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Case profile
Our client wanted to buy a property in London. However, because he is a British expat paid in a foreign currency, finding a mortgage was a challenge.
The client’s wife and children currently reside in Sweden, although for work the client is primarily based in another country. He was looking to purchase the property as pied-a-terre for personal use and for their daughter who will be studying in the UK in the next 12 months.
The client receives his salary in a foreign currency which is paid into an offshore account. An additional layer of complexity is that due to the nature of his work he could be anywhere in the world on any given day. These factors made finding a suitable mortgage complicated.
Solution
Using our expertise in placing large mortgages and our strong relationships with private banks we were able to find a lender who could offer the client a suitable foreign currency mortgage.
In order to put the client’s case forward successfully to lenders, our first step was to find a country in which to base the client’s application. This was tricky as the client was so mobile. We chose Sweden, where is family lived, as this was his strongest tie; it was also a country preferred by most lenders.
The purchase price of the property was relatively high at £1,050,000. This meant we were able to approach a private bank that would be flexible and take a view on the client’s work and travel itinerary. As a result we successfully secured a British Ex-pat 5 year fixed rate mortgage for the client at the favourable rate of 2.6%.
Deal Highlights
| Loan amount: | £735,000 |
| Rate: | 5 year fixed rate 2.6% |
| LTV: | 70% |
| APR: | Overall cost for comparison 4.2% APR representative variable |
| Term: | 19 years |
| Type: | Capital and interest repayment |
| Loan purpose: | Purchase property |
| Lender’s arrangement fee: | 1% of loan amount |
| Early repayment charges: | 3% in Years 1 & 2, 2% in Years 3 & 4, and 1% in Year 5 of loan amount |
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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 4.2% APR representative variable based on 19 years at 2.6%. Lender’s arrangement fee is 1% of the loan amount. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
largemortgageloans.com is a trading name of largemortgageloans.com Ltd. A fee of up to 1.17% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £1,000,000 the fee would be £11,700 of which £2,925 would be payable on application. The precise amount will depend on your circumstances.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
