I was recently approached by a successful client with an international profile, who wanted to talk about the options for refinancing his home in the UK.
This client owned a stunning property in a Prime Central London location, valued at £2.5million. He currently had both a first and a second charge mortgage against this property, creating a total existing debt of £1.185million. Second charge finance is often relatively expensive, so this client was keen to refinance to consolidate these charges. This client hoped to arrange a like-for-like mortgage, which meant the loan to value (LTV) would be fairly low at under 50%.
However, this client’s background meant that a great many lenders would not be able to work with him, despite the relatively low LTV. He was a Zimbabwean national and was still resident in Zimbabwe, although the property was a residential and not a buy-to-let. He was also self-employed, which created a further complication, as he did not have the standard ‘accounts’ to use as proof of income, which is generally required by banks when considering self-employed clients.
OUR SOLUTION
Fortunately, I felt confident that our London brokers—who regularly deal with international, self-employed investors—would be able to find a solution. I referred the case over to them and they began contacting lenders they felt could be a good match for this client.
This lender is used to working with international clients who have complex profiles, and they, therefore, understand that it is not always possible for clients to present standard documentation. They were therefore happy to lend by looking at an accountant’s letter and bank statements which demonstrated this client’s income.
The Enness team in London were able to achieve exactly what this client had looked for. The debt was consolidated into one loan and would be charged at a rate of 3% + 1-month LIBOR on a 36-month term.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
