Related Case Studies
Location: Jersey
Value: £3,150,000
19th December 2022
Complex, Interest-Only Jersey Mortgage
Location: Jersey, CI
Value: £1,950,000
20th July 2022
Debt Raising for Jersey Trust Business
Location: Paris, FR
Value: €3,500,000
Enness’ Services
Enness offers every type of UK mortgage for Jersey-based borrowers. Financing solutions include:
- First-time buyer mortgages (where eligible)
- Remortgages
- Equity release on your UK property
- Debt consolidation
- Self-employed and contractor mortgages
- UK mortgages for Jersey resident foreign nationals
- Bridging finance
UK Mortgages: Considerations for Jersey Residents
Given Jersey’s close connections and proximity to the UK (and given the UK’s booming property market), it’s unsurprising that many Jersey-based borrowers wish to buy property in the UK. Investment property is a popular choice. Alternatively, you may want to buy a property you will live in later in life, a property for a family member and so on.
The UK’s mortgage market is one of the most dynamic and flexible in the world. In many ways, that’s a good thing. You'll find:
- There's an abundance of lenders to choose from
- You'll often be able to negotiate if you are in a solid financial position
- Lenders specialise in different parts of the market and scenarios, and they will be able to tailor financing solutions to even the most unusual situations
However, sourcing a UK mortgage can often be overwhelming, especially if you are trying to coordinate and approach UK-based lenders from Jersey. Every lender will have its own specialisation, and depending on your circumstances, not every lender will be able to cater to you. You will find that your choice of lenders is also narrower if you have a complex background. That can be anything from multi-currency income to various income sources or self-employment, for example. The type of property you wish to buy and your plans can also create challenges in some situations.
Understanding the UK lending landscape, your options and how to best utilise your existing assets - whether they are in Jersey or elsewhere – is essential to securing the best UK mortgage. Enness will assess your situation and explain which route and lenders will help you access the most flexible terms and the best rates.
UK Mortgage Advice for Jersey Residents
In an ideal world, borrowers would simply approach lenders directly for a UK mortgage. However, this isn’t always practical and won’t always result in you obtaining the best offer.
If your situation is relatively simple (both in terms of the UK property you want to buy, the mortgage you require, and your finances), approaching lenders directly can be ideal. In this situation, approaching lenders yourself may be worth exploring if you have the time and wherewithal to do so. Many international lenders have a presence in Jersey, and for plain vanilla or relatively low-value UK property purchases, they will offer excellent mortgages.
However, sometimes things may not be so simple. If you approach lenders directly, you can only judge the market based on offers you source yourself. Liaising directly with lenders can also be time-consuming and
disheartening if you are rejected – especially by a lender who you thought would be the "go-to" for you, which happens surprisingly often.
Many of Enness’ clients are hugely sophisticated and knowledgeable when it comes to financing. Even then, approaching lenders can be challenging if you aren’t sure about how best to present your situation or how to showcase your assets to their best advantage. Not every lender can cater to every situation, and where one lender won’t have any appetite for a £1 million London buy-to-let investment, another will welcome you with open arms. The trick for any UK mortgage is knowing which lender to go to, how to maximise your assets and what a lender wants to see to satisfy their lending criteria. All in all, it’s very challenging to deliver all this if you are operating alone.
Lastly, while you may suspect that private banks or niche lenders will offer you the best deals (and in many cases, you will be right), you will also find it difficult to approach these parties directly. Many of these firms prefer introductions, and some can reject applications outright if you don’t have access to the right teams or contacts who are best placed to understand and handle your request.
In situations where your background is more complex, working with a partner like Enness will be beneficial. Enness has access to more than 500 lenders and knows precisely where to go to get the best UK mortgage that meets all your requirements.
Working with Enness for a UK mortgage can be helpful when you:
- Have significant wealth, assets or income outside Jersey that you could use to reduce your overall headline rate.
- Generate multi-currency income or revenue from various sources which high street lenders can’t or won’t consider as part of your application.
- Have a relatively low monthly income, or you have a high income, but you receive it sporadically.
- Would like to explore "non-traditional" or short-term lending for your UK property finance (Lombard loans, a bridging loan, etc.)
- Derive your income from a business or if you are self-employed.
- Wish to buy a high-value property, explore a high LTV mortgage, etc.
- Have a situation that you feel puts you in the position of being able to negotiate rates and terms (potential to put AUM, you are very liquid, you will come into significant capital in the next few years, etc.)
- Have been turned down for a mortgage for a variety of reasons through your own research.
- Simply wish to save time
In many cases, you may fall into multiple categories or have a completely unique position – Enness will still be able to help. Whatever your situation looks like, Enness will help you approach lenders, prepare your application and will always negotiate the best terms on your behalf.
How Easy Is It For Jersey Residents To Get A UK Mortgage?
These days, there are plenty of options for Jersey residents to get a UK mortgage. If you are a resident of Jersey but not a British national, getting a mortgage can be marginally more complicated, but there are plenty of lenders who will be able to offer you property finance. The higher your overall net worth and the more liquid you are, the easier you will find it to borrow to buy UK property.
Enness has helped clients from nearly 80 countries to secure mortgages in the UK. Whatever your nationality or Jersey residency status, Enness will be able to secure a UK mortgage for you.
Getting A UK Mortgage As A Jersey Resident: The Process
Enness will always start by listening to your plans, learning about your financial background and getting a picture of what you would like from your UK mortgage. Then, your broker will talk you through your options and explain which lenders are most likely to offer you the complete package that will best suit your needs.
With your blessing, Enness will then approach lenders and negotiate on your behalf. Your broker will present the offers to you and explain the merits and any potential setbacks of each.
Then, Enness will submit your application to the lender. Your broker will remain onboard throughout the transaction to manage the process for you and handle any potential issues when they arise. Understanding that you are busy and that mortgages can be stressful to organise, Enness will shoulder as much administrative burden as possible while ensuring you always remain up to speed.
UK Buy-To-Let Mortgages
UK buy-to-let mortgages are naturally an attractive proposition for Jersey residents. In most cases, these will be unregulated mortgages. However, you may need a regulated mortgage if you will live in the property in the future or plan to buy a UK property that a member of your family will live in.
If you plan to rent out a property that you are buying in the UK, you’ll usually need to ensure that the rental income will exceed what you’ll pay for the mortgage by about 150%. Beware of assuming that the way a lender calculates this 150% margin will directly reflect what you will be offered for a buy-to-let mortgage. Lenders use various mechanisms to calculate this rate, and what a lender will put forward for your mortgage will depend on several factors.
Depending on what kind of buy-to-let property you are purchasing and your profile, you may also need to show you have a solid plan of action. Lenders like to see ideas for finding tenants, how you will manage the property from Jersey, and so on.
If you have a portfolio of buy-to-let properties, lenders may look for more comfort in terms of affordability and how you will manage mortgage repayments if the property lies empty for any period of time. Your broker will be able to let you know upfront if they expect this to be the case in your position.
There will be cases when the rental income you derive from your UK property won’t cover the mortgage. If this is the case, presenting your case in a strong way to lenders will be imperative. Borrowing will still be possible as long as lenders understand you can easily repay the mortgage through other means. Here your income and assets will be central to what kind of finance you can secure. "Top-slicing" isn’t uncommon for Jersey residents buying UK property, given you may have a high income, various forms of revenue, or you are purchasing a high-value UK property.
Whatever your situation or scenario, Enness will help you secure the best finance for your buy-to-let property in the UK.
UK Mortgage Interest Rates
If you are in the market for a UK mortgage, the rate you are offered will largely depend on your profile, how much risk the lender perceives there to be, your income and net worth, and your plans for your property purchase.
It’s therefore impossible to pinpoint precisely what you will be offered, but to give some context into example scenarios:
UK national (Jersey resident) with a straightforward profile and income structure. Low Loan-to-value UK mortgage of less than £2 million:
- Tracker mortgages from 1% per year
- Two-year fixed-rate mortgage starting at 1% per year
- Five-year fixed-rate mortgage starting at 1.5% per year
A well-advised UK national (Jersey resident) with a slightly complex scenario. Low loan-to-value UK mortgage of less than £2 million:
- Tracker mortgages starting from 1.5% per year
- Two-year fixed-rate mortgage from 1.5% per year
- Five-year fixed-rate mortgage from 1.8% per year
Jersey resident, non-UK national, with a complicated background (e.g., various income streams, global assets, low income). UK mortgage of less than £2 million:
- Tracker mortgages from 2% per year
- Two-year fixed-rate mortgage from 2% per year
- Five-year fixed-rate mortgage from 2.1% per year
Enness will undertake to secure you the finance you need as quickly as possible. You can expect competitive rates and terms that meet your requirements as closely as is possible. Whatever your ambitions, your broker will explore all options with you and help deliver the very best finance package for you.
Contact Enness
With an office in Jersey and headquartered in London, Enness is ideally placed to help you secure a UK mortgage. If you are considering buying UK property, or if you would simply like to understand more about your options, get in touch.
Schedule A CallbackHigh Net Worth Guide to UK Mortgages
The UK is home to one of the most liquid, competitive, and complicated mortgage markets in the world.
There are hundreds of mortgage providers who lend in the UK, from major international banks to niche building societies and alternative lenders. Each lender has their own specialisation and position in the market where they excel. They also have lending criteria, interest rates, processes and oddities which are specific to them.
The UK has a considerable number of lending channels. There are regulated mortgages, unregulated mortgages, buy-to-let finance, bridging finance, commercial mortgages and more. It’s easy to see why the lending market is so complicated. The UK’s finance options are plentiful.
There are huge pools of liquidity (some of it incredibly cheap) and you can enjoy flexible lending terms. If you are a foreign national, expat, a high-net-worth individual, are self-employed, have significant assets but relatively low taxable income or anything in between, the UK mortgage market will have an option for you.
