Bespoke Mortgage Advice
What is a mortgage?
A mortgage is a loan secured against a property, land or other type of real estate. The borrower agrees to pay the lender back over an agreed period of time in a series of regular installments comprising of both interest and principal.
What is an international mortgage?
An international mortgage is just like a regular mortgage, only the borrower is not based in the same country as the property being financed. For example, a person who is a Dubai resident purchasing a property in the UK and seeking a mortgage to finance that property.
Some common questions related to purchasing a property in the UK can be found below:
Can a non British citizen/person get a UK mortgage?
Most UK lenders do not lend to non UK residents so you will have fewer mortgage options. Specialist lenders and international banks may be able to help you get a mortgage on a UK property. Lenders will consider your age, income, job security and credit score.
Can I buy a house in the UK while living abroad or as an expat?
In short, yes, you can buy property in the UK, even if you do not live in the UK. However, the vast majority of lenders will not lend to those overseas. As a result it can be very difficult for an individual to try and find the right lender and at the same time make sure that all other requirements are met too.
Why finance your property with a mortgage?
Investing in real estate enables you to grow your potential return with minimal amount of funds. Some benefits of purchasing with a mortgage include:
Affordable purchase: your repayments are split over an agreed period of time (e.g. 25 years) and as a result your outgoings are far lower than if you were to purchase the property outright or borrow less.
Cost effective borrowing: Mortgage loans normally offer lower interest rates than other forms of borrowing and some banks also offer incentives such as cash backs or discounts.
Liquidity: By borrowing to purchase a property or releasing equity from an existing asset, there is less equity tied into that one asset thus enabling you to grow your property portfolio, diversify your investments or just have the extra money should you need it. It is usually much easier and cheaper to leverage against a property to maximise borrowing potential when initially purchasing instead of instead of releasing equity later down the line which may have its limitations.
Increased financial leverage: By purchasing a property with a mortgage the potential return on your investment will be higher than if you were to purchase in cash. For example, if you put down a 20% deposit (£20,000) on a property valued at £100,000 and the property value then increases to £130,000, you will have gained £30,000 on your £20,000 deposit. This means your return will be 150% which is 120% more than if you had paid for the property in cash.
What is Loan to Value (LTV)?
Loan to value (LTV) is the loan amount measured as a percentage of the value of the property. For example, if a property is valued at £100,000 and you have a deposit of £25,000, then you would need to borrow £75,000. The amount borrowed is then divided by the property value, this gives you the LTV, in this case £75,000 / £100,000 is an LTV of 75%.
Can I get a high Loan to Value mortgage?
Yes, there are lenders who are offering 100% Loan-to-Value mortgages. Each case is unique and different and our team of experienced brokers will be able to source the most competitive solution for you.
Can I remortage my existing properties?
Yes, with the property market and lender criteria ever changing it is important to review your existing mortgages to find out whether you are getting the best deal or if there is a better solution for you.
What if my case is complicated?
Whether you are self-employed, an Expat, Foreign National or do not have a regular income, our team of brokers have a wealth of experience dealing with complicated clients and are able to work closely with the bank’s underwriters to ensure a smooth and stress-free process for you.