Arranging residential property finance for an overseas client can become more complex when the borrower’s nationality and location limit the number of lenders willing to consider the application. I recently assisted an Iranian client living in Dubai who was looking to purchase a high-value home in London.
The client was a successful businesswoman who had been living in Dubai since the early 1990s. Her circumstances meant that the application required careful consideration, as some UK lenders have enhanced due diligence requirements or restrictions when assessing borrowers with links to certain jurisdictions.
The client had been introduced to Enness through her son, who had previously used our services successfully. She was looking to purchase a London property valued at approximately £2.3 million and had a deposit of around £700,000, meaning she required borrowing of approximately 70% loan to value (LTV).
Her income was also substantial, at approximately $1 million per year, providing a strong underlying financial profile. The challenge was therefore less about the client’s ability to support the borrowing and more about identifying a lender comfortable with her nationality, UAE residency and the size of the proposed mortgage.
I knew that a specialist lender would be more likely to take a broader view of the application and approached the London market accordingly.
Fortunately, I was able to use Enness’ established relationships with private lenders experienced in international cases. One lender was comfortable considering the client’s circumstances and was able to provide the required financing for the London property.
The terms agreed at the time included a rate of 3% above Bank of England Base Rate, providing the client with the borrowing required to proceed with the purchase while maintaining the level of deposit she had intended to contribute.
The case demonstrates the value of specialist international mortgage expertise when a foreign national living overseas wants to purchase UK property. Lender appetite can vary considerably depending on nationality, country of residence, income, property value and the wider financial profile of the borrower.
For higher-value purchases, a million pound mortgage can also require a more tailored approach, particularly where the borrower’s circumstances fall outside conventional high-street lending criteria. Enness’ access to specialist and private lenders can be particularly valuable in such cases.
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. Where borrowing or income is denominated in a foreign currency, exchange-rate movements may also affect the sterling cost of the borrowing or associated payments.
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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.
