Mortgage for a US National First-Time Buyer on a £7 Million London Property

• Client: US national with UK residency and significant income from investment management
• Property: London residential property valued at approximately £7 million
• Challenge: First UK property purchase requiring an unusually high 85% LTV, with income received in multiple currencies
• Finance: 85% LTV interest-only mortgage on a five-year fixed term at 2.54% above Base Rate at the time

First-time buyers purchasing high-value property in the UK can face additional challenges when they have an international financial profile. Enness was approached by a US national with UK residency who was looking to purchase a £7 million property in London as their first UK property acquisition.

The client worked in investment management and had a high level of income, with earnings received in both GBP and USD. The client wanted to maximise the level of borrowing available and was looking for an 85% loan to value (LTV), significantly above the level many lenders would typically consider for a property of this value.

The international nature of the client’s profile added another consideration. As a US national earning income in multiple currencies, the application required a lender comfortable assessing international income and the additional reporting considerations that can arise when dealing with US-connected borrowers.

The fact that this was the client’s first UK property purchase also meant that the application needed to be presented carefully. The required 85% LTV represented a significant level of borrowing against a £7 million residential property, making access to a lender with a flexible approach to high-value international borrowers particularly important.

Enness reviewed the client’s wider financial circumstances and identified a lender with a strong international presence and experience of complex high-value mortgage applications. The client’s income, currency exposure and overall financial profile were presented to the lender as part of the assessment.

The lender was prepared to consider the unusually high LTV requirement and agreed to provide an 85% LTV facility against the London property.

The resulting mortgage was structured on an interest-only basis with a five-year fixed term at 2.54% above Base Rate at the time. This provided the client with the level of leverage required to proceed with the £7 million purchase while maintaining the requested interest-only structure.

The case demonstrates how large mortgage requirements can become more complex when a borrower is an international first-time buyer and receives income in multiple currencies. A lender’s approach to international income, residency and higher LTV borrowing can all influence the available options.

For international buyers looking to purchase high-value property in London, specialist mortgage finance can help identify lenders capable of considering more complex circumstances and bespoke borrowing requirements.

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. Interest-only mortgages require a suitable strategy for repaying the capital at the end of the mortgage term. Where income is received in different currencies, exchange-rate movements may also affect affordability and the value of income when converted.