UK National, Dubai Resident Looking to Acquire London Property

• Client: UK national resident in Dubai with substantial overseas income and an offshore business structure
• Property: Luxury freehold London property valued at approximately £7.8 million
• Challenge: Required 70% LTV despite complex overseas income and business arrangements
• Finance: £5.46 million mortgage, split between fixed and variable-rate borrowing over a 25-year term

International borrowers with income and assets held outside the UK can face additional challenges when seeking finance for high-value British property. Enness was approached by a UK national resident in Dubai who was looking to acquire a luxury London home valued at approximately £7.8 million.

The client required mortgage funding of £5.46 million, representing 70% loan to value (LTV). While this level of borrowing can be achievable for suitable applicants, the client’s international financial structure meant that a lender needed to take a broader view of their circumstances.

The client’s business was held through an offshore structure and the majority of their income originated overseas. This created additional considerations around the assessment of income, business accounts and foreign currency exposure. The application therefore required a lender comfortable with complex international financial arrangements rather than a conventional affordability assessment.

Enness identified private banking as the most appropriate route. The London team presented the client’s wider financial position to potential lenders, focusing on their overall wealth and long-term financial prospects rather than relying solely on short-term income calculations.

A private bank was prepared to consider the application and agreed to a bespoke structure incorporating both fixed and variable-rate borrowing. This provided a balance between certainty over part of the borrowing and exposure to the prevailing Bank of England Base Rate on the remainder.

The resulting mortgage facility was £5.46 million at 70% LTV over a 25-year term. Half of the borrowing was fixed at 2.24% for five years, while the remaining 50% was arranged at 1.10% above the Bank of England Base Rate at the time.

The split structure gave the client greater flexibility than a conventional single-rate mortgage while accommodating the complexities of their international income and offshore business structure.

The case demonstrates how Dubai mortgage clients looking to acquire UK property may benefit from specialist lender access. Overseas income, offshore business structures, foreign currencies and international residency can all affect how a mortgage application is assessed.

For UK nationals living overseas and looking to finance high-value property in London, large mortgage finance can provide access to lenders with experience of more complex international borrower profiles, 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 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 borrowing or income is denominated in different currencies, exchange-rate movements may affect affordability and the cost of borrowing. A variable-rate mortgage can also result in repayments increasing if the applicable interest rate rises.