When looking to finance a property purchase, there are certain situations which require a specialist team of advisers on board. One scenario we deal with on a daily basis is helping foreign nationals to secure finance on UK property. Why does this prove challenging? There are a host of reasons, but often it’s due to relatively basic requirements. If you live overseas, it can be difficult to source asset and income information that UK lenders will accept and you need mortgage advisers who are experienced in this space to source lenders who are flexible and understanding of this particular market.
We recently worked with one client living and working in the Middle East who was buying their first residential property in London. The property was a new build; £150,000 had been put down as a deposit and the client had 30 days to complete the sale. Therefore, our Associate Director Mark Pattanshetti needed to find a very fast lending solution to achieve completion and ensure this deposit was not lost.
Although the client was a very high net worth individual, they had limited income and asset information. Added to that, the property was a new build which can be harder to secure financing on and the loan to value was relatively high compared to the level lenders will usually comfortably offer to foreign nationals. Finally, the speed at which the funds were required meant that the case was going to prove a challenge.
Mark approached his network to secure a bridging loan from a lender who would take a wider view on the client’s financial situation and who could operate incredibly quickly with flexible and minimal underwriting processes. They were also able to accommodate foreign nationals at a relatively high loan to value.
|Loan To Value:||56%|
|Type:||Interest only, retained|
|Lenders arrangement fee:||1.60% of the loan|
|Early repayment charges/Exit fee:||3% of the loan amount during the first 3 months only|
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Please note the Financial Conduct Authority does not regulate some aspects of bridging finance.