60% LTV Mortgage on a £2.1 Million London Property for a UAE National

• Client: International borrower based in the UAE with a spouse studying in the UK
• Property: London property valued at approximately £2.1 million
• Challenge: Required 60% LTV where the property was to be purchased in the name of a borrower with no personal income
• Finance: £1.26 million mortgage at 3.45% fixed for five years

Purchasing a high-value UK property can become more complex where the borrower has no personal income and the funding for the purchase is being provided by a family member based overseas. Enness was approached regarding a London property valued at approximately £2.1 million, with the clients looking to secure mortgage finance at 60% loan to value (LTV).

The international nature of the application created an additional consideration. One borrower was based in the UAE, while the property was intended to be purchased in the name of a family member studying in the UK. As the proposed borrower was a full-time student, there was no personal employment income available to support the mortgage application.

The required borrowing was approximately £1.26 million, making the lack of conventional income particularly significant. Many mainstream lenders rely heavily on earned income when assessing affordability, which meant a more flexible approach was required.

Enness reviewed the wider circumstances and identified that a private banking route could provide greater flexibility than a conventional high-street mortgage. Private banks can take a broader view of a client’s overall financial position and, subject to their individual criteria, may be able to consider applications that do not fit standard affordability models.

The London team approached a UK private bank with experience of handling more complex international applications. The lender was prepared to consider the proposed ownership and funding structure and was comfortable with the wider financial circumstances behind the application.

The resulting mortgage provided the required 60% LTV against the £2.1 million London property, equating to approximately £1.26 million of borrowing. The facility was arranged at a fixed rate of 3.45% for five years at the time.

The case demonstrates how large mortgage applications can require a different approach where the proposed borrower does not have conventional employment income. International residency and the source of funds can also add further considerations, making access to lenders with flexible underwriting particularly valuable.

For international families looking to acquire UK property where the ownership, income or funding structure is more complex, specialist mortgage finance can help identify lenders able to consider the wider circumstances of the application.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.

Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise. Borrowers without conventional employment income should carefully consider their ability to maintain mortgage repayments from their available resources. Where income or assets are held in different currencies, exchange-rate movements may also affect affordability and the cost of borrowing.