What was the situation?
I was approached by my client who wanted help funding the purchase of a beautiful, detached family home in North London. They were looking to purchase the property for £1.5 million with a 15% deposit.
What was the issue?
There were four aspects to this case that made it more difficult to place.
Firstly, the client had moved to the UK just 18 months prior to applying for the mortgage. Secondly, the client did not have permanent rights to remain in the country so lenders automatically imposed a 25% deposit. Thirdly, my client was an IT Contractor who was making the move into a permanent role but hadn’t yet started. Finally, although the deposit was held in the UK, much of the deposit was gifted from family who resided outside the UK.
This reduced the number of lenders that would consider my clients application.
What was the process?
As part of the process, I had completed a diligent application which established the client’s income structure and situation. This helped the pre-approval process as we were able to paint a detailed picture of the client’s situation with the decision makers.
We were able to demonstrate the clients experience in this sector and convince a lender to work off the future employment contract. Furthermore, due to my longstanding relationship with the lender, I was able to negotiate and reduce the minimum deposit requirement from 25% to 15%.
What was the solution?
Through communication and clarity of the client’s situation, were able to obtain a mortgage that carried an initial rate of 1.4% for 2 years. The mortgage was set on a full repayment strategy over 35 years which was a key priority for the client as this is their long-term home. It also provided them with peace of mind knowing that the mortgage was being repaid and therefore reducing with each payment. The full loan amount of 85% was granted so they could fund the move and not need to delay the purchase.
During the completion stages of the mortgage, we also worked with the acting solicitor and lender to ensure that the processes around anti-money laundering (AML) checks – which are required with foreign national mortgage applications – were able to be signed off.
Overall, the client was delighted with this solution as they had been told that they needed a 25% deposit which would take another 18/24 months to save.
Lending solutions with LDN Finance
Are you a foreign national looking to purchase property in the UK, but have a complex income structure? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our specialist brokers have extensive experience in providing creative solutions to secure large loans for our clients.
We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.
Get in touch with us to organise an initial consultation.