Complex Property Purchase For High-Net-Worth Joint National

• Client: High-net-worth British/American joint resident
• Property: Residential property worth almost £2 million
• Loan: Over £1 million
• LTV: 65%
• Product: Base Rate tracker at 1.24% over base, interest-only

Enness was approached by a high-net-worth client looking to purchase a main residential property for themselves and their partner. The client had recently moved country but had continued working for their original employer overseas. This created a more complex affordability assessment, as the lender needed to be comfortable with the ongoing income while also taking into account that the client was paid in a different currency.

The international nature of the client’s income was therefore a key consideration. We needed to identify a lender that could assess the client’s employment and income structure holistically and provide sufficient comfort that the income would remain consistent following the move. This was particularly important as the client wanted to borrow the full amount required to purchase the property.

The client also wanted to keep their monthly mortgage payments as low as possible and therefore preferred an interest-only structure. Their proposed repayment strategy was to downsize the property at the end of the mortgage term, as they did not have other UK assets that could be used as a repayment vehicle.

Given the client’s high-net-worth profile and the complexity of their circumstances, Enness approached a British private bank that could take a more holistic view of their financial position. We worked with the lender to provide the additional letters and confirmations required to demonstrate that the client’s income was sustainable and expected to continue following the international move.

Following discussions with the lender, Enness secured a mortgage of more than £1 million at 65% LTV against the residential property, which was valued at almost £2 million. The facility was structured on an interest-only basis with a competitive Base Rate tracker at 1.24% over base, in line with the client’s preference for a flexible tracker product and lower monthly payments.

The solution also enabled the client to establish a private banking relationship with the lender, providing a structure suited to their wider financial circumstances and international income.

This case demonstrates the importance of working with a lender that understands international income and can assess a borrower’s circumstances beyond a straightforward domestic affordability calculation. For high-net-worth borrowers who have moved internationally but retained foreign employment or income, specialist lender selection can be particularly important when arranging a mortgage.

Enness works with private banks and specialist lenders to arrange UK mortgages for borrowers with international income, assets and complex financial structures. To discuss your circumstances, speak to a mortgage specialist.

Risk Warning:
Interest-only mortgages require the capital balance to be repaid at the end of the term, so borrowers should have a credible repayment strategy in place. Property values can fall and foreign currency movements may affect the value of income when assessed against sterling liabilities. Failure to maintain mortgage repayments could result in the lender taking action against the secured property.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.