Enness regularly works with international borrowers seeking UK property finance, including expats and foreign nationals with limited UK residential history. A recent case involved a European passport holder who had been working as a Managing Director for a hedge fund company in Hong Kong and was looking to purchase a second residential property for his family in the UK.
The property was located in South London and valued at approximately £1 million. The borrower and his wife had already received mortgage terms through another broker, but a previous Enness client recommended that they approach the firm to see whether a more suitable structure could be identified.
The existing terms were already competitive, so the main objective was to improve the overall structure rather than simply source another product. The borrower had a strong income and established financial profile, while his limited recent residential history in the UK meant that the choice of lender was particularly important.
Enness identified a lender experienced in working with international borrowers who could consider a higher loan to value (LTV) while also offering the facility without an Assets Under Management (AUM) requirement.
OUR SOLUTION
After presenting the borrower’s financial position and employment history, Enness negotiated terms that improved on the existing proposal by increasing the available LTV and removing the requirement to place assets with the bank.
This reduced the amount of capital required towards the purchase while allowing the borrower to retain control of their wider investments. The structure also provided a more suitable arrangement for the family’s plans to establish a home in the UK.
The final mortgage was secured at a fixed rate of 3.46% for 2 years on a capital and interest repayment basis. The 15-year repayment period aligned with the borrowers’ intended timeframe for repaying the mortgage.
This case demonstrates how specialist lender knowledge can be valuable when arranging a UK mortgage for an international borrower with limited UK residential history. By considering the borrower’s wider circumstances rather than relying solely on standard lending criteria, Enness was able to identify a structure suited to their requirements. Learn more about UK mortgages for non-residents.
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.
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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.
