£1.65 Million Loan to American National with No Credit Registered in the United Kingdom

• Client: American National and Resident
• Property: UK residential property valued at £2.2 million
• Loan: £1.65 million
• LTV: 75%
• Product: Two-year fixed, interest-only mortgage at 1.69% over Bank of England base rate

Enness was approached by an American national who was planning to move to the United Kingdom and purchase a residential property. The client had established a successful business in the United States but had never previously lived in the UK and had no UK credit history.

Although the client intended to relocate to the UK, they planned to continue running their American business from the UK. Their income would therefore remain in US dollars, with funds transferred to the UK primarily to cover their day-to-day living expenses. This created a more complex mortgage application, as the client had no established UK financial footprint and would continue to receive income in a foreign currency.

Many mainstream UK lenders have specific requirements around residency, credit history and income. In this case, the client did not have the established UK credit profile or GBP income that would typically make a conventional mortgage straightforward. We therefore needed to identify a lender that could take a more holistic view of the client’s international circumstances and overseas income.

Private banks were able to offer greater flexibility, although the initial options available to the client were generally limited to around 60% to 65% LTV. Given the client wanted to maximise their borrowing and minimise the amount of capital required for the purchase, Enness explored the wider private banking market to find a lender willing to take a higher LTV approach.

We successfully arranged a £1.65 million mortgage against the £2.2 million property, achieving a 75% LTV. This allowed the client to purchase the property while retaining more of their available capital rather than committing a larger deposit.

The client also wanted to minimise their monthly mortgage payments and preferred an interest-only structure. Their longer-term plan was to downsize at the end of the 25-year mortgage term, when a larger property would no longer be necessary, with the resulting equity providing the intended repayment strategy.

Enness negotiated a two-year fixed period at a margin of 1.69% over the Bank of England base rate. The structure provided the client with initial certainty over their mortgage payments while allowing them to retain the flexibility associated with their longer-term downsizing strategy.

This case demonstrates how specialist lender selection can be particularly important for international buyers with overseas income and no established UK credit history. While a borrower may not fit the criteria of mainstream lenders, private banks and specialist lenders can sometimes take a broader view of their income, assets and overall financial position.

Enness regularly assists international clients looking to purchase property in the UK using overseas income and complex financial structures. To discuss your circumstances, speak to a mortgage specialist.

Risk Warning:
Interest-only mortgages require the outstanding capital to be repaid at the end of the term, so borrowers should have a credible repayment strategy in place. Property values can fall and exchange rate movements may affect the value of overseas income when considered against sterling liabilities. Failure to maintain mortgage repayments could result in enforcement 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, residency, income and the proposed transaction.