Remortgage of a £1 Million UK Property for British Expat Based in the Netherlands

• Client: British expat living in the Netherlands with income received in euros
• Property: UK residential property valued at approximately £1 million
• Challenge: Existing lender initially declined the refinance due to overseas residency and a complex household income position
• Finance: 55% LTV remortgage on a five-year fixed rate of 2.24% at the time

Remortgaging a UK property can become more complicated when the borrower is resident overseas and receives income in a foreign currency. Enness was approached by a British expat living in the Netherlands who was looking to refinance a residential property in England valued at approximately £1 million.

On the face of it, the property and level of borrowing were relatively straightforward. The client was looking to borrow at approximately 55% loan to value (LTV). However, the international nature of the application created additional considerations.

The client was resident in the Netherlands and received income there in euros. The household income position also needed careful consideration, as the client’s spouse was retired and the couple wanted the mortgage assessment to reflect their income following retirement.

The client’s existing bank had initially declined the application after being informed that the client’s primary residence was in the Netherlands. This meant that an alternative approach was required to demonstrate the client’s wider connection to the UK and establish whether the lender could reconsider the application.

Enness reviewed the circumstances and presented the client’s wider UK connections to the lender. This included demonstrating that, despite being resident overseas, the client had retained strong ties to the UK and regularly returned to the country.

Following this additional information, the same bank that had initially declined the application was prepared to reconsider the case. The lender was satisfied with the client’s circumstances and agreed to proceed with the remortgage.

The resulting facility was structured at 55% LTV against the £1 million UK property, with a five-year fixed rate of 2.24% at the time.

The case demonstrates how UK mortgage applications for expats can require careful presentation where residency and income are based overseas. The outcome also highlights that a previous decline does not necessarily mean that finance is unavailable, particularly where additional information can provide a lender with a fuller understanding of the borrower’s circumstances.

For British expats looking to refinance UK property while living overseas, specialist mortgage finance can help identify suitable lenders and present the application in a way that accurately reflects the borrower’s 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 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. Where income is received in a foreign currency, exchange-rate movements may affect affordability and the cost of mortgage repayments. Borrowers should also consider how changes to household income could affect their ability to maintain repayments.