- Client: Successful self-employed international investor resident overseas
- Property: UK buy-to-let property valued at more than £1 million
- Challenge: Required 75% LTV as a non-UK resident with limited UK ties
- Finance: Buy-to-let mortgage on a five-year fixed rate of 3.99% at the time
International investors can face additional challenges when seeking finance for UK buy-to-let property, particularly where they are resident overseas and have limited connections to the UK. Enness was approached by a successful self-employed international investor looking to purchase a rental property in London.
The client had an annual income in the region of $1 million and had built a successful career through self-employment. Having identified an opportunity within the UK buy-to-let market, the client was looking to purchase a property valued at more than £1 million.
The client wanted to borrow up to 75% loan to value (LTV), meaning a relatively substantial level of borrowing was required for a non-resident buy-to-let investor. The client’s overseas residency and limited UK ties also meant that many conventional lenders were unlikely to be suitable.
Finding a lender with an established appetite for international borrowers was therefore important. The application required a lender comfortable assessing an overseas applicant’s income and wider financial circumstances while also considering the proposed UK property investment.
Enness referred the application to its London broking team, who identified a lender with experience of international buy-to-let applications. The lender was comfortable considering the client’s overseas circumstances and the level of borrowing required against the property.
The resulting facility provided the required buy-to-let mortgage at 75% LTV, with the mortgage arranged on a five-year fixed rate of 3.99% at the time.
The structure gave the client a route into the UK buy-to-let market while retaining the level of leverage required for the purchase. It also demonstrates how access to specialist lenders can be particularly valuable for international investors whose circumstances fall outside the criteria of conventional UK mortgage providers.
The case highlights the importance of specialist property portfolio finance expertise when arranging UK property finance for overseas investors. Residency, income structure, UK connections and the required LTV can all influence which lenders are able to consider an application.
For international investors considering UK buy-to-let property, specialist UK mortgage expertise can help identify lenders with experience of non-resident borrowers and more complex international profiles.
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. Buy-to-let investments involve risks including changes in property values, rental demand, void periods, maintenance costs and financing conditions. Where income or assets are held in different currencies, exchange-rate movements may also affect the value of assets or the cost of borrowing.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
