- Client: High-net-worth Pakistani national and resident, who was self-employed
- Property: London buy-to-let property valued at £1.3 million
- Challenge: Overseas residency, self-employed income, no UK footprint and a first-time UK buy-to-let investment
- Finance: £910,000 mortgage at 70% LTV, fixed at 3.99% for five years over a 15-year term
UK buy-to-let property can be an attractive option for international investors looking to establish or expand a property portfolio. However, arranging mortgage finance can become more challenging when the borrower is based overseas, has no established UK financial footprint and derives their income from self-employment.
Enness was approached by a high-net-worth Pakistani national who was resident in Pakistan and looking to make their first investment in the UK buy-to-let market. The client was self-employed and had built a successful career providing services to the Pakistan government. They were looking to acquire a London property valued at approximately £1.3 million and wanted to maximise the mortgage funding available.
The client’s circumstances meant that a conventional buy-to-let application was unlikely to be straightforward. They were a non-UK resident with no existing UK footprint, while their income was generated overseas through self-employment. The fact that this was also the client’s first UK buy-to-let investment further reduced the number of mainstream lenders likely to consider the application.
Another important consideration was the requirement for lenders to establish the source and sustainability of the client’s income. As with any international mortgage application, appropriate identification, income and financial documentation would need to be provided before a lender could assess the application.
Enness therefore focused on lenders with experience of working with international borrowers and overseas income. Rather than relying solely on conventional high-street buy-to-let criteria, the application was presented around the client’s wider financial position, experience and ability to support the proposed borrowing.
The client’s affordability was not the primary concern. The key challenge was finding a lender prepared to consider the combination of Pakistani nationality, Pakistani residency, self-employed overseas income, lack of UK footprint and first-time buy-to-let status.
Following discussions with specialist lenders and private banking contacts, Enness secured mortgage funding of £910,000 against the £1.3 million London property. This represented 70% loan to value (LTV).
The mortgage was arranged on an initial fixed rate of 3.99% for five years over a 15-year term. The resulting structure allowed the client to proceed with the acquisition while retaining a 30% deposit in the property.
The case demonstrates how buy-to-let mortgage finance can be structured for international investors where conventional lending criteria may not accommodate their circumstances. Overseas residency, foreign income, self-employment and a lack of UK financial history can all influence lender appetite, making the selection of an appropriate lender particularly important.
For international investors looking to acquire UK rental property, specialist international mortgage expertise can help identify lenders able to consider overseas income and non-UK residency, subject to individual circumstances and lender criteria.
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, property suitability, due diligence and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances.
Risk Warning:
Property securing finance may be repossessed if repayments are not maintained. Property values can fall as well as rise. Buy-to-let property investment carries risks, including changes in rental income, property values, interest rates, taxation and refinancing conditions. Overseas investors may also be exposed to currency movements when income or assets are held in a foreign currency.
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.
