Can I get a UK mortgage as a foreign national?

A common misconception is that it is incredibly difficult to get a mortgage on London property if you are a foreign national. Indeed, it can be more of a challenge given stringent affordability checks requiring proof of income, which can be challenging when it is held in different currencies, or earnt in various locations.

However, Enness works with one of the largest networks of lenders in the industry, including high street and private banks, and institutional and private investors. As such, our excellent relationships enable us to secure mortgages for the most complex of cases, at the most preferable rates, and foreign national clients are no exception.

In instances where income is held in foreign currency or perhaps complicated to prove, one way a lender will take security over a loan is via assets under management (AUM). Depending on the lender, there are various assets which will be accepted; in many cases, the preferable asset is cash. However, we also work with a lender who would actually prefer to take a collection of fine art as security of the loan over cash.

We are currently working with a lender to offer our overseas buyers, specifically those based in Africa, Asia and the Middle East, an exclusive product for purchasing London property. The lender aims to offer terms on the same day as application, arranges pricing depending on circumstance and offers different repayment options;

Amortising product

  • Loan value of £250,000-£3million
  • Minimum property value of £400,000
  • Loan to value (LTV) of 75% of the acquisition price or the valuation, whichever is the lower
  • Maximum 25-year tenor up to age 70
  • Day one AUM of USD100,000, inclusive of six months’ payments to be held with the lender
  • Minimum annual total income of USD100,000

Interest only product

  • Loan value of £250,000-£3million
  • Minimum property value of £400,000
  • LTV of 60%
  • Tenor of five years’ interest only, repayable on demand
  • Day one AUM of USD100,000, inclusive of 24 months’ debt servicing to be held with the lender
  • Minimum annual total income of USD100,000

With many changes planned for 2017 – including how non-doms will be taxed on their worldwide income – and political uncertainty both globally and locally, investment into London from foreign nationals will likely need some encouragement. As such, products like these are extremely valuable.

To speak to one of our expert brokers about how we can help you purchase London property, please get in touch today.

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