The case in brief
- Client: British national / Hong Kong resident
- Property type: Residential purchase
- Property value: £3.5 million
- Loan Amount: £2 million
- LTV: 57%
The UK has recently seen an extensive period of historically low-interest rates. Unfortunately, this period of low-cost borrowing is coming to an end. Of course, accessing the best UK mortgage deals can be complicated if the applicant is living abroad, and has no intention of permanent residency in the UK. This was the case for our British National client, who was currently living and working abroad.
Our client
Our client was a British national who had lived and worked in Hong Kong for a decade. The client owned a property in the UK, which was predominantly used as accommodation for when they return to their native land. We advised the client of the potential that interest rates were due to rise soon and how best to act on this. We were tasked to take advantage of the current favourable interest rate levels in order to achieve a competitive remortgage rate on the property.
To add a little complexity to the remortgage application, the client had no intention of repatriating to the UK. The client also had a relatively low basic salary which was supplemented by a significant but varied annual bonus.
Our solution
The initial hurdle to negotiate was the fact that although our client was a high net worth, he did not have a stable income stream. We approached a private lender who was comfortable with this and was also satisfied that the applicant would not be residing in the UK.
Our next target was to secure a highly competitive fixed-rate mortgage. We were able to negotiate an interest-only mortgage on a 5 year term at a fixed interest rate of sub 2%. This was a satisfying outcome for the client as it meant that their rate remained secure, even if interest rates were to rise during the term.
Ultimately, we secured a competitive remortgage deal, consisting of a £2 million mortgage against a property value of £3.5 million.
Taking advantage of low-interest rates is a worthwhile exercise. This enables stability in the mortgage payments for a fixed period of time, irrespective of what is happening with interest rates in general.
As experts in securing highly competitive fixed-rate mortgage deals, we advise a number of clients who are looking to mortgage or remortgage their property before any rise in interest rates. You can learn more about our services or speak to a broker today.