Many global businesspeople and high net worth (HNW) individuals are keen to invest in UK property, but when it comes to financing the purchase of an asset, many experience difficulties. This client – who was looking for a UK mortgage as a Singapore resident – is a prime example.
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The client:
Our client was a self-employed Indian national who was planning on buying UK property from Singapore. This individual had multiple income streams, including from his original source of wealth – the garments industry in India. With a global property portfolio to boot, this client’s financial affairs were complex to say the least. So when he set out to purchase a fantastic residential property in the UK valued at £6 million, he already knew the difficulties he would face in finding the appropriate lender.
For clients like this, seeking a UK mortgage as a Singaporean resident, private banks are typically the answer. However, this client already had a private banking relationship in Singapore and didn’t want to place assets under management (AUM) with a new lender.
This limited his options around securing a UK mortgage as a Singaporean resident considerably, since placing AUM is often a condition of beginning a new private banking relationship. His current bank wasn’t able to provide him with a regulated mortgage in the UK – which he required, given this property was being purchased for his personal use. The client also needed to move quickly, as he would lose out on the purchase otherwise.
The solution:
To find an appropriate resolution, we approached a global private bank which specialises in serving clients based in Asia. Unusually for a private bank operating at this level, this lender required no AUM and was happy to simply provide the mortgage on an interest-only basis.
Best of all, we were able to collaborate with this lender to facilitate a smooth process. For example, the lender displayed their exceptional ability to move quickly, despite the complications of the client’s wealth. And although this lender requires a face-to-face account opening process, we organised for one of the bank’s representatives on the ground in Singapore to complete this, as our client wasn’t free to travel to the UK.
Ultimately, we were able to arrange a five-year product at a preferable fixed rate, at an LTV of 65%, and on an interest-only basis.
The case in brief:
- £6 million UK property purchase for Indian national
- UK mortgage for Singaporean resident
- Private bank loan with no AUM
- Five-year fixed interest-only mortgage