- Clients: Foreign nationals residing in the UK
- Property Value: Circa £1.5 million
- Property: UK flat in a prime location
- Repayment Structure: Part-and-part mortgage
- Rate: Fixed for five years
Enness was approached by foreign nationals living in the UK who were looking to purchase a flat in a prime location. The property was valued at approximately £1.5 million, and the clients wanted to invest in the UK property market while retaining a significant level of liquidity outside the property.
The clients spent a considerable amount of time in the UK each year and had substantial cash reserves in addition to the funds they were contributing towards the purchase. This meant they were looking for a mortgage structure that provided a balance between manageable monthly payments and reducing the outstanding mortgage balance over time.
Affordability was assessed using the clients’ overseas income, which met the lender’s criteria. However, arranging finance for non-UK nationals with overseas income and a specific repayment strategy required careful lender selection. The proposed part-and-part structure also needed to be supported by a clear understanding of the clients’ wider financial position and repayment plans.
Enness identified a lender that was comfortable with the clients’ international income and circumstances. A five-year fixed-rate mortgage was arranged using a part-and-part repayment structure, allowing the clients to maintain liquidity while making capital repayments against part of the borrowing.
Throughout the application, Enness coordinated the various parties involved and worked through the lender’s requirements to keep the transaction progressing. This was particularly important given the additional documentation and assessment often involved when income is generated outside the UK.
The resulting structure gave the clients greater certainty over their mortgage payments during the initial five-year period while allowing them to retain cash reserves outside the property. It also provided a repayment structure aligned with their broader financial position rather than requiring them to use a conventional repayment mortgage.
The case demonstrates how international buyers can require a more tailored approach when purchasing UK property. Overseas income, nationality, available liquidity and the preferred repayment structure can all influence which lenders are willing to consider an application.
If you are an international buyer looking to finance a UK property using overseas income, speak to an international mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, affordability, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances, the property and the proposed transaction.
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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.
