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Enness’ Offer

The UK has an exceptionally lucrative property market, and there is a wide variety of real estate on offer for non-resident buyers. London property is especially popular with Monaco’s residents, with city pied-a-terre’s, extensive buy-to-let property options, holiday homes and family residences all on offer.

Of course, there is more to the UK than just London, and the UK also offers large properties, commercial real estate, stately homes, country estates and other investment property.

Enness regularly arrange high-value UK mortgages for Monaco’s residents. Whether you have already bought property in the UK, or you are making your first investment, Enness’ expert team can broker:

  • UK mortgages for first-time buyers
  • Remortgages
  • Entrepreneur and self-employed property mortgages
  • UK property equity release
  • Debt consolidation
  • Expat mortgages for UK expats living in Monaco
  • Non-UK resident mortgages for foreign nationals looking to buy real estate in the UK
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UK Buy-to-Let Properties For Monaco Residents

The UK’s flourishing property market has long attracted foreign investors from around the world, and Monaco’s residents are no exception. Buy-to-let property is often the most sought-after type of purchase, given the potential for generating solid income from rentals, as well as the possibility of holding an appreciating asset that you can go on to sell. 

There are few restrictions on UK mortgages and foreign nationals buying property in the UK. Monaco’s residents (regardless of your nationality) are usually able to secure non-resident buy-to-let mortgages with relative ease. However, the process can be time-consuming and complex to handle, particularly if you are trying to coordinate and negotiate finance from Monaco.

For first-time UK buy-to-let buyers, it’s helpful to understand the overarching lending products available. The majority of buy-to-let mortgages in the UK are 'unregulated' mortgages. Unregulated mortgages are available to buyers who do not intend to reside in the property or rent it to a family member. The vast majority of UK buy-to-let mortgages for Monaco residents are unregulated – this is important when it comes to understanding affordability rules and how much you can borrow.

You will generally use a regulated mortgage when you want to finance buy-to-let property you plan to live in in the future, or you will rent or make it available to a family member. While less common, these mortgages are often used by Monégasque buyers who want to live in the UK permanently in the future or provide care or support for a family member who lives in the UK.

In most cases, if you are buying a property that you plan to rent out to generate income, you will most likely want to utilise your rental income to pay off the mortgage. This is a widely accepted practice, but it’s important to know upfront that lenders will want to see that the income you generate from the property rental is significantly more than your mortgage repayments.

The projected amount your lender will want you to generate in rental income will need to be significantly more than the mortgage. The excess required (usually calculated as a percentage) will vary from lender to lender, but you will usually need to cover the mortgage by at least 110%, but 150% is increasingly common. Understanding how lenders will calculate the excess and what that means you will be able to afford can often be confusing – especially if it's your first time buying in the UK. Enness can explain more about what this looks like and help you understand how lenders will calculate the excess.

Lenders will always analyse Monaco residents buying UK buy-to-let property extremely carefully, even if you have a significant net worth. As long as you can comfortably afford the UK mortgage, this analysis is unlikely to limit what you can afford to buy and what you will be offered in terms of how much you can borrow. That said, lenders – especially those based in the UK – will approach non-resident borrowers with more caution.

Living in Monaco is invariably more expensive than the UK, given that the cost of living is so much higher. While some lenders (international private banks in particular) will be very used to this, other lenders who offer very competitive buy-to-let mortgages (increasingly challenger banks and alternative lenders) can hesitate at outgoings without more context. In these cases, Enness’ broker will always ensure your lender understands your full situation, the affordability of the mortgage and the quirks of living in Monaco, providing perspective and clarification into why regular outgoings are likely incomparable with the UK.

Some UK mortgage lenders prefer lending to experienced investors, although most Monaco residents looking to buy buy-to-let property in the UK are unlikely to face any serious setbacks, even if you are a first-time lender. That said, it pays to ensure sure you have a plan in place to show lenders you have thought about how you will manage the property’s marketing, rental and upkeep from Monaco or your other bases. You may find that you cannot borrow as much as a more experienced landlord might if you are a first-time investor, but borrowing will still be an option.

Top slicing can also be an option if necessary. Top slicing refers to when the rental income from your buy-to-let property is insufficient in covering the monthly mortgage repayment. In these circumstances, Enness can often negotiate with lenders who will then consider letting you use a combination of rental income and your personal income to cover the mortgage.

Top slicing can positively impact how much you can borrow, but it is not an option for every borrower. Your broker will need to present a solid case to your lender with solid reasoning why this is the best way forward – top-slicing is not automatically approved, even if you are very wealthy. For their part, lenders will want to ensure that top-slicing is affordable and that you aren’t at additional risk of defaulting on the loan. Given that you are likely to have multi-currency income and live outside the UK, making things less straightforward, an expert like Enness who can negotiate for you will be invaluable.

Regardless of whether you are looking to buy in London or elsewhere in the UK, and however much you want to borrow, Enness will be able to help. Your broker will approach a network of over 500 lenders to obtain the most competitive UK mortgage rates and terms for any UK buy-to-let mortgage for you.

UK Mortgage Rates

UK lenders are used to working with foreign and non-resident nationals, and there is a lender to accommodate every borrower and every scenario. Many non-UK resident buyers are pleasantly surprised by the amount of choice they have when it comes to property finance in the UK. If you are a high-net-worth individual, you will find that you have an exponential choice of finance packages and lenders to choose from.

The rates lenders will offer you for a UK property purchase will depend on your financial status and the amount you are looking to borrow. Generally, the higher the loan-to-value ratio, the more your mortgage will cost, but there are still competitive deals to be had.

Monégasque residents buying UK property can often benefit from tracker mortgages starting at 2% per year on property costing between £1 and £2 million. Enness’ brokers have secured two-year fixed-rate mortgages for as little as 2% per year and five-year fixed rates for as little as 2.1% per year.

Often, getting a UK mortgage is not as easy as simply approaching your usual bank – some may not offer mortgages, and others may not have the ability to lend for international property purchases. Working with Enness will make the UK mortgage application process considerably more straightforward, helping you coordinate UK property finance from your base in Monaco.

If you have an unusual background or circumstances (multi-currency income, you are globally mobile and don’t spend much time in Monaco, you manage your own business, you are looking to borrow a significant amount, or you are retired), your broker will be invaluable. Non-UK resident buyers tend to have more limited options with lenders, and sourcing a deal alone can be time-consuming. While there will be a lender who can cater to your situation, you may not have access to them through your own network and finding a lender who can let you borrow is unfortunately not as simple as just making a few inquiries. Enness will source the most competitive rates and terms for you on the market and explain your options.

High-Net-Worth Mortgages in the UK

In general, you are likely to find you will have various options for a UK mortgage, particularly if you are a high-net-worth individual.

In particular, high-net-worth mortgages are a popular choice for many Monégasque residents looking at property finance to buy UK property. High-net-worth mortgages are available if you earn more than £300,000 each year or if your net worth is more than £3 million, excluding the value of your primary residence, wherever that is located.

Given the liquidity and significant net worth of many of Monaco’s residents, many borrowers from the Principality can opt for a high-net-worth mortgage in the UK. For this niche type of finance, affordability rules are more flexible, and you can opt out of regulated oversight. This will usually give you more options regarding what you can borrow and the types of packages you can benefit from. Regardless of your overall net worth, still expect lenders to conduct a thorough analysis of your finances. They will be looking to ensure that the mortgage repayments are feasible and you are not overstretching yourself in terms of what you are borrowing.

Overall, the best property finance package for you will be determined by your net worth, how much you want to borrow, and how liquid you are. Your broker will work with you to understand and assess your assets, income, and overall net worth before advising you on the most cost-effective non-UK resident mortgage package.

Complex Income Mortgages For Monaco Residents

Most lenders like to see a regular and steady income from non-resident borrowers. However, given some of the world’s wealthiest individuals live in Monaco, steady and ‘standard’ income is often not the norm.

You may have multi-currency income, multiple income streams, relatively little income but a very significant net worth…and so on. In general, any income structures that deviate from a standard monthly salary can make lenders hesitate, which in turn can make it challenging to access the cheapest UK property finance package or borrow as much as you would like.

Enness can help you access competitive UK property finance packages, even if you have unusual or complex income. Your broker will present your case to lenders, carefully explaining the merits and strength of your financial background and circumstances which may not be evident at first glance. Your broker will also be able to approach the lenders that can cater to borrowers with more complex income – some mainstream lenders in the UK will struggle to understand the whole picture even though your situation may be relatively common in Monaco. Alternative and niche lenders are often better able to cater to Monaco-based buyers than larger institutions.

Regardless of your nationality and where your assets are based, Enness can broker high-value UK mortgages if you are based in Monaco, and:

  • Do not have standard income streams
  • Have a complex income structure
  • If you own a business or you are an entrepreneur
  • Generate multi-currency income
  • Are the beneficiary of a trust
  • Derive significant income from investments or dividends
  • If you are retired or will retire soon
  • You will liquidate high-value assets in the future
  • Have a high net worth, but relatively little income

Whatever your background and however your income is structured, Enness can help. Your broker will look at your assets and your financial situation and will negotiate and secure the best package on the market for your scenario.

How Enness Helps Non-Residents To Buy UK Property

Enness regularly works with Monaco-based, high-net-worth individuals, brokering high-value property finance for UK real estate purchases.

Whatever your motivations for buying property, locking in the best rate and terms will be paramount. That said, the cheapest deal is often not the ‘best’ deal, and you may find that a more flexible package that is a perfect fit for your needs is better than the least expensive rates.

Enness will work to understand your requirements for a UK property deal. Your broker will then go to work negotiating the agreement that is most advantageous to you. Sometimes it will not be possible to get the exact rates or terms that you want, but Enness will make sure that you get the finance package that is closest to it. Sometimes, Enness’ brokers can negotiate what is likely to be the only deal on the market for a client who has exhausted all other options and thought lending was an impossibility.

Whatever your requirements for a mortgage, Enness will start the process by chatting with you to understand your plans, your financial background and what you are looking for in terms of a mortgage. Then, based on what you share with the team, your broker will then approach lenders on your behalf. In some cases, your broker will approach lenders in the UK, and sometimes your broker will approach private banks – either in Monaco, France, or the UK. Ultimately, the lender that is best suited to you will be influenced by your assets, global wealth and other factors, like how much you want to borrow.

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Contact Enness

Enness' brokers are experts in negotiating UK mortgages for Monaco-based borrowers. The team will be happy to talk you through your options for a UK mortgage, options for property finance and answer any questions you have. Get in touch for an informal chat.

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High 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.