We recently helped a non-UK resident who was struggling to secure a mortgage from overseas. This client had already paid a deposit on a UK buy to let property in central London, but until he changed his salary from US dollars he would be unable to secure the mortgage. To make sure he did not lose the property as a result, he was looking to secure a bridging loan – so he could still purchase the property yet allow enough time for him to change his income and complete on the mortgage.
However, there were a few challenges that came with this case. The client had no existing footprint in the UK, not even a bank account, which makes it incredibly hard to secure finance in the UK as it’s deemed too greater risk in the eyes of many lenders. The fact that he was a non-UK resident dealing with foreign income also created further complications.
Despite this, we were able to use our excellent access to a vast array of lenders to still obtain a bridging loan for eleven months, while using his European bank account for the funds and deposit so he could complete the London property.
Not only this, we also managed to successfully assist the client with the foreign exchange side of the deal to complete on the mortgage, so he could then exit the bridging loan and reduce the cost of his overall lending.
We secured all of this with a rate of 0.8% per calendar month at 67% loan to value.
In this instance, the bridging loan enabled the client to not lose the property or the deposit as he had initially feared and still complete on the purchase.
This is an excellent example of the many short-term solutions available to clients securing finance in the UK and beyond.