I recently helped a couple of expat clients who were living abroad, so they could capital raise from one of their UK buy to let properties in order to complete an onward purchase for a new home in Australia.
My clients were not current homeowners in Australia, which made this case immediately more challenging, as the majority of lenders would not be happy for the funds from the capital raise to be taken out and invested outside of the UK. This is often a problem for expats.
Not only this, my clients also had two missed mortgage payments on their credit score on one of the buy to let properties in the UK, which is usually an absolute no-go when it comes to securing finance in any case – let alone for purchasing abroad. A clean credit score was even more crucial in my clients’ situation as the lenders do not have the same power to repossess the property should they default.
Despite this, I managed to ensure my clients were an exception to the rule, largely due to a solid income, which proved to the lender that the affordability was there, despite the historical missed payments. They had also had no missed payments since, which worked in their favour.
Although this resulted in a slightly higher rate than I would usually be able to achieve, of 5.39%, this came with no early repayment charges and meant my clients would be able to remortgage at no extra charge as soon as the credit issues were cleared.
The focus on clean credit when lending internationally is not something many can usually get through, which made this even more of a success story. As a result, my clients were extremely happy with this solution, which allowed them to purchase the property they dreamed of down-under.