This case demonstrates how we can arrange a high value, high LTV ‘offshore mortgage’ to buy a UK property, using our contacts in the international private banking market. To discuss this or any other large mortgage case, please contact us
Our client, a Ukranian lawyer, earns a £150,000 salary. Her husband has retired from the City and now manages a portfolio of overseas stocks, with no UK income. They have been renting in Kent and have the chance to buy the property for £1.4million. They wish to borrow 104% of the purchase price in order to cover Stamp Duty. They also wish to arrange this mortgage without bringing any money into the UK and thus incurring tax liabilities.
It was obvious that the salary of £150,000 would not support a £1.456 million mortgage (purchase price + Stamp Duty). So our mortgage experts decided on a ‘two-part’ approach to the loan.
After researching the market, an offshore private bank was found willing to lend 70% of the property’s value (£980,000 on £1.4million) secured on the property and just under 70% LTV (£476,000 on £700,000) secured on overseas Blue Chip stocks. Even the arrangement fee was in dollars, making this a truly ‘offshore mortgage’.
Amount 1: £980,000 at Bank Rate plus 2%¹ (current rate of 2.5%) – secured at 70% LTV on the £1.4million UK property (the overall cost for comparison is APR 2.8%²)
Amount 2: £476,000 at Bank Rate plus 1.5%¹ (current rate of 2.0%) – secured at 70% LTV on the £700,000 Blue Chip portfolio (the overall cost for comparison is APR 2.6%²)
Term: 5 years
Type: Interest only
Arrangement fee: 0.75%
Contact the experts
This case study shows that it is more important than ever to use the services of a specialist large mortgage loan broker who has access to the wide range of lenders willing to finance high value UK property, someone who searches the entire market to find the mortgage that fits your personal requirements.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
¹ Please note that this deal may not be available to – or suitable for – all customers, dependent upon 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 The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it.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 letter may not contain all the information needed for customers to make a decision and they should seek advice.
² APR calculations based on arrangement fees of £10,920 and legal and valuation fees of £2,500, split equally between the 2 parts of the loan. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
largemortgageloans.com is a trading name of largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9QY which is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: Bridge House, London Bridge, London, SE1 9QR. Your initial consultation is obligation free. A fee as described below will be charged on application for a mortgage, this fee is non-refundable. We will also be paid by the lender. On mortgages up to £500,000 the fee would be £495. On mortgages over £500,000 up to £1,000,000 the fee would be £995. For mortgages over £1,000,000 and exclusive or semi exclusive schemes the fee would be up to 1% of the loan amount. e.g. on a mortgage of £2,000,000 the fee would be £20,000.