- Client: Australian nationals and UK residents
- Property value: £1.405M
- Loan amount: £1.12M
- LTV: 80%
- Rate: 2.04% fixed for 5 years
Enness was approached by two Australian nationals and UK residents looking to purchase a residential property in the UK. They wanted to maximise their borrowing, requiring a mortgage of £1.12M against a property valued at £1.405M, representing an 80% LTV.
The clients’ circumstances made the application more complex than a standard high-LTV mortgage. Neither held a UK passport, while the majority of their income was generated through businesses they owned overseas. Finding a lender comfortable with both the level of borrowing and the international income structure was therefore key.
At 80% LTV, the clients were seeking a relatively high level of leverage, while the lender needed to be comfortable with the borrowers’ ability to service the debt. The international nature of their income added another layer to the underwriting process, requiring the lender to take a broader view of their financial position.
Enness identified a lender prepared to consider the clients’ circumstances and negotiated a five-year fixed-rate mortgage at 2.04%. As part of the arrangement, the clients were required to hold $100,000 with the lender to establish an international banking relationship.
The resulting facility gave the clients the high LTV they required while providing the certainty of a five-year fixed rate. It also demonstrates how international borrowers with overseas income can access UK mortgage finance when their circumstances are presented to an appropriate lender.
Enness specialises in arranging high LTV mortgages for international clients and borrowers with more complex financial circumstances. The availability of finance, LTV and terms will depend on the borrower’s circumstances, property, income and individual lender criteria.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, valuation, due diligence and lender criteria. The terms described relate to a historical transaction and are not indicative of current or future pricing.
Risk Warning:
Taking out a high LTV mortgage involves financial risk. If you do not keep up repayments, your property may be at risk of repossession. Borrowers should consider affordability carefully, particularly where income is generated overseas or circumstances may change.
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.
