I was recently approached by a non-domiciled (non-dom) client living and working in the UK, who wished to purchase her first UK buy to let property. My client had come across Enness online, after searching for a specialist non-dom buy to let solution to her borrowing needs. The property in question was a flat in West London, with a value of £445,000, which my client wished to acquire as a buy to let.
Given my client is a non-owner occupier, this presented a difficulty in securing finance for her, as a lot of buy to let mortgage lenders do not like this kind of borrower as there is a risk that the client could move into the property in question.
Further difficulty arose in that my client had been residing in the UK for less than 3 years, is self-employed and only has one year’s accounts. This minimal UK footprint, added to my client’s non-dom status, meant that I needed to source a lender who would consider worldwide assets and income.
In order to overcome these problems, I presented the case on the basis that if my client wanted to live in the property, then she could afford a cheaper, residential mortgage, and so the lender was satisfied that this was a true investment.
I also made sure to use a lender that could underwrite internationally, and enable me to use international income to prove that my client did not solely rely on UK income, and had other income streams she could choose to remit to the UK if necessary.
The lender I used to secure the loan was an international private bank, with whom I have worked closely with in the past on a number of particularly tricky deals. With the benefit of my good relationship with the lender, I managed to secure a 5.4% variable rate over a 25-year term for my client, making this non-dom buy to let mortgage possible for my client.