A recent case involves arranging a high loan to value (LTV) mortgage for foreign nationals. The clients were purchasing a residential property in the UK and were looking for a LTV of minimum 70%.
This meant we had to find a lender who was comfortable lending at such a high LTV over £1m. What is more, both clients were non-UK passport holders and almost all of their income came from their own businesses overseas.
For lenders, the challenge with high LTV mortgages is that borrowers have relatively little exposure, but the lender must take on most of the risk. If you want this kind of mortgage, expect lenders will want to know you are highly committed, and they will need to be confident in your ability to repay your loan and maintain solid finances.
High LTV borrowers often find that a party like Enness will be able to pick out the facts and details of a case that you could potentially overlook or dismiss as being unimportant if you are operating alone. Your broker will be able to present these elements to lenders and, often, facilitate negotiations and use them to secure your high LTV mortgage.
In this case, we provided a competitive solution for the client - 5 years fixed rate at 2.04%, with $100,000 to be held with the lender to open an international bank account.
Whether you are buying in the UK as a foreigner or expat or buying real estate as a foreign national in any country in the world, Enness can help you source and negotiate a highly competitive mortgage.