US expat requiring high LTV mortgage

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THE SCENARIO

I recently completed a case for an American client who was relocating to the UK. My client was expatriating to the UK for a new position within the same company in the financial sector, something we are seeing a lot of as people look to leave the USA in light of Trump’s Presidency, particularly as London property remains to be a safe haven for investors.

She was looking for a property to live in and needed a loan of £1.4million at a loan to value (LTV) of 80%. There were a couple of reasons for her needing a high LTV; she wanted to keep funds tied up in savings and investments, and a higher LTV helped with her cash flow. High LTVs are popular with people who work in an industry where salaries are subsidised by bonuses or tied up in other investments, this US expat mortgage was no different.

As a result of the increased demand for this, we are seeing a number of lenders enter the market who are willing to take a more holistic view of a client’s wealth, not only considering their base salary. For example, I knew of a private bank who would take a view of my client’s experience in the role – since she would be doing the same thing, for the same company, in a different location.

OUR SOLUTION

Working with the private bank, I was able to secure her a rate of 2.99% fixed for five years at 80% LTV. This is a high street competitive rate as getting 80% LTV on a US expat mortgage above £1million is very rare, and most banks would only lend 70-75% on a property at that LTV.

Not to mention she had no UK credit footprint. In addition to securing such a great rate and high LTV, we were able to add the 1% lender arrangement fee to the loan as an exception for this client – which at 80% LTV is not always possible with most banks.

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