
Mortgage to Raise Cash for Buy to Let Purchase for Contractor Earning Japanese Yen
The Scenario
Our client approached us looking to refinance his main home to raise capital for a new investment property purchase.
He currently owned a £700k family home in Middlesex and had £300k outstanding on the existing mortgage.
He was looking to raise a further £120k by remortgaging his home, and then use the funds to purchase a Buy to Let property in the UK that would provide rental income and investment growth.
However, our client was working abroad in Japan as a contractor, and earning in Japanese Yen.
This presented 3 hurdles with his application:
- The client was spending a lot of time in Japan, and wasn’t sure if he’d still be technically classed as a UK resident for his mortgage application
- His earnings in Japanese Yen would be rejected by most mainstream lenders
- And contractor income is harder to borrow against due to it being less secure than an employed salary
The Solution
Thanks to our broker’s market knowledge, we were able to take the application directly to a lender that specialises in contractor mortgages and foreign currency applications.
While it’s unusual even for them to process an application for a contractor who is also earning overseas, through our relationship with their underwriting team we were able to make a strong case for our client.
The good news for our client was that he had:
- 12 months history of earning as a contractor
- Evidence of at least 2 previous back-to-back contracts with no gaps
- And over 6 months remaining on his current fixed term contract
This is often the golden rule for contractor income mortgages, and while there are options that we can explore if you don’t meet these criteria, having these minimum requirements will significantly increase your chances of securing a contractor mortgage.
We also ensured that the lender treated him as a UK Resident for his mortgage application, despite not being a UK resident for tax purposes.
Finally, the lender we used also agreed to raise the finance as a simple cash release, and didn’t require an agreement in place for their new Buy to Let property purchase like most mortgage providers typically would in this scenario.
Our client then had plenty of time to scour the property market and jump at any great investment opportunity he found, and with ‘cash buyer’ status behind him, he was an attractive buyer.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
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George Abouzolof
Finance Broker
Bristol
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Bridging Team
Clifton Private Finance
Bristol
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Sam Baker
Finance Broker
Cardiff
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Fergus Allen
Finance Broker
Cardiff
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Jacob Phipps
Finance Broker
Bristol
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Jack Spillane
Finance Broker
Bristol
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Mathew Phillips
Senior Finance Broker
Bristol
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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.
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Luther Yeates
Senior Finance Broker
Bristol
0117 244 5561
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Sam ONeill
Senior Finance Broker
Bristol
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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.
Book ConsultationAdam Arnott
Associate Director
Bristol
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