Private bank provides solution to international couple’s complex lending needs
Are you a foreign national looking for a large mortgage? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or send us an email.
Our clients were a married couple who were foreign nationals, moving to London with the wife’s job as a Partner in a law firm. They retained assets in the US and therefore would be liable for tax there, as well as their country of residence.
Our clients were looking to buy a £2 million London home and had been advised to leverage as much lending as possible on the property in order to minimize their tax burden. Therefore, they were looking for 80% LTV.
This couple’s situation was made more difficult because they wanted to complete the purchase before they moved to the UK, and they had never lived in the country before, therefore did not have a UK footprint.
The case was referred to us by another broker, as they had been unable to find a solution for the couple. This broker knew about our work in the specialist mortgage market, specifically in finding solutions to complex lending requirements for foreign nationals and non-UK residents.
We needed to find a private bank which was able to deal with international tax paying citizens and could also lend to foreign nationals with no footprint in the UK. Mindful of future interest rate rises, our clients also wanted to fix their rate.
The key was in the structuring of the mortgage. We were able to place part of the loan on an interest only basis and part repayment. The client’s income mainly consisted of partnership profits and large annual bonus payments, therefore an option was built in to pay down the loan up to 10% per year with no penalty. This would make the monthly payments more comfortably affordable. On this basis, we fixed the loan for five years and our international couple are now happily beginning their life in London.
|Rate:||2.64% fixed rate|
|APRC:||Overall cost for comparison 3.40% APRC representative variable|
|Type:||Part Interest Only / Part Repayment|
|Loan purpose:||Residential Purchase|
|Lender’s arrangement fee:||0.5% of loan amount|
|Early repayment charge:||5% for 5 years, decreasing by 1% each year|
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. Ask for a personalised illustration.
Overall cost for comparison is 3.40% APRC representative variable based on 63 payments at the lenders fixed rate of 2.64% for part interest only & part repayment, followed by 177 payments at the lenders variable rate of 3.50% for part interest only & part repayment. 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 10.50%, the APRC could increase to 7.50%.
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.