The UK attracts talent from around the globe, and there are many foreign nationals living, working and settling here who wish to buy property. We saw an example of this recently, when we assisted a Canadian national living in the UK on a long-term visa who wanted to purchase a property to live in. His unusual circumstances meant he required a private bank guarantor mortgage, along with some expert advice as Private Bank Mortgages are particularly bespoke.
For expats and foreign nationals, financing UK property is invariably more complicated – especially if you’re seeking a high-value mortgage. To learn more about the options available to you, download our free guide, Maximising your borrowing as an expat or foreign national
The client:
Our client was looking to purchase a property valued at £2.3 million with a 30% deposit, but there were multiple difficulties at play. For a start, as a Canadian passport holder, many lenders would not be willing to offer finance to him – despite his clear intention to remain in the UK.
Even more pressingly, he did not have the required level of income to support such a large loan, and required assistance from his family in Canada. His father was happy to act as a guarantor for the mortgage – but doing this often gets quite complicated, let alone when the guarantor lives in another country, and the sum in question is so large.
Fortunately, we knew that the UK’s evolving private banking landscape has new options, where once such a client would have struggled immensely to find the right solution.
The solution:
As we have seen time and time again over the last decade, private banks are becoming ever more flexible, creative and innovative in how they support clients through their UK property purchases. Increasingly, they are also able to serve a more varied profile of client – such as this individual, who did not have the income or the assets typically associated with a private banking client.
We were therefore able to arrange a guarantor mortgage with a very flexible private bank. The client’s father in Canada acted as the guarantor, but was not required to place any of his own extensive assets under the control of the bank – dispelling the misconception that private bank mortgages are only accessible to those who place assets under management (AUM).
Ultimately, this private bank guarantor mortgage meant that our client was able to proceed with the purchase of his dream property. As this shows, private bank mortgages have come a long way in recent years. For those with unconventional circumstances, this may be the best route forward when seeking finance for a UK property.
The case in brief:
- £2.3 million property purchase
- Private bank guarantor mortgage
- Canadian foreign national buying in the UK
- Guarantor based abroad with no AUM required
