Private bank foreign national mortgage under £1m without assets under management

CONTACT FARRYL

An introducer (a large developer whom I already look after financially) recently introduced a client to me who was a foreign national looking to purchase a property in the UK.

This client was a high net worth Saudi national, with a professional background as Head of Banking for a Commercial Bank. He was looking to purchase a property in South West London to be used as a holiday home for him and his family. The property he was interested in was a new build development worth £960,000, and he required a mortgage at a relatively high loan to value (LTV) of 70%.

The fact my client was a foreign national earning foreign currency was immediately a challenge, especially because he had no track record of owning property in the UK. The majority of lenders will tend to always steer clear of foreign currency because it does not apply to UK tax rules, so I knew the high street was almost guaranteed to refuse my client’s application.

Private Banks are much more likely to accept complex cases such as this, yet they often require Assets under Management as a trade-off for the loan. Despite this, my client did not want to provide the bank with Assets under Management, and because his loan was less than £1 million, it would typically be too small for a private or specialist bank to consider anyway.

Despite the number of challenges we consequently faced, I already had a strong professional relationship with one private bank in particular, so the head underwriter was willing to be flexible and take a view on my client’s profile.

As such, the loan was agreed with this private bank, not only ensuring my client received the best solution to meet his financial needs but also reinforcing my strong relationship with them for future clients.

OUR SOLUTION

I managed to secure a 2 year fixed rate of 2.39%, with 12 months interest cover held on accounts. This was an excellent result for my client at an extremely competitive rate.