75% LTV UK Mortgage For An American National

• Client: American National and Resident
• Property: Central London property
• Property Value: £1,360,000
• Loan Amount: £1,020,000
• LTV: 75%

Enness was approached by an American national and resident who was preparing to relocate to the UK for work and needed finance to purchase a property in London. The client was looking for a 75% LTV mortgage and, importantly, wanted a structure without early repayment charges to provide greater flexibility as they planned for their longer-term financial position and retirement.

The transaction was time-sensitive, as the client wanted to complete the purchase before relocating to London. However, having previously been based in the US, the client was unfamiliar with the UK mortgage market and the process involved in securing property finance in the UK. Finding a lender that could accommodate both the client’s international background and specific requirements was therefore essential.

US nationals can face additional considerations when applying for UK mortgages, particularly because lenders need to take account of international income, tax and reporting requirements. While some mainstream lenders are able to accommodate American borrowers, their product ranges and underwriting criteria may be more restrictive than those available through specialist lenders and private banks.

In this case, Enness identified that a private banking route was more appropriate. The client required a bespoke approach, particularly given the request for no early repayment charges. Enness approached suitable private banks and presented the client’s circumstances and requirements to lenders with the flexibility to consider the application on a more individual basis.

Enness successfully negotiated a £1.02 million mortgage at 75% LTV. The facility was structured on an interest-only basis with a five-year tracker rate, while the lender also agreed to provide the client with no early repayment charges. The client was not required to place assets under management with the bank as part of the arrangement.

The transaction was completed in line with the client’s relocation timetable, allowing them to secure their London property before moving to the UK. Enness also managed the process with minimal involvement required from the client, allowing them to focus on the practical demands of relocating across the Atlantic.

This case demonstrates how international borrowers can benefit from specialist mortgage structuring when purchasing property in the UK. Requirements around nationality, residency, product flexibility and repayment terms can all influence which lenders are available. A lender that is comfortable with international borrowers and willing to take a more tailored approach can provide greater flexibility than a standard high street mortgage.

For borrowers unfamiliar with the UK mortgage market, comparing lenders and understanding the differences between available mortgage structures can also be particularly important. Enness can assess the circumstances of an international borrower, source suitable lending options and help compare the terms available, subject to lender criteria.

Risk Warning:
Mortgages carry risks. Interest rates can change, particularly where a tracker or variable-rate mortgage is used, which may increase monthly repayments. With an interest-only mortgage, the capital borrowed remains outstanding until the end of the term and will need to be repaid through an appropriate repayment strategy. Failure to meet repayment obligations could result in enforcement action and the loss of the property used as security.

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