Simplifying a complex, international lending situation by matching client and lender
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Case Profile
Our clients were UK nationals who live in Australia and have dual nationality. They have retained a portfolio of five buy to let investment properties in the UK and also own a portfolio of buy to let properties in Australia, as well as their main home.
The mortgage on one of their buy to let investments in the UK was up for renewal and they were looking to secure a new loan. However, the situation was complex due to the fact they have dual nationalities and earn in both UK and foreign income. Additionally, this was the first time their lending would be assessed under tighter rules affecting buy to let portfolio landlords, which came into effect in 2017. (Read more on the changes here.)
Solution
Our team looked to work with a building society, with whom they have a strong relationship. As a smaller lender, the building society can be more flexible in its terms and look at lending packages on an individual, case-by-case basis.
Our clients had a very strong earning capacity of over £100,000 each per year and our expert adviser team knew that they could leverage this to create the best possible outcome. The lender agreed fantastic terms on a long-term repayment mortgage, and our clients were delighted. This was a classic example of how our expert adviser team simplified a complex lending situation by matching the clients with the right lender.
Deal Highlights
| Loan amount: | £150,000 |
| Rate: | 3 year discount rate of 2.95% |
| APRC: | Overall cost for comparison 4.40% APRC representative variable |
| LTV: | 40% |
| Term: | 15 years |
| Type: | Repayment |
| Loan purpose: | Remortgage |
| Lender’s arrangement fee: | None |
| Early repayment charge: | 3% of the outstanding loan amount in the first 3 years |
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Overall cost for comparison 4.40% APRC representative variable based on 36 payments at a discounted variable rate of 2.95%, followed by 144 payments at the lenders variable rate, currently 4.75%. Because all, or part of, the mortgage is currently, or will revert to, a variable interest rate mortgage, the actual APRC could be different from this APRC and the payments could increase, if the interest rate of the loan changes. For example, if the interest rate rose to 10.20%, the APRC could increase to 11.10%. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.
