The case in brief
- Client: Hong Kong national & UK resident
- Property type: Residential purchase
- Property value: £1.4 million
- Loan Amount: £1 million
- LTV: 71%
As a self-employed foreign national, investing in a UK property via a regular high street lender is a non-starter. This is particularly true if the applicant does not have a significant history of UK business accounts to support such an application. This was the case with our Hong Kong national client, who had lived in the UK and created a successful business over 2 years of residency.
Our client
Our client was a Hong Kong national who had lived in the UK for two years, initially on an entrepreneurial visa. During this time, he set up his own business helping Hong Kong nationals to relocate to the UK. As a relatively new business, our client’s company marginally broke even in their first year due to the setup costs involved. Their year 2 accounts, however, were much more profitable and proved that the business was viable in the long term.
In addition to this, our client intended to bring their deposit over from Hong Kong, which adds further complexity to a foreign national mortgage application. The client was also looking to achieve a competitive rate on a significant mortgage value of £1 million.
Our solution
As with any self-employed person, proving that their income is sustainable in the long term is crucial to the success of a mortgage application. This becomes particularly challenging when we could only use his latest years accounts. We sourced a building society that specialises in self-employed mortgages with one year’s accounts. They were happy to accept the client’s situation and were satisfied that the business was viable.
Additionally, we ensured that the lender was comfortable with the fact that our client had only been a resident of the UK for 2 years and was providing their deposit from overseas. Ultimately, we achieved a mortgage of £1 million against a property value of £1.4 million at highly competitive market rates.
Foreign nationals residing in the UK can encounter a number of stumbling blocks when looking to invest in a property. This is particularly true when the person has a limited account history. As experts in foreign national mortgages, we deal with a number of non-UK nationals looking to invest in UK properties, each with their own unique challenges. GET IN TOUCH TODAY.
