Using a Mortgage Calculator to correctly assess mortgage repayments

It was sometime towards the end of 2004 that my wife and I decided to pursue our dream of buying a property in the resort island of Phuket. We had visited Thailand several times over the preceding ten years or so and had fallen in love with the country almost immediately. The people were friendly, the food was wonderful, the weather was ideal and property prices were affordable. Selecting a property was made easy by the fact that numerous English-speaking estate agents are located in and around the main town, and all of them were extremely courteous and willing to offer whatever advice was needed. In all, we visited about two dozen different condos, beachside villas and apartments, before finally settling on an idyllic bungalow located about twenty miles from the airport. Professional financial advice was readily available, and most of the brokers we spoke to were familiar with the terms and conditions adhered to by UK lending banks.

On several occasions we made use of a handy little tool known as a mortgage calculator which enabled us to determine the amount we would be able to borrow and how much the subsequent monthly repayments would be. One of the advisors even directed us to an online mortgage calculator (the name of the website escapes me but it may have been something like Go Direct), in order that my wife and I could explore the options available in the privacy of out hotel. We eventually opted for a straightforward repayment mortgage with a well known UK / Hong Kong bank and purchased the bungalow in the summer of 2005. As expected, our repayments were in line with what the mortgage calculator had led us to expect and we encountered no hidden costs or undue surprises. The physical process of moving into the bungalow (and making alterations where necessary to suit our personal tastes) was quick and seamless. It took less than two weeks, for example, to renovate the swimming pool and complete a minor re-landscaping of the garden.

Furniture deliveries were equally prompt. We now plan to spend six months per year in Thailand and are hoping to rent the property for much of the remainder. The market for short term property rental is reasonably buoyant in Thailand and a wealth of specialised agents exists both in Phuket and Bangkok. No figures have as yet been confirmed, but our feeling is that a monthly rental income of four to five hundred pounds is realistic and achievable. In conclusion, buying property overseas is obviously not an option for everyone, and for those to whom it does appeal it must be stressed that caution should be exercised with regards to local laws and tax regulations. In addition, immigration and visa rules need to be researched and understood. All in all, however, my wife and I experienced little or nothing that proved awkward and the process from start to finish was pleasant and well managed.