Trying to arrange UK property finance as a foreign national is always difficult. However, securing a UK mortgage as a US citizen is invariably even more complicated than it might be for a European buyer, and this is even more challenging if the applicant has no history of borrowing in the UK.
Whether you’re ready to secure a UK mortgage as a US citizen, or simply want to learn more about UK property for foreign nationals, our guide can help. Download Maximising your borrowing as an expat or foreign national.
The client:
Our client was a US citizen without a history of borrowing in the UK – or even a UK bank account. Having been involved in US real estate for over a decade, all of his income came from US rental properties.
He was drawn to invest in the UK market due to its strong reputation for stability. He soon found an ideal asset in South London. However, as a long-term property investor, his priority was for capital growth rather than high rental yield. Accordingly, the asset our client was attempting to buy – and the high loan to value mortgage he required to complete – did not pass the majority of lenders’ rental stress tests. Added to his nationality and lack of lending history, this made it almost impossible to find a mortgage without expert support.
Our solution:
Due to the variety of issues at play, we knew this would be a difficult case to solve. Despite our applicant’s extensive experience as a landlord, none of this was in the UK – which is ultimately what lenders will look to see. However, our team is well versed in resolving such challenges, so we were confident we would succeed.
We helped the client open a UK bank account as the first step on the journey to securing a UK mortgage for a US citizen. After highlighting that this is likely to be the first of many UK investments, we placed this client with a UK building society which has an excellent record of working with foreign nationals without a history of borrowing in the UK. This ultimately meant we were able to secure preferable terms for the client at 75% loan to value.
This was an excellent resolution, who is now able to begin his investment portfolio in the UK. If you are looking for a UK mortgage as a US citizen, contact an Articus Finance broker today.
The case in brief:
- UK buy to let mortgage for US citizen
- No lending footprint in the UK
- Variety of complex issues
- Building society with experience arranging mortgages for foreign nationals