The MillionPlus Private Finance team regularly work to arrange large UK mortgages for high net worth foreign nationals. Our team understand that foreign nationals living and working in the UK face a unique set of challenges. As a mortgage broker with a diverse network of niche lenders we have access to the best international million plus mortgage deals and rates available.
In 2015, the UK foreign-born population stood at 8.7 million and between 1993 and 2015 the number of foreign citizens increased from nearly 2 million to more than 5 million.
The MillionPlus Private Finance team has built a specialism in arranging large, international mortgages for foreign nationals who wish to invest in UK real estate.
Recently, we worked with a high net worth US national living and working in London and looking to buy a million plus new build property as a main residence.
There were a number of challenges for our multi-millionaire American client. He owned a number of million plus properties, but had limited liquidity and therefore required a high Loan to Value (LTV) of 85%.
Secondly, our client had a complex income structure. He is paid directly from his US employer in Dollars and pays tax in the US. He has a strong salary, but two thirds is made up of non-guaranteed bonuses.
Adding more complexity, this income is deferred and vests over three years.
In order to meet affordability criteria, all of this income needed to be taken into account. However, complex income structures can be problematic for many lenders when arranging large, international mortgages.
Adding to the complexity, the London property our client wanted to buy was a multi-million pound new build flat and lenders usually restrict LTV on new builds.
As our US high net worth mortgage client was asset rich and cash poor, he only had 15% deposit available.
Due to his irregular income stream, the high net worth property investor needed the million plus mortgage to be interest only and fixed rate, which many private banks would not offer.
Want to find out more? To discuss your expat mortgage or remortgage requirements, contact the MillionPlus Private Finance team on +44 207 519 4950 email us at info@millionplus.com or complete our enquiry form.
Solution
MillionPlus Private Finance has a wealth of experience in arranging million plus international mortgages, and relationships with over 80 lenders worldwide.
Our team created a bespoke lending solution, sourcing an international private bank mortgage which fit all of our client’s requirements.
MillionPlus Private Finance’s team used our relationships to find a private bank that would lend to US citizens and assess affordability on the client’s whole income.
Our team negotiated for the client to pay the million plus mortgage on an interest only, monthly repayment basis. Annual capital down payments were allowed for, timed to coincide with the receipt of annual vesting bonus payments.
The high net worth foreign national client was delighted with his mortgage offer, and is now happily living in his new London home.
Deal Highlights
Loan amount:
LTV:
Term:
Type:
Loan purpose:
Lender’s arrangement fee:
Early repayment charges:
£4,675,000
85%
12 years
Interest only*
Residential purchase
1% of the loan amount
5% reducing annually to 1% in year 5, none thereafter. 10% penalty free overpayments per annum allowed
*Interest Only with annual capital bullet payments of £165,000 (3% of the purchase price).
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer.
Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances.
This document may not contain all the information needed for customers to make a decision and they should seek advice.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.
The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice.
