- Clients: Edinburgh-based couple, UK residents and US/UK nationals
- Property: Central Edinburgh property valued at £2.3m
- Loan Amount: £890,000
- Purpose: Consolidation of existing first and second-charge debt
- Product: 5-year fixed-rate mortgage at 5.55%
Enness was approached by a couple based in Edinburgh who were looking to consolidate existing borrowing secured against their property. The clients had previously taken out first and second-charge facilities to release capital and invest in their business, supporting its growth. They were now looking for a £890,000 mortgage to refinance the existing debt into a single facility.
The case presented several complexities that needed to be considered when identifying suitable lenders. One of the clients was a US national, while the other was a UK national and resident who earned income in US dollars. The combination of a US national, foreign currency income and a Scottish property significantly narrowed the available lender pool. Many lenders have additional regulatory and underwriting requirements when considering US nationals, while some private banks are unable to lend against Scottish property due to differences in the legal and property framework.
Affordability was another consideration. Although the clients had a strong asset base and solid financial background, they did not meet the traditional affordability parameters used by many lenders. The loan amount was also below the £1m threshold at which private banks will commonly consider this type of lending, meaning that the clients' overall wealth and circumstances needed to be presented carefully to demonstrate their suitability.
Enness approached a private bank and presented the clients' wider financial position, including their significant cash reserves and overall net worth. By taking a more holistic approach to the application rather than relying solely on standard affordability calculations, the lender was able to assess the clients on the strength of their broader financial position.
Enness successfully negotiated a five-year fixed-rate mortgage against the clients' Edinburgh property, valued at £2.3m. The facility provided £890,000 to consolidate the existing first and second-charge borrowing, simplifying the clients' debt structure while providing a longer-term financing solution.
This case demonstrates how factors including US nationality, foreign currency income, Scottish property and non-standard affordability can make an otherwise straightforward refinancing requirement more complex. Enness works with private banks and specialist lenders to structure complex mortgages around the wider financial circumstances of high-net-worth borrowers.
If you are looking to consolidate existing property finance or refinance a complex borrowing structure, Enness can assess your circumstances and explore suitable remortgage and private banking solutions. To discuss your requirements, speak to a mortgage specialist.
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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.
