Acquiring a mortgage for an Indian national with no UK credit file

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THE SCENARIO

We have a celebrated track record of helping foreign nationals obtain UK mortgages. One of my recent clients was from India and was looking to purchase a family home to begin a new life in London. He had just transferred from a job in New York and was advancing in a career in investment management.

The house he was buying was a beautiful family home for his wife and two children and was valued at £1.35million, for which he was seeking a loan of £850,000.

However, there were several issues with this case. Firstly, my client had only resided in the UK for 2 months meaning a limited time to build up a strong credit profile. Secondly, since he had not yet started his new job in London, his record of income & bonuses had been paid in USD. Considering the Prudential Regulation Authority (PRA) changes to the treatment of foreign currency income, this meant an extra hurdle to overcome.

Furthermore, the funds for the deposit of the property were given to my client as a gift from his family in India. Banks can be a little sceptical of this and much prefer for a deposit to be paid by income or UK based assets. Evidently, there were going to be several hoops to jump through to get this deal over the line.

OUR SOLUTION

It was clear to me that some thoughtful research was required here, and that it would be necessary to look across the whole of the lending market. Given the complexities involved, I opted to review what both private banks and high street lenders were able to offer. I have an excellent relationship with the higher value lending team of a high street bank of which I have a trusted contact.

I managed to arrange a very attractive rate of 1.94% for a 5-year fixed term over a 30-year period, which was an ideal result for my client offering both value for money and long-term security. We could have approached a private bank, however, this would have incurred larger arrangement fees which seemed less attractive. Using a high street lender avoids these fees despite the complexities of the deal. In fact, the lender in question was willing to structure an arrangement that factored in my client’s income and bonuses paid in a foreign currency to meet their affordability assessment.

Not only was I able to arrange a smooth mortgage process for my client at a very satisfying rate, but I also referred him to our insurance department and connected him with a trusted solicitor partner of mine to close out the deal. My client was delighted with the multiple services that Enness and I could provide.

 

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