11:27 AM, 25th May 2017, About 4 years ago
Buying investment property in the UK is becoming a more achievable goal for many ex-pats as a weakened pound has increased the buying power for those who are remunerated in other currencies.
There are many lenders that offer mortgage finance to British ex-pats who want to invest in residential property, but ex-pat mortgages often come with a number of restrictions. For example, most lenders require applicants to already own a home in the UK before they will consider funding a Buy to Let investment and many lenders will only lend to ex-pats who reside in specific countries or meet a minimum income requirement.
We, however, work with specialist lenders and there are products that will take a more flexible approach and can consider ex-pats who do not currently own a home in the UK, provided that they are British nationals and can demonstrate that they have owned in the UK previously.
Ex-pats living in any country can now also be considered with no set minimum income criteria. For example, the a recently provided a mortgage to a self-employed ex-pat with variable income who lived in Zimbabwe.
This customer wanted to borrow £300,000 to buy a detached house in Kent valued at £875,000 and the lender was able to offer a mortgage, with the option to service interest, or roll-up interest for payment on redemption of the loan.
The option to roll-up some or all of the interest payments is a useful feature for borrowers who want to manage cashflow or are buying a low yielding property where the rental payments do not meet the interest coverage ratio (ICR).
However, on this occasion, the rental income was sufficient to cover the stress test for the loan balance and the borrower chose to service the interest.
The lender that helped this customer lends on a fixed rate basis and customers can select a term of up to 5 years. Loans of up to £5m are routinely approved and larger advances are considered by exception.
If you do need any assistance with an ex-pat mortgage or any type of property loan please complete the contact form below and we will be happy to help.