Residential Mortgage for UK Expat Business Owner Earning Self Employed US Income

Residential Mortgage for UK Expat Business Owner Earning Self Employed US Income

Area
Surrey
Capital Raised
£889k

Our client owned a thriving UK business and had moved to the US three years ago to set up a similar company in the States and tap into the American market.

Having established their US company to the point of self-sufficiency, they were now returning to the UK and looking to purchase a family home in Surrey.

They were converting their US property into a buy to let purchasing the UK residential home as a second property.

The Scenario

Due to their complicated income structure and overseas earnings, they were experiencing a few difficulties with their mortgage application:

  • Although they owned a UK and US company, they only took income from the American business in dividends and nothing from the UK business.
  • Their income was classed solely as foreign, self-employed earnings, which can be difficult to get finance for.
  • They also couldn’t leverage their UK company earnings as they weren’t taking a salary or dividends from the British business.
  • But, they needed proof of a higher income to reach the loan value they wanted – an £889k loan on a £1.185m property, coming to roughly a 75% loan to value (LTV).
  • They also had no UK tax filings for the last 2-to 3 years due to the way they were drawing income.

The Solution

We sourced a lender who could look at the potential of both of their businesses:

  • We used the clients’ US self employed income (paid in dividends)
  • And also leveraged their UK company’s net profits, even though they hadn’t withdrawn any income from the company in recent years.

Although this reduced the number of mortgage lenders willing to take on our clients’ case (increased their loan size potential and wanted to keep their interest rates at a minimum by putting down a higher deposit), we managed to find them a standard mortgage with excellent terms.

And we didn’t need to use a private bank and pay higher fees to keep the rates low on this complex case.

We secured:

A 5 year fixed-rate mortgage with a low-interest rate of 1.14% - is an excellent deal for a returning UK ex-pat with self-employed income in a foreign currency.

The US Self Employed Income Hurdle

Tax filing requirements are different in the US and UK, so you don’t have a standardised comparison for mortgage lenders to use in their calculations - and this can cause an issue.

If you’re working in the US, you’ll know the tax year is in line with the calendar year, while ours runs from April to April.

For a mortgage application, you’ll also need to supply different tax documents for each proof of income - US or UK.

Our clients in question had already changed the trading period for their UK company to align with the US tax year - you can do this via Companies House.

But, this meant that their first tax year from the change only ran for nine months (from April to December), and their next tax year hadn’t been completed yet, and wouldn’t until December 2021.

How did we get around this?

We liaised with our client's accountant and the mortgage lender to consolidate a year’s worth of financial reporting for the UK company based on previous accounts. It was accepted, and the loan was approved.

More information on UK expat mortagages, Clifton Private Finance

 

Louis Levine

Finance Executive CeMAP

Bristol

0117 457 7862

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George Abouzolof

Finance Broker

Bristol

0117 403 3444

Do you need help sourcing your own property finance?

I have extensive experience securing UK mortgages for expat clients. Book a free telephone consultation with me at a time to suit you 

book a telephone appointment with one of our brokers today

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Bridging Team

Clifton Private Finance

Bristol

0117 959 5094

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Sam Baker

Finance Broker

Cardiff

0117 959 5094

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As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you 

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Fergus Allen

Finance Broker

Cardiff

0117 959 5094

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Jacob Phipps

Finance Broker

Bristol

(+44) 0117 959 5094

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I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you 

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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. customDatabaseField-8455

Mathew Phillips

Senior 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.

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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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I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.

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Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

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I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you 

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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.

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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. customDatabaseField-8455

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