In this case, the client was a US national and wanted to purchase a new residence in the UK for circa £900,000. The desired outcome would be raising the maximum loan to value possible, which would reduce the amount of their savings required for the deposit. The client desired to keep the funds invested elsewhere, therefore, they planned to use the interest from savings and investments and only draw the amount required from their pension pot to fund the new mortgage payments and lifestyle.
Moreover, the client wanted most of the mortgage on an interest only basis, with a small portion of capital and interest repayment. This option is desirable as it takes advantage of reduced monthly payments while paying down some of the mortgage balance during the term. Therefore, they could later downsize at the end of the mortgage term and repay the outstanding balance with the sale proceeds.
The challenge in this case was that most UK lenders could not offer desirable mortgage terms due to the client's savings, investments and pensions being held overseas in a foreign currency. A further issue was that some lenders were also uncomfortable lending because the client hadn't been drawing from the total pension income to date. This means that they could not see the client already withdrawing a regular income deemed sufficient to fund the mortgage payments and lifestyle.
We managed to source a lender who was not concerned that the client's assets were held overseas, as they were comfortable that the client could transfer funds to the UK at any time. We also demonstrated that the client could draw from their savings, investments, and pensions at their discretion, which allowed the lender to offer the required borrowing amount of 80% loan to value. Finally, the lender could also provide a part interest only, part capital repayment mortgage to align with the client's preference for longer-term security over the monthly payments.
With a vast network of lenders and deep market expertise we can source and negotiate the favourable terms for our clients with complex situations. Contact us today to see if we achieve similar for you.
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.
