- Client: Italian National & UK Resident
- Property Type: Terraced House
- Property Value: £765,000
- Loan Amount: £224,000
- LTV: 29%
- Interest Rate: 4.09%
Enness was approached by an Italian national and UK resident looking to refinance a residential property in Finchley. The client had recently acquired the six-bedroom end-terrace property, valued at £765,000, and planned to undertake renovation works.
The client had sufficient savings available to fund the refurbishment but wanted to retain a healthy level of liquidity rather than commit a significant proportion of their available capital to the works. Maintaining access to cash was particularly important as the client also had plans to establish a new business.
The application presented a number of challenges from a lending perspective. The client did not have conventional employment income, with their income profile instead comprising non-standard sources alongside rental income from a buy-to-let property in Italy. This significantly reduced the number of mainstream lenders that were likely to be comfortable with the application.
For borrowers with non-standard income, the choice of lender can be just as important as the headline rate. Many mainstream lenders rely heavily on conventional employment income when assessing affordability, whereas specialist and private lenders may be able to take a broader view of a borrower’s overall financial position, assets and income structure.
Enness reviewed the client’s wider financial circumstances and approached lenders with an appetite for more complex income profiles. The objective was to secure sufficient capital to support the client’s plans while allowing them to preserve liquidity for future commitments.
Using its network of specialist lenders, Enness sourced a refinancing solution of £224,000 against the £765,000 property, representing 29% LTV, at an interest rate of 4.09%. The structure provided the client with the required liquidity while allowing them to retain additional savings to fund the planned renovation and future business plans.
This case demonstrates how mortgage refinancing can be used not only to replace existing finance but also to restructure a borrower’s finances around changing circumstances and future plans. For borrowers with complex or non-standard income, specialist lender access can be particularly important when seeking a suitable refinance.
If you are considering refinancing a UK property and have a complex income structure or international financial interests, Enness can assess your circumstances and explore suitable remortgage solutions.
Risk Warning:
Mortgage borrowing carries risks. If you do not meet the terms of your mortgage, the lender may take enforcement action against the property used as security. Refinancing may also involve fees and other costs, which should be considered when assessing whether a new mortgage is suitable.
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.
