Central London Home Remortgage for International Client

• Client: International high-net-worth individual resident in the UK with substantial overseas wealth and income
• Property: Central London residential property valued at approximately £5.355 million
• Challenge: Required a substantial remortgage while much of the client’s wealth and income was held overseas
• Finance: £3.2 million interest-only mortgage at 60% LTV, including £363,582 of additional borrowing

Remortgaging a high-value London property can become significantly more complex where a borrower’s wealth and income are generated overseas. Enness was approached by an international high-net-worth client resident in the UK who was looking to refinance a Central London property while releasing additional capital.

The property was valued at approximately £5.355 million and had an existing mortgage of around £2.85 million. The client wanted to restructure the borrowing and increase the mortgage facility to £3.2 million, providing additional liquidity alongside the refinance.

The client’s financial profile presented several considerations for lenders. A substantial proportion of their wealth was held overseas, while income was generated through international business interests and received in foreign currencies. This meant that lenders needed to be comfortable assessing overseas assets and income as part of the overall application.

The client was also seeking an interest-only structure, adding a further consideration to the affordability and repayment assessment. Although the resulting LTV was 60%, the international nature of the financial profile meant that a conventional residential remortgage was unlikely to provide the flexibility required.

Enness approached private banking contacts with experience of international high-net-worth clients and complex cross-border financial structures. The objective was to identify a lender that could take a broader view of the client’s wealth and income rather than relying solely on conventional UK earnings.

Following negotiations, the lender agreed to provide a £3.2 million residential remortgage, representing 60% LTV against the £5.355 million property. The structure included an additional £363,582 of borrowing above the existing mortgage.

The mortgage was arranged on an interest-only basis at a rate of 2.9% plus three-month LIBOR at the time, over a five-year term. No assets under management were required as part of the agreed structure.

Instead, the lender required six months’ interest cover as part of the security arrangements. This allowed the client to retain their wider assets rather than transferring funds to the private bank as AUM.

The case demonstrates how international mortgage finance can provide solutions for borrowers whose wealth, income and assets span multiple jurisdictions. A high-value property can provide substantial security, but lender appetite can vary significantly depending on the borrower’s residency, source of wealth, income structure and proposed repayment strategy.

For high-net-worth borrowers seeking to refinance a London property while managing complex international assets and income, specialist mortgage finance can help identify lenders able to consider the wider financial circumstances.

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, valuation and lender criteria. Terms, rates, LTVs, fees 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. Interest-only mortgages require a suitable strategy for repaying the capital at the end of the mortgage term. Where income or assets are held in different currencies or jurisdictions, exchange-rate movements and changes in applicable regulations may affect affordability, asset values and the cost of borrowing.