Overseas National Looking to Acquire UK Residential Property

• Client: Ultra-high-net-worth Malaysian national resident in Malaysia
• Property: UK residential property valued at approximately £3.9 million
• Challenge: Complex worldwide income and assets, no existing UK footprint and a requirement for 70% LTV
• Finance: £2.73 million mortgage split between fixed and variable-rate borrowing over five years

London continues to attract international high-net-worth individuals looking to acquire property in the UK, with family education being one of the reasons overseas clients establish a base here. Enness was approached by a Malaysian national resident in Malaysia who was looking to acquire a UK residential property while their children were moving to the UK for their education.

The property was valued at approximately £3.9 million, with the client seeking mortgage funding of £2.73 million. This represented a loan to value (LTV) of approximately 70%, which, while achievable for some borrowers, presented an additional challenge given the client’s international financial circumstances.

The client was self-employed and had built substantial wealth through a number of businesses operating internationally. Their income came from multiple sources and in several currencies, while their personal and business assets were spread across different jurisdictions.

The client’s Malaysian residency also meant they had no established UK financial footprint. Traditional UK mortgage lenders can apply strict criteria to international borrowers without an existing UK financial history, particularly where income and assets are held overseas.

The requested 70% LTV added another layer of complexity. Given the client’s self-employed status, international income streams and lack of UK footprint, it was unlikely that a conventional high street lender would be able to accommodate the application on the required terms.

Enness therefore considered private banking and specialist lending options. The objective was to identify a lender with an understanding of the Malaysian market and the flexibility to assess the client’s wider wealth and international business interests.

Following discussions with an international specialist lender, Enness secured a bespoke mortgage structure comprising both fixed and variable-rate borrowing. The lender was able to take a broader view of the client’s financial position and was comfortable considering their international business interests and wealth profile.

The resulting mortgage provided £2.73 million of funding against the £3.9 million property, representing approximately 70% LTV. Of the total borrowing, £945,000 was arranged on a variable rate of 1.8% above the Bank of England Base Rate for five years, with uncapped overpayments available. The remaining £1.785 million was fixed at 2.55% for five years.

The split structure gave the client a combination of flexibility and certainty. The variable-rate element allowed for overpayments, while the fixed portion provided greater certainty over a substantial part of the borrowing.

The case demonstrates how complex mortgage finance can be structured for international borrowers with worldwide income, assets and business interests. Where traditional lenders are unable to accommodate an application, private banks and specialist lenders may be able to take a broader view of a client’s overall financial position, subject to individual circumstances and lender criteria.

For international clients looking to purchase high-value residential property in the UK, private bank mortgage solutions can provide access to lenders with greater flexibility around international residency, self-employed income and complex wealth structures.

Read the UK version of this case study.