Buy to Let Mortgage Brokers for Investors from the UAE

Lenders employ a range of approaches to assess affordability for buy-to-let mortgages, which also depends on how they fund mortgages and their risk tolerance limits. High street banks will typically evaluate your personal income and generally require a minimum income of £25,000. Additionally, they will not consider any rental income from your property. Private banks and some niche lenders typically review a wider range of factors, potentially categorising your income and global exposure.

Lenders typically expect rental income to be at least 1.5 times the mortgage repayments. That way, should you need it, the cover protects the lender against void or empty periods.

It's not unusual to see a wide selection of interest rates available, which include short-term trackers to long-term fixed rates. Depending on your financial situation, liquidity, or portfolio size, it will determine, to some extent, what interest rates you can afford. However, if you possess a larger portfolio, have ample borrowing capacity and don't owe any money on your properties, you are likely to obtain better interest rates.

Effectively managing a growing portfolio is a hard task. In general, lenders expect you to be in control of managing your tenants as well as cash flow. Some landlords outsource to property management companies to alleviate stress and maintain a potentially positive view when managing their portfolios with lenders.

If you are seeking a high value buy-to-let mortgage, private banks and specialist lenders usually offer the best flexibility and most tailored terms for UAE investors buying property in the UK. Typical high street banks will often provide the best deals for uncomplicated clients with a regular income, but higher regulation means they tend to have stricter lending criteria. 

High Street Banks 

These lenders have implemented stricter affordability tests, and often, bespoke lenders have limited scope. Nevertheless, Enness is sometimes able to open up flexibility through direct negotiation due to its strong relationships. 

Specialist Lenders

Specialist lenders are more often used by borrowers with complex financial situations, non-standard income, or different assets from multiple countries. These lenders are more often open to cross-border lending and less traditional applications. 

Private Banks 

Private Banks are extremely popular with High-Net-Worth Individuals, as they can provide bespoke mortgage solutions that allow for great rate attainment alongside wealth management services. Private Banks accept worldwide assets to secure mortgages and offer more tailored underwriting. The majority of private banks offer an invitation-only basis and would require introductions from Enness.

Bridging and Short-Term Lenders

Perfect for properties that need to be renovated before letting, short-term lending offers a quick and flexible way to finance renovations and changes, and obtain a standard mortgage at a later stage.

Peer-to-Peer and Alternative Lenders

Buy-to-let crowdfunding sites have emerged as an alternative means of funding buy-to-let investments, offering competitive pricing models and less stringent regulatory oversight.

International Banks

Several international banks are willing to lend directly to expatriates and investors from the UAE, provided they have private lending channels available. Enness’ extensive experience will give you access to these lenders as efficiently as possible.

Whether your project is straightforward or complicated, Enness can help you source the right lender and negotiate the best terms.

Unique challenges that require custom strategies to maximise borrowing and minimise costs. 

Where Rental Income Does Not Cover Your Mortgage: Top Slicing 

UK lenders generally require rental income sufficient to cover approximately 150% of the mortgage payment. If rental income is insufficient, some lenders will consider your income in the UAE or other personal funds to cover the difference. This is called “top slicing”. This varies from lender to lender and can become cumbersome with multiple properties in the UK. 

Renting Out Your UAE Primary Residence; If You Are Buying UK Property 

If you are renting out your UAE home as your primary residence to buy in the UK, you should check how this might affect your borrowing and mortgage arrangements. In some cases, lenders may require you to notify them if your new primary residence was previously a rental property. For UAE investors without a mortgage on their house, rental income may support your borrowing capacity to invest in the UK buy-to-let sector. You can also use offshore company structures to help mitigate UK stamp duty and ownership.

UK Property redeveloping before rental

Bridging loans are often used by many UAE investors as a funding option for redevelopment or refurbishment in the UK. By having lenders release funds in stages, borrowers can not only reduce their interest costs but also manage any personal risk associated with redeveloping a property. After or preferably as soon as redevelopments have occurred to the property, you can refinance in the financial marketplace based on the increased property value. This allows you to pay off the bridging loan while potentially lowering your loan-to-value ratio in the property, which can benefit you by securing better mortgage rates.

Meaningful buy-to-let mortgages over £3 million

As a UAE resident/expat looking for large buy-to-let mortgages in the UK, it is crucial to consider all your income streams and be able to demonstrate your international wealth to secure the mortgage you want. Often, private banks and specialist lenders will provide further product flexibility and bespoke terms on deposit amount, and if there aren’t sufficient funds available, if you have a relationship through their wealth management services to support your mortgage facility.

Enness works with UK private banks, specialist lenders, or any high-street banks with which we have a good relationship. We can often negotiate a significantly better deal with our preferred lenders for a UAE buyer with a complex financial profile.