- Client: Self-employed international business owner with long-term UAE residency
- Portfolio: Existing London buy-to-let property valued at approximately £550,000 and proposed second residence valued at £1.3 million
- Challenge: Required simultaneous refinancing and property purchase with a complex international profile and irregular income
- Finance: 75% LTV buy-to-let refinance and 70% LTV residential mortgage at 2.99% fixed for two years
Arranging mortgage finance for an international self-employed borrower can involve additional considerations, particularly where income is irregular and the client has a complex international background. Enness was approached by a self-employed business owner who had lived in Dubai for approximately 40 years and was looking to restructure existing UK property finance while purchasing an additional London residence.
The client owned a buy-to-let property valued at approximately £550,000 and wanted to refinance this property at 75% loan to value (LTV). The capital raised would assist with the purchase of a second London residence valued at approximately £1.3 million, for which the client required 70% LTV finance.
The client’s self-employed status and irregular income structure meant the application required careful consideration. His long-term overseas residency and international background also meant that identifying a lender comfortable with the client’s circumstances was an important part of the process.
Rather than approaching the application as two completely separate transactions, Enness considered the client’s wider requirements and sought a lender capable of accommodating both the buy-to-let refinance and the new residential purchase.
The lender identified had experience of working with international borrowers and more complex profiles. Before progressing with the mortgage application, the necessary onboarding and due diligence processes were completed, allowing the lender to assess the client’s circumstances and proposed transactions appropriately.
Enness was able to secure both facilities as part of a single financing package. The existing buy-to-let property was refinanced at 75% LTV, while the new London residence was financed at 70% LTV.
The combined arrangement was secured at a rate of 2.99% on a two-year fixed term at the time. This provided the client with a coordinated financing solution across both properties, allowing the existing buy-to-let asset to be refinanced while supporting the acquisition of the additional London residence.
The case demonstrates how UK mortgage applications can become more complex where a borrower is self-employed, lives overseas and has an international financial profile. Access to lenders experienced in cross-border lending can be particularly valuable where standard lending criteria do not readily accommodate the borrower’s circumstances.
For international property investors, combining buy-to-let mortgage finance with residential borrowing can also require careful coordination. The appropriate structure will depend on the borrower’s income, assets, existing commitments, property values and individual lender criteria.
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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.
