- Client: UK national and UK resident
- Property Value: Circa AED 10 million
- Loan-to-Value (LTV): 55%
- Interest Rate: Competitive fixed rate
A UK national and UK resident with an existing residential mortgage in the UK approached Enness to arrange finance for the purchase of a second home in Dubai valued at approximately AED 10 million. The client spent a significant amount of time in Dubai and wanted to acquire a property that could serve as a second residence while continuing to maintain their existing UK property and mortgage.
The key challenge was finding a lender that could take a holistic view of the client's financial position. In addition to the proposed Dubai mortgage, the lender needed to consider the client's existing UK mortgage, associated property costs and wider expenditure when assessing affordability.
The client's income structure also presented an additional consideration. While their anticipated income position was expected to strengthen later in the year, it did not fit the standard profile typically preferred by many Dubai lenders. The client also had additional wealth and assets that could provide further financial support towards the mortgage payments if required.
Enness reviewed the client's circumstances and approached lenders that could take a broader view of their overall financial position. We successfully negotiated a mortgage representing 55% of the property's value, allowing the client to proceed with the AED 10 million purchase while retaining a level of borrowing appropriate to their circumstances.
The lender was comfortable considering the client's anticipated income position alongside their wider wealth and assets. This holistic approach allowed the lender to assess the client's ability to manage both the existing UK mortgage and the new Dubai property rather than relying solely on conventional income criteria.
The mortgage was structured with a competitive fixed interest rate, providing greater certainty over the client's monthly repayments for the agreed fixed period. This was particularly important given that the client would be managing property commitments across two jurisdictions.
This case demonstrates the importance of specialist advice when arranging international mortgages for high-net-worth clients. Cross-border property purchases can involve additional considerations around income, existing liabilities, residency, currency and lender affordability criteria, particularly where the client already owns property in another jurisdiction.
Enness specialises in helping international clients finance property purchases in Dubai and other global markets. Our UAE offering supports clients navigating the complexities of cross-border property finance, with solutions tailored to their wider financial circumstances.
For UK residents considering a second home or investment property in Dubai, the right financing structure can help balance the new borrowing with existing UK commitments. Speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for information and illustrative purposes only and does not constitute financial, tax, legal or investment advice. Finance is subject to lender criteria, valuation, affordability and individual circumstances. Exchange rates and property values can fluctuate, and borrowers should consider the implications of holding property and borrowing across different jurisdictions.
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.
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.
