An estate agent referred a couple to Enness who were UK nationals living overseas and seeking residential finance for a property they intended to occupy when they eventually returned to the UK.
The clients were both in their 40s. One client was employed in the oil and gas sector, while the other was not employed. They wished to purchase a residential property in the UK as part of their longer-term plans to return to the country.
The property was valued at approximately £585,000, with the clients seeking borrowing of around £300,000, representing approximately 51% loan-to-value (LTV). While the relatively low LTV provided a strong level of equity, the clients’ overseas residency and income structure meant the application required a specialist approach.
The clients had lived outside the UK for approximately 10 years, meaning their recent UK financial footprint was limited. In addition, part of the household income was earned in US dollars, which can restrict the number of UK lenders willing to consider an application.
Residential mortgage options for UK nationals living overseas can be more limited than those available to UK-resident borrowers, particularly where income is earned in a foreign currency. The clients therefore required a lender with experience in assessing international residency and foreign-currency income.
OUR SOLUTION
Enness approached a specialist building society with experience in manually underwritten applications. The lender was able to consider the clients’ wider circumstances rather than relying solely on automated credit scoring and was comfortable assessing the application despite their overseas residency, subject to its lending criteria.
Enness secured a residential expat mortgage at a discounted variable rate over a five-year term, based on the clients’ intention to occupy the property when they returned to the UK. The structure provided the clients with a route to secure their future UK residence while they remained overseas.
This case demonstrates how specialist lender selection can help UK nationals living abroad secure residential finance where overseas residency, limited UK financial history or foreign-currency income may restrict mainstream lending options.
If you are living overseas and considering a future UK property purchase, Enness can help identify mortgage options suited to your individual 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, affordability, underwriting, valuation and lender criteria. Terms, rates 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.
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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.
