What was the situation?
I was approached by a legal professional client looking to borrow £240,000, to purchase their first property for just under £700,000.
The client was a US expat, working in the City of London.
What was the issue?
The first issue we encountered was the deposit. To help purchase their first property, the client was going to be in receipt of a large gifted deposit that would be held overseas and in a foreign income at the time of application.
Secondly, as the purchase was a new build, the client needed a lender that could issue an offer in a timely manner to ensure the property could be secured in good time as there was a deadline attached to getting an offer accepted on the property.
What was the process?
The first thing we needed to do was obtain written confirmation from the lender that we could submit the application whilst the deposit funds were held overseas. This is because most lenders wouldn’t be comfortable with it, typically needing to see the funds transferred into the clients UK bank account at the time of application, therefore potentially causing unnecessary delays. However, I hold good working relationships with many contacts at various lenders, therefore was able to ensure this would not be a concern in advance of submitting an application.
The client and I also discussed strategies to reduce their increasing interest costs due to market conditions. Having discussed the client’s future income projections, including large annual bonuses and further gifted contributions from the client’s family, we decided that the most appropriate mortgage for the client’s requirements would be an Offset mortgage. This allowed the client time to reduce their interest-bearing balance, whilst maintaining liquidity and minimising their tax liability.
The client also wished to be kept informed of any changes in the lending environment post-application to ensure that the application would be updated in line with market conditions.
What was the solution?
Despite challenging markets, we were able to secure a market-leading, 5-year fixed rate offset mortgage deal with a lender who was happy to lend to a non-UK national. They were also happy with the client’s gifted deposit from overseas.
The case went from application to offer in 4 working days and once the offer was issued, the client was kept informed of all lender rate changes. Needless to say, they were delighted!
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