Want to learn more about getting a UK mortgage as a foreign national? Our Head of International, Carly Cheeseman, covers the key points in our short video below:
There have been a number of changes to the buy to let mortgage market that have affected the way lenders consider mortgage applications.
If you are a foreign national looking for a buy to let mortgage, you may find it difficult to secure a mortgage with a high street lender.
The European Commission introduced the Mortgage Credit Directive, which ensured any foreign currency mortgage lender had to have an arrangement in place to limit the exchange rate risk to which the consumer is exposed.
As a result, the majority of lenders withdrew their foreign currency mortgage services; lenders argued that foreign currency mortgages are no longer cost effective.
If you are a foreign national paid in foreign currency and you need a mortgage, call us to explore your mortgage options.
There are lenders that are prepared to provide mortgages to foreign nationals. However, recent regulation changes introduced by the Prudential Regulation Authority have altered the way lenders consider buy to let mortgage applications.
Lenders will implement an in-depth income stress test to ensure that applicants can afford mortgage repayments in the event that the interest rate increases to 5.5%.
For applicants with multiple properties, lenders will review the applicant’s entire property portfolio to ensure all of the applicant’s properties are profitable. Lenders will not provide a buy to let mortgage to foreign nationals with buy to let properties that are not profitable.
Lenders will require applicants to have a rental coverage ratio of up to 145% for standard buy to lets and 170% for houses in multiple occupation.
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
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Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
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My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.