- Client: International borrower based in the USA with UK citizenship
- Property: Kensington property valued at approximately £3.4 million
- Challenge: Required a competitive remortgage despite being based overseas and receiving income from the USA
- Finance: Five-year fixed-rate mortgage at 2.6% with a 0.5% arrangement fee
Remortgaging a high-value London property can become more complex where the borrower is based overseas and receives income outside the UK. Enness was approached by an international client looking to refinance a property in Kensington valued at approximately £3.4 million.
The client had purchased the property two years previously and was looking to replace the existing mortgage, which carried a rate of 4% at the time. The objective was to secure a more competitive rate while maintaining a longer fixed-rate period.
Although the client had UK citizenship, they were based in the USA and their income was generated there. This created additional considerations for lenders assessing the application, particularly around overseas income and the client's international financial circumstances.
The existing lender was also unable to provide the five-year fixed-rate structure the client wanted. With the client seeking greater certainty over the cost of borrowing, an alternative lender was required.
Enness approached a UK private bank with experience of international borrowers and discussed the client's wider circumstances. The lender was prepared to consider the application despite the client's US residency and income being generated overseas.
Following negotiations, the private bank offered a five-year fixed-rate mortgage at 2.6% with a 0.5% arrangement fee. This provided the client with a longer period of fixed-rate certainty while replacing the existing 4% mortgage.
The case demonstrates how UK mortgage applications for overseas-based borrowers can require specialist lender access, particularly where the property is high value and income is generated outside the UK.
For international clients looking to refinance UK property, specialist mortgage finance can help identify lenders able to consider overseas residency, foreign income and more complex international circumstances.
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, property suitability, valuation and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise. Where income is received in a foreign currency, exchange-rate movements may affect affordability and the cost of mortgage repayments.
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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.
