsecured loan and the higher interest rates against the setup fees and all that's involved in a mortgage.

Also, as the loan is in HK Dollars, the repayments (relative to our income) will remain fixed, versus the prospect of the GBP strengthening against HK and increasing our outgoings if GBP strengthens. It's speculative, I know, but do the gurus here think that the pound has reached something like the bottom?

I open the floor to those far more knowledgable than I, as to what you would do.

Thanks in advance.

[Sarnie]

Testaburger said:

Dear all,

I live and work in Hong Kong.
I'm paid in HK dollars
I am weighing the options of having a small UK-based mortgage

Your chances of securing a UK mortgage as some one who lives and work in HK and paid in HK dollars, is slim..............VERY slim in fact.

[Testaburger]

It's already approved. It's HSBC premier, with HSBC HK acting as a middle man with correspondence etc.

The rates aren't the very best but not terrible, but given the intended term I'm not too worried about that. Moreso the questions I posted.

Edited to add: I've already bought a house with a UK mortgage under the same employment circumstances before. I have since sold that. So, I'm not concerned about getting the UK mortgage. That was a far higher LTV so a mortgage was the only option. Now, the loan amount is far smaller, and about 10% LTV.

I understand you're very knowledgable in this field, Sarnie, so I'd be interested to hear your thoughts.

Edited by Testaburger on Thursday 23 February 21:17