Own a Philippine Home Loan Program

This allows both Filipinos and non-Filipinos residing and working abroad to purchase residential units in the Philippines. Properties that can be acquired under the program are:

• acquisition/purchase of lot
• house and lot
• condominium
• townhouse or row house
• house construction/improvement
• re-financing/take-out from other financial institutions in the Philippines

How are the eligible borrowers?

• Filipinos living abroad who have maintained their Filipino citizenship
• Natural-born Filipinos living abroad who have lost their Filipino citizenship (limited to a maximum lot area of 5,000sqm)
• Foreigners/Non-Filipinos (limited to the acquisition of condominium units only where the common areas are owned by the Condominium Corporation,i.e. alien interest in such corporation should not exceed 40% as required by Philippine law)

The loanable amount shall be the lowest of:

• the borrower's paying capacity; or
• the borrower's actual need; or
• cost of the project to be financed subject to the following limits

What will be my interest rate?

• variable
• base rate* plus 5% effective rate up to 10 years
  * base rate by Bank of England Base Rate (as of 9th July 2007 is 6.25%)

A. Send a complete application package to PNB together with supporting documents and fees. This will include:

1. Loan application which includes your Personal Financial Statement, Collateral Appraisal/Reappraisal Authorization, Credit and Financial Information Authorization and Declaration of Purpose Statement (you can download these form from this website)
2. Non-refundable application fee of £100
3. Appraisal fee of £100
4. Clear photocopy of valid passport, duly authenticated by a lawyer, Philippine Embassy or by an Officer of PNBE
5. Original certificate of employment, indicating the commencement of employment and present salary.
   • If self-employed: 3 years income tax returns evidencing consistent profits will be required.
     • Copy of business registration
     • Audited financial statements for past three years
     • Bank statements of business accounts for past six months
6. Latest bank statements of current/savings account for past six months
7. Payslip for past six months
8. Credit card statement for past six months
9. If married, a copy of marriage certificate
10. Statement of account from Mortgage bank

In order to obtain a proper appraisal of the property, the following items should be obtained & forwarded to PNB:

1. Certified true copy of Transfer/Condominium Certificate (TCT/CCT) of Title (may still be in the name of seller) and Master Deed of Declaration and Mother TCT.
2. Lot Plan certified by Geodetic Engineer
3. Location/Vicinity Map
4. Realty Tax Declaration
5. Reservation Agreement, Contract To Sell or Conditional Deed of Sale (if borrower has tendered a down payment)
6. For house construction, complete architects plan specification of the proposed house/project and detailed cost estimate of the proposed house/project with detailed quantity take-off of each structure.

B. Upon receipt of the complete application package, a formal appraisal report will be requested through PNB Manila and PNB (Europe) shall evaluate the credit worthiness of the loan applicant. Analysis will be conducted in accordance with existing credit standards, taking into particular consideration the applicant’s character, capacity to pay and stability of residence/employment.

C. Once the loan is approved by Head Office, the decision will be conveyed to the applicant in writing.

D. Upon final approval, legal documentation will be prepared. Loan related documents will be signed by the borrower in U.K. A Special Power of Attorney appointing an "Attorney-in-Fact" (AIF), will be required notarized by the Philippine Embassy.

Upon receipt by PNB Manila of all signed documents, the real estate mortgage is registered and annotated on the title (already in the name of the buyer), the standing order is issued and loan proceeds are released to the seller. Real estate property titles are kept at PNB Manila for safekeeping and copies are forwarded to PNB (Europe) Plc for the branch and buyer’s files.

Yes. PNB’s Own a Philippine Home Loan” can be used to refinance existing Peso mortgages. Refinancing through PNB’s program will usually result in a lower interest rate and lower monthly amortization's.

We can refinance your existing peso mortgage loans up to 100% of the outstanding balance of the loan provided that the outstanding balance does not exceed 60% of the appraised value.

What if I am a Filipino citizen but my husband/wife is not? Are we eligible to purchase property with your loan program?

Yes. However, under Section 7, Article XII of the Philippine Constitution, foreigners may not acquire private land. Therefore, title to the property will be in the name of the Filipino spouse. For condominium units, the certificate of title may be in the names of both Filipino and foreigner spouses.

We want the house and lot to be in the name of our mother in the Philippines but we, her children, wish to borrow and pay the loan here in the U.K. Can we avail of your loan ?

Yes. But your mother would have to sign the loan as a “Grantor of Collateral”. This means that although she is not a borrower on the loan and does not have to pay back the loan if her children default, she is authorizing the use of the property she owns as “collateral” and is fully aware of the risk of foreclosure on the property if her children do not repay the loan.

Is this loan open only to residents of the UK?

Yes

What if I am a temporary worker in the U.K. on a working visa, can I purchase property under your program ?

The answer to this shall be determined on a case to case basis, depending on the prospective stability of U.K. employment, the current and future assets of the borrower and other factors. In general, this program was created for those Filipinos and foreigners who wish to buy Philippine real estate and are PERMANENTLY working in the U.K. It is this stable stream of future dollar income which the bank shall look to as its primary source of repayment on the loan.

What if I am a former Filipino and have now become a British Citizen, what kind of property may I purchase under your program?

As a former Filipino citizen, you are entitled to purchase private real estate with a maximum of 1,000 square meters. Foreigners, on the other hand, or children of Filipino parents born in the U.K., are entitled only to purchase condominium properties wherein common areas are owned by the condominium corporation.

To download an OPHL application form, please click here.

Call us at 0207 397 1351/1353/1356/1346

Email us at loans@pnbeurope.co.uk