What was the situation?
I was recently approached by a US foreign national who was looking to purchase their first residential property in the UK. My client was a Partner at an international law firm that had seen a spike in earnings in their most recent year’s accounts and was earning a significant foreign currency income. The property in question was a stunning home in North London valued at £2.75 million, and my client was looking for a high loan to value (LTV) mortgage of £2.6 million.
What was the issue?
My client’s case was a complex one; not only were they a foreign national with visa status, but they also received foreign currency income, had a minimal deposit for such a high-value property, and required the case to be completed quickly. Consequently, it was clear traditional lenders were off the table from the outset and that we would need to approach a private bank who could take a more bespoke approach to my client’s circumstances.
What was the process?
Unlike the rigid eligibility criteria of mainstream banks, specialist lenders and private banks are able to take a much more holistic view of an individual’s finances, assets, and wealth to assess affordability. With an in-depth understanding of the high net worth mortgage space, private lenders are able to navigate the complexities presented by international clients, foreign income, and indeed the risk associated with high LTV loans with ease and at speed.
As such, we presented my client’s case to a reputable private bank, producing a detailed credit paper that took into account the client’s wider assets versus his company’s business performance.
What was the solution?
Working closely with the private bank, we were able to secure fantastic terms on behalf of my client. We secured 95% LTV on day one, with bullet repayments built-in at the end of each year for the first 5 years of the loan, bringing the LTV down to a more respectable 75%.
The private bank was able to review my client’s foreign currency income, take a view on his uptick in business performance, and make an affordability assessment on recent years’ figures. The client’s company’s income was strong and more than enough to service the loan; it was more a question of cash flow to get the transaction over the line initially. As a result, we achieved a fantastic rate of 1.89% above the Bank of England base rate (0.10%).
My client was very happy with our solution as he was able to house his young family without utilising a large portion of his liquidity at the outset of the loan, as well as avoiding heavy tax implications if he had needed to extract capital from his business.
Lending solutions with LDN Finance
Are you a foreign national looking to secure a high loan to value mortgage in the UK? At LDN Finance, we are dedicated to making the market more transparent for our international clientele. Our expert brokers do the hard work for you, navigating eligibility criteria, time zones, and foreign currency to ensure you have choice and control through every step of the process. Get in touch with us today to organise an initial consultation.