UK Mortgage for Foreign National Buying Rental Property in England

UK mortgage for foreign national buying rental property in England

Area
Leicestershire
Capital Raised
£280K

Foreign buyers can be caught in a trap when buying property in the UK: you need to have an established financial history here (a bank account, credit card, and utility bills in your name) to get finance from a UK lender. But how can you build up that history before you live here?

Many UK lenders require larger deposits from borrowers who are not UK citizens and charge higher rates and fees. But there are alternatives.

The Scenario

Our client rang from Vietnam: she’s a Malaysian national working there, going to be moving to the UK with her fiancé. She planned to buy a property in Leicestershire and rent it out for a year or so before either remortgaging as their own home or selling it.

The issues: UK lenders are reluctant to offer finance to foreign nationals who don’t have a solid financial footprint in the UK. Our client had a bank account and credit card, but no utility bills establishing her residential ties.

Plus we needed to make the affordability work. For a foreign national applying for a buy to let mortgage, most UK lenders would be looking at a 60-65% LTV. Our client had 25% of the purchase price to put down. And the rental returns on properties in the area weren’t very generous.

In addition, her intention to switch the property from a foreign national BTL mortgage once she was financially established here put her in the frame for punitive early cancellation charges. As well as another valuation and more solicitors’ fees.

The Solution

A shariah-compliant ijara mortgage from a well-established UK shariah bank offered a way around all the problems. Our client wasn’t necessarily looking for shariah finance, but this product suited her needs.

The lenders were happy to consider foreign nationals and would accept a 75% LTV. In addition, they would top-slice the affordability, and allow her to make up a small projected shortfall in rental earnings from her income.

And as a shariah lender, they would not charge an early exit penalty. Their 1.5% up-front product fee is substantial, but in line with most expat lenders, and their valuation fees often seem cheaper. There’s no option for overpayments, but that wasn’t something our client was looking for – but she could exit early without punitive charges.

In a similar situation? Please call our mortgage finance team on 0117 959 5094 or book a callback into our diary at a time that suits you.

Max Mallinson

Finance Broker CeMAP

Cardiff

0117 332 5977

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.

Book a free telephone consultation with me at a time to suit you.

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Jonathan Moffatt

Head of Business Finance

Cardiff

0203 880 8890

Do you need help sourcing your own business finance?

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Alex Morris

Private Client Adviser

Bristol

0117 332 5061

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

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Scott Dutfield

Finance Broker

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

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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Carly Cheeseman

Head of International

Bristol

0117 457 9922

Do you need help sourcing your own property finance?

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

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Nick Kerley

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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Louis Levine

Finance Executive CeMAP

Bristol

0117 457 7862

Are you looking for a similar type of property finance?

Get in touch today and find out how I can help.

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Bridging Team

Clifton Private Finance

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Sam Baker

Finance Broker

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

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

Senior Finance Broker

Cardiff

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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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. 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.

Book a free telephone consultation with me at a time to suit you.

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Alex Chambers

Senior Private Client Adviser

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.

Book a telephone consultation at a time that suits you.

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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. 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

Is your situation similar?

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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