- Client: Bulgarian National & Resident
- Property: New-build flat in Central London
- Property Value: £850,000
- Loan Amount: £520,000
- LTV: 61%
- Product: 5-year fixed
Enness was approached by an existing client, a Bulgarian national and resident, who was looking to refinance a UK investment property. The new-build apartment, located between Tech City and the Square Mile, was valued at £850,000 and was let on an assured shorthold tenancy.
The property had originally been purchased using bridging finance, with £560,000 still outstanding to the bridging lender. With the client looking to move onto a longer-term buy-to-let mortgage, the challenge was finding a lender comfortable with both their overseas residency and income generated in Bulgaria.
Although the existing bridging facility had provided flexibility when the property was acquired, the client wanted greater certainty over their longer-term financing. A standard buy-to-let mortgage offered a more suitable structure, but the client had no significant financial footprint in the UK beyond the investment property itself.
Enness already held the necessary documentation from the previous transaction, allowing the refinancing process to move forward efficiently. We approached lenders with experience of working with international borrowers and identified a specialist bank that was comfortable considering the client’s Bulgarian income and wider circumstances.
The lender offered a £520,000 mortgage on a 61% LTV basis, with a 5-year fixed rate of 3.99%. The available mortgage was slightly below the amount required to fully repay the existing bridging facility, so the client covered the shortfall from their savings.
The refinance allowed the client to move away from short-term bridging finance and onto a longer-term mortgage structure, while retaining the UK investment property. The fixed-rate element also provided greater certainty over the cost of borrowing for the initial five-year period.
This case demonstrates how international borrowers can face additional challenges when refinancing UK property, particularly where their income and financial interests are based overseas. Enness works with international borrowers seeking UK remortgage solutions and can identify lenders willing to consider different residency, nationality and income circumstances.
If you are considering refinancing an existing property or moving away from bridging finance, speak to a mortgage specialist to discuss your circumstances and explore the options available.
Risk Warning:
Mortgages and buy-to-let finance are secured against property. If you do not keep up with repayments, the property may be at risk of repossession. Fixed-rate products provide payment certainty for the fixed period, but the applicable rate and payments may change when that period ends.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, affordability and lender criteria. Terms and availability will vary depending on individual circumstances.
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.
