Interest only million pound mortgage with flexible overpayment for UK expat in Bahamas

Interest only mortgage with flexible overpayment for UK expat in Bahamas

Area
Bath
Capital Raised
£1.35M

Some lenders won’t touch expatriate mortgages. Others change their criteria, leaving even their established borrowers high and dry on a standard variable rate, when their fixed term comes to an end. A well-connected broker will find the lender who will consider your circumstances in the most favourable light.

The Scenario

Our client is the CEO of a financial services company in the Bahamas who owns a £3.5M Grade II-listed rural property outside Bath where his wife and children live while the children are at school.

His fixed-rate mortgage had ended four months previously and reverted to his lender’s SVR: their lending criteria in relation to expatriate borrowers had changed and they weren’t willing to offer him a new fixed-term rate.

As a result he was paying a hefty 4.99% while he tried to find an expatriate lender who would give him the level of borrowing he needed.

Some lenders treat tax-free expatriate earnings as though they will be taxed, and then take off an additional 25% to allow for currency fluctuations. So once you’ve lost half your income to a notional highest-rate tax band, and another 25% off the top, even the most generous expat remuneration package won’t support a mortgage of this size.

And then he came to us.

The Solution

There were a few major issues that needed to be worked around.

  • The estate to be mortgaged included, as well as the main house, outbuildings and a former church which were rented out. Some lenders aren’t happy with high-value properties which have residential and commercial properties included on the same title. 
  • Our client has quite a “lumpy” salary package that varies considerably from month to month. He wanted an interest-only remortgage that offered the flexibility to overpay substantial amounts each year.
  • The set-up fees on a mortgage of this size can be substantial: a typical expat lender might charge 1.5-2%, which would add up to a hefty £20,000.

We sent our client’s CV along with the property details to a specialist building society who then felt sufficiently confident in his background, and the relatively low level of exposure, to be able to offer a very competitive three-year discounted expatriate mortgage at less than half the SVR he had been paying.

The mortgage product is interest-only, but allows over-payment of up to a substantial 20% per year, which suits our client’s remuneration pattern.

What’s more, the lender contributed £700 towards the valuation costs, and charged a flat-rate product fee of just £850.

It was a quite a complex arrangement, but we had an agreement in principle that was being actively progressed by the lender within three days.

Jacob Phipps

Finance Broker

Bristol

(+44) 0117 959 5094

Are you looking for a similar type of property finance? I specialize in helping international clients source residential and investment property finance for UK property. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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