£3 Million Mortgage in the UK for British Expat in Dubai

• Client: British national and successful global technology entrepreneur living in Dubai
• Property: UK residential property valued at £4 million
• Challenge: Required a 75% LTV mortgage for a UK property that would be used as a second home
• Finance: £3 million mortgage on a five-year tracker rate

I recently assisted a British national living in Dubai who was looking to purchase another residential property in the UK. The client had built a successful global technology company and had substantial wealth, but his busy international lifestyle made arranging UK property finance from overseas more difficult than expected.

Like many British expats living in the UAE, the client wanted to maintain a base in the UK for himself and his family when visiting. Rather than remortgaging his existing UK property, however, he wanted to purchase a larger residential property that would better suit his requirements.

The property he had identified was valued at approximately £4 million, and he wanted to borrow £3 million. This created a 75% loan to value (LTV), which represented a significant level of borrowing for a property of this value.

The fact that the property would not be the client's primary residence also needed to be addressed. When lending to UK property owners who are resident overseas, lenders will want to understand how the property will be used. A residential mortgage cannot simply be treated as a buy-to-let facility, so it was important to demonstrate that the property would genuinely be used by the client and his family rather than being acquired to generate rental income.

I referred the case to our London team, who were able to approach lenders experienced in working with high-net-worth expats and international clients. They presented the client's circumstances and clarified that, although he was primarily resident in the UAE, the property would be retained for his own residential use and that of his family.

The team identified a British lender with a global presence that was comfortable with the client's circumstances and intended use of the property. The lender was prepared to offer the full £3 million required at 75% LTV.

The mortgage was secured on a five-year tracker rate of 1.49% above Bank of England Base Rate at the time. This provided the client with the level of borrowing he required while allowing him to purchase a larger UK property and retain a family base in the country.

I also referred the client to the Enness Insurance team to discuss appropriate buildings and contents cover. Given the value of the property and its contents, as well as the fact that the client would be overseas for much of the year, ensuring suitable insurance arrangements were in place was an important part of the wider transaction.

The case demonstrates how specialist mortgage expertise for clients in Dubai can be valuable when arranging high-value UK property finance. For British expats, the combination of overseas residency, a substantial loan and second-home use can require a lender with a more flexible approach to international borrowers.

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. Tracker mortgages are linked to an underlying interest rate, so monthly payments can increase if the relevant rate rises. Where income or assets are held in a different currency, exchange-rate movements may also affect affordability.