Case Studies & Articles
Location: London, UK
9th August 2021Acquiring Terms for a Swiss National with no Current Income
Location: Kent, UK
From bases in Zürich and Geneva, Enness brokers every type of UK mortgage. Enness regularly arrange UK mortgages for Swiss nationals, UK expats living in Switzerland and for other nationalities who reside in Switzerland and who wish to purchase UK property. Enness can broker:
The UK’s very buoyant property market has long attracted Swiss investors to purchase property that they go on to rent out. London remains an especially popular location for buy-to-let investments, but other leading cities and regions of the UK also make excellent locations for buy-to-let property purchases.
A UK buy-to-let mortgage is very possible for Swiss residents (regardless of whether you are a British expat, Swiss national, or another nationality, but you reside in Switzerland). However, the process can be slightly more complex than if you were a UK resident.
The first thing to understand is the UK’s buy-to-let market. Most UK mortgages for a buy-to-let property are ‘unregulated’ mortgages, which means that you are the owner of a property you neither plan to live in nor rent to a family member. Unregulated mortgages have different affordability rules than regulated mortgages, which can impact what you will be able to borrow in relation to your property purchase.
For most Swiss residents buying UK rental property, you will be planning to use the rental income to cover your mortgage repayments. Lenders will be looking to see rental income is higher than your mortgage repayments by a considerable margin. The excess coverage will vary from lender to lender but expect rental income to need to cover the mortgage by at least 110%, but more likely in the range of 150%.
A quirk of the UK buy-to-let mortgage system is that the figure your lender would like to see in rental income (which includes the excess mortgage coverage) doesn’t necessarily reflect the mortgage amount you will actually pay. For many Swiss resident buyers, a broker like Enness, who can help you understand what lenders are looking for and how to present your case is often invaluable.
Especially as you are based in Switzerland, lenders will also want to assess your income carefully in relation to a buy-to-let property. Swiss income or salaries tends to be higher than average UK income (given the much higher cost of living). Provided you are making a sensible purchase in terms of affordability, your income is unlikely to hamper what you can afford to buy. However, you must ensure lenders understand your expenses, especially if you are borrowing from a UK creditor. Given that Switzerland is so much more expensive than the UK, some lenders can baulk at your regular costs without an explanation and careful clarification of your outgoings.
UK lenders like to lend to seasoned investors, and many will want to ensure you have a plan detail how you will handle the maintenance and marketing of the property from abroad. If you have a portfolio of property in the UK, it can be easier to borrow based on your experience in the space. However, providing concrete information about finances, income and affordability will still be necessary, given lenders can be concerned that more extensive rental portfolios can present more risk than landlords with fewer properties.
If you are a first-time buy-to-let borrower, Enness will still be able to secure a mortgage for you, although you may find you will not be able to borrow as much as a more experienced investor would.
Top slicing is also an option. Top slicing is used if the rental income you will derive from your UK property won’t cover the mortgage. In these cases, lenders will usually look at your salary to determine if you can borrow more, using a mix of rental income and your personal income to cover the mortgage. Here, how you present your case to lenders is paramount. Given you most likely generate income in Swiss francs (and potentially in other currencies) and you will probably have other financial commitments, how you explain your plans to lenders is often the difference between getting a mortgage or not. Top slicing adds a level of complexity for Swiss residents, given lenders will want to ensure that you can afford to pay the mortgage and meet your commitments (given the international element, this will be particularly important). Not every lender has an appetite for allowing international borrowers to top slice, so Enness’ network of lenders and ability to negotiate on your behalf is likely to be particularly helpful in these cases.
Whatever you are looking to buy in the UK and whatever your personal situation, nationality or financial background, Enness will be able to secure you the best rates and terms for your UK buy-to-let mortgage. We specialise in mortgages in the UK and beyond.
The UK mortgage market is one of the most liquid and competitive in the world. Some lenders can cater to every borrower, and often Swiss residents will find they have a considerable choice of lenders – often more than in the domestic property market in Switzerland.
Ultimately, what your UK mortgage will cost will depend on your financial situation and how much you are looking to borrow.
Swiss residents buying high-value property (costing between £1-2 million) can generally benefit from tracker mortgages from 2% per annum. Enness has negotiated two-year fixed-rate mortgages from 2% per year, and five-year fixed rates can be secured from around 2.1% annually.
If you have a more unusual situation (you are a British expat living in Switzerland, run your own business, want to buy particularly high-value property, or are at retirement age), working with Enness can make the UK mortgage application process much easier. Not every lender can cater to non-resident buyers with more complex borrowing requirements, and navigating lenders alone can be exceptionally tricky. With access to all the lenders who can offer non-resident UK mortgages, Enness will be able to find you the very best rates and terms.
Your broker will cover all the options with you and present you with the most advantageous finance package that suits all your needs. Get in touch to find our mortgage rates in the UK and beyond.
The UK mortgage market is incredibly competitive, and Enness can use this competition to your advantage. For Swiss residents in a very solid financial position, it usually means that Enness can secure very cheap financing deals, even if you want to borrow a considerable amount to buy UK property.
There are many UK mortgage options for Swiss residents, and the package that will make the most sense for you will depend on your financial situation and background. Enness will review your assets, income and overall net worth and talk you through what is likely to be the cheapest and most flexible non-UK resident mortgage package for you.
For many Swiss residents buying property in the UK, high-net-worth mortgages are a popular option. In essence, anyone that is considered a high-net-worth individual has more flexibility from lenders. In such cases, the rules around affordability, minimum income requirements and your expenditure will not hold as much sway with lenders – you can effectively opt-out of regulated oversight. Lenders will still analyse your finances carefully and want to ensure you are making a purchase that you can easily afford, but you will often find there are benefits to these packages.
These mortgages are possible if you have a regular yearly income that amounts to the equivalent of £300,000. They are also a possibility if you have assets that amount to the equivalent of £3 million (your principal residence cannot form part of this total net worth to be eligible).
Lenders like to see very regular and steady income from non-resident borrowers. Any income structures that deviate from this can make it challenging to access the cheapest package or borrow as much as you would like. Multiple income streams, multi-currency income, income from trust structures, or a ‘lower’ income that is heavily supplemented by big bonuses can hamper your chances of borrowing as much as you like. In some cases, it can inhibit your ability to borrow at all.
Enness can help Swiss residents access UK property finance with unusual or complex income. Your broker will make sure lenders understand your financial background and circumstances, rather than simply taking your situation at face value, as many are apt to do without more incentive to look closer or understand the whole picture.
Enness will analyse your assets and financial background to help you understand the best option for a UK mortgage, who the best lenders are, and how to show your application in the best possible light.
Regardless of your nationality, your broker will be able to help secure high-value UK mortgages if you are based in Switzerland, and:
If you fall into one of the above categories (or a similar one), you will want a broker who has the experience and understanding to secure a mortgage for you. Enness knows this area of the market inside out. Enness’ broker will help you prepare your application and will always negotiate the best terms on your behalf.
Switzerland is known for its business-friendly environment, and many Swiss nationals, Swiss residents and UK expats living in Switzerland set up businesses or work for themselves. While working for yourself offers lots of flexibility (and is often very lucrative), lenders can tend to approach applications from entrepreneurs and self-employed individuals with caution. This caution is likely to be amplified if you are also a Swiss resident rather than a resident in the UK where you are hoping to buy.
Most lenders will base what you can borrow on your past three years’ tax returns if you are self-employed or an entrepreneur. Sometimes this can provide only a surface-level view of your actual profitability (you may not pay yourself all the revenue you generate, for example), or you have large amounts of capital invested into the business which will be paid back in the future.
Securing a UK mortgage can be complex if you are self-employed or an entrepreneur. It is also more challenging if you are based in Switzerland and are trying to contact lenders in the UK one by one in search of the best deal. If you are based in Switzerland and work for yourself in any capacity, how you present your case to lenders is of utmost importance. Lenders often need more insights into your situation and help to understand the solidity of your finances. Often, niche and smaller lenders are better able to cater to you than high street banks and other mainstream lenders.
However much you are looking to borrow, your broker will be able to present your application to the lenders that can cater most advantageously to you. Your broker will always ensure you are offered the best UK mortgage based on your hard work and profile.
If you are one of the 40,000 British nationals living in Switzerland, buying property in the UK is often easier and more plausible from an investment perspective than buying in Switzerland. You may not know how long you will stay in Switzerland, have the proper permit to allow you to purchase Swiss property, or you may already own a Swiss property but wish to buy investment property in the UK. Buying real estate in the UK will often see your money go a little further in terms of what you can purchase and the choice of properties available for your budget. Enness specialises in expat mortgages in the UK.
Getting a UK mortgage as a British expat should be easy, but it’s rarely as straightforward as you expect. Mainstream lenders can approach non-residents with more caution, especially if your income is in Swiss francs. Buying prime property, high-value property or adding to a buy-to-let property can be tricky.
Enness works as a trusted partner on the ground in the UK, acting in your best interests to secure the most competitive UK expat mortgage for you. Whatever you are looking to buy and however much you are looking to borrow, Enness will be able to coordinate, negotiate and source the very best UK expat mortgage for you.
Enness works with Swiss-based high-net-worth individuals and families who want to buy high-value property in the UK. We specialise in finding mortgages for non UK residents.
Whatever your background or situation, you will want to secure the best mortgage rates and terms for your UK property purchase. While securing a UK mortgage as cheaply as possible is often a priority, you may also have other requirements. Securing flexible terms, borrowing for a period of time that is convenient for you (but is perhaps non-standard), borrowing from certain lenders, or something specific, like no early repayment fees, can also be important. Enness will build and deliver a finance package that meets all your needs as precisely as possible and ensures your headline mortgage costs are as low as possible.
Enness will start the mortgage process by understanding your plans, circumstances and requirements. Based on what you tell your broker, this will set the stage for the lenders Enness will approach on your behalf. Sometimes these will be mainstream lenders in the UK. In other cases, they will be private banks, niche lenders or Swiss banks – the institution that is the best fit for you is likely to depend on your background and assets.
Enness will negotiate the terms and rates of your UK mortgage for you, if possible, securing one or more offers for you to compare. Your broker will then talk you through your options and help you understand what constitutes the best offer – sometimes, a marginally more costly mortgage will be more suited to your needs. Enness will talk you through all the aspects of the offer, the process, as well as any potential risks and pitfalls.
When you are ready to accept an offer, Enness will communicate this to the lender and will submit your mortgage application for you. Your broker will remain on hand at every moment of the transaction to ensure your needs are met, troubleshoot for you if required, and ensure the transaction runs smoothly and is as stress-free as possible.Schedule A Callback
The UK is home to one of the most liquid, competitive, and complicated mortgage markets in the world.
There are hundreds of mortgage providers who lend in the UK, from major international banks to niche building societies and alternative lenders. Each lender has their own specialisation and position in the market where they excel. They also have lending criteria, interest rates, processes and oddities which are specific to them.
The UK has a considerable number of lending channels. There are regulated mortgages, unregulated mortgages, buy-to-let finance, bridging finance, commercial mortgages and more. It’s easy to see why the lending market is so complicated. The UK’s finance options are plentiful.
There are huge pools of liquidity (some of it incredibly cheap) and you can enjoy flexible lending terms. If you are a foreign national, expat, a high-net-worth individual, are self-employed, have significant assets but relatively low taxable income or anything in between, the UK mortgage market will have an option for you.