Mortgage for first time buyer with deposit from abroad

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I recently worked with a client who had contacted Enness over a year ago; although she did not need us at that time, she had kept us in mind for the future. My client was a 45-year EU passport holder, with two children. Although her children were not financially dependent, they were still living at home in the UK.

My client worked for a multinational company in a role that required frequent travel. A first-time buyer, the deposit for the purchase was coming from family abroad.

My client was currently renting a property to use as a base for her children to live in, but she hoped to purchase a £525,000 flat in South West London at a high loan to value (LTV) of between 85-90%. As mentioned, her job meant she spent a large portion of time outside of the UK. This can be problematic for lenders, as it can appear the property is not really the client’s main residence.

As an additional complication, my client was also paid in Swiss Francs.

OUR SOLUTION

It’s often necessary to approach bespoke lenders for complex cases, such as those involving foreign currency, as such cases are unlikely to meet high-street lending criteria. However, in this instance, a high-street lender was happy to proceed with the case because several factors made it clear my client was not a risk.

Firstly, although my client was paid in a foreign currency, Swiss Francs are considered ‘stable’ so this was not a source of concern for the lender. My client also had a strong UK credit footprint, and the fact her children would be living in the property made it clear she would be using it as her main residence, despite her frequent travel.

I was, therefore, able to secure her an extremely competitive deal; a 2-year fixed rate of 1.59% on a capital and interest repayment basis. This lender was able to offer 85% LTV, which aligned with what the client hoped to achieve. This was an excellent result, and proof of my ability to secure competitive rates for my clients.