- Client: Kenyan national and Dubai resident
- Property: Residential property in London
- Property value: £1.95M
- Loan amount: £1.37M
- LTV: 70%
- Mortgage rate: 2.1% + BBR
- Purpose: Purchase of a primary UK residence
International borrowers looking to purchase property in the UK can face additional considerations around residency, nationality, income and lender criteria. Enness was approached by a successful technology business owner who was looking to acquire a London property to use as their primary UK residence.
The client was a Kenyan national resident in Dubai, making the proposed mortgage more complex than a standard UK residential application. The property was valued at approximately £1.95M and the client was looking to borrow £1.37M, representing a 70% loan to value (LTV).
The client was also looking for a competitive interest rate. With the combination of overseas residency, nationality and the relatively high LTV, lender selection was particularly important. Not every mainstream lender is able to accommodate overseas residents purchasing UK property, particularly where the borrower’s circumstances fall outside standard lending criteria.
Enness assessed the client’s circumstances and approached lenders with experience in international mortgage transactions. The objective was to identify a lender comfortable with the client’s residency and nationality while also accommodating the required 70% LTV.
Following negotiations, Enness secured a mortgage of £1.37M against the £1.95M London property. The facility was arranged at an interest rate of 2.1% plus BBR, providing the client with the competitive pricing they were seeking.
The resulting structure allowed the client to proceed with the acquisition of the London property as their primary UK residence while securing a level of borrowing that represented 70% of the property value.
This case demonstrates the importance of accessing the right lender when an international borrower is purchasing UK property. Nationality and overseas residency can narrow the available lender pool, but specialist and private banking lenders may be able to consider a broader range of circumstances, subject to their individual criteria.
Enness works with international borrowers and entrepreneurs seeking UK mortgages for foreign nationals and non-residents. The appropriate mortgage solution will depend on factors including nationality, residency, income, assets, property value, LTV and individual lender requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, valuation, due diligence and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances. The rate stated relates to the historical case and is not indicative of current or future pricing.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage. Borrowers whose income or assets are held in a different currency may also be exposed to foreign exchange risk. Property values can fall as well as rise, and borrowers should ensure that they understand their repayment obligations and have a suitable strategy for meeting the outstanding capital.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
