Trying to find the right lender willing to offer property investment for overseas clients is no mean feat. With only a limited number of lenders offering this proposition, it can be challenging to secure a loan because lenders scrutinise applications to ensure they are lending responsibly.
Case profile
Our clients, who are US nationals were looking to fund a significant self-build project in the Home Counties. Halfway through the design project, the couple faced financial complications due to a job and income structure change. The project could no longer be funded entirely from income cash flow through to completion; therefore, a £2m cash injection was required to finish the build.
There were multiple challenges for raising investment for the project. Not only were the couple US nationals living in the UK, but they were also effectively self-employed in a US business. With no track record of earnings from the current position, many traditional lenders eschew this atypical profile. The client’s income was paid in USD, and they filed taxes in the US. However, they could demonstrate a strong history. As their security was wrapped up in a half-built property, any new lender was unable to verify the quality of the works already completed.
Solution
Fortunately, we have access to more than 300 lenders, including traditional lenders, private banks and niche lenders. We can accommodate all types of profiles working outside of the parameters of other mortgage brokers. Nigel Bedford, Associate Director for largemortgageloans.com, presented a very strong case to a private bank, encouraging them to take on the client’s application. The bank was prepared to go outside all typical parameters and agreed to lend £2m at 50% LTV against the part-built house’s current value. Then the property was down valued, but the bank still decided to honour the £2m even at a higher 56% LTV.
The funds advanced in one tranche. Therefore, there was no need for any costly ongoing monitoring by independent Quantity Surveyor. Our clients are delighted, as are the builders. Our clients could continue to make their payments on time to enable the build to progress on schedule to completion, and our clients could move into their dream home.
If you’re struggling to find a mortgage on the mainstream market, talk to the experts in large and specialist finance. We have access to solutions you just can’t find on the High Street and we take a bespoke and tailored approach to every single client case.
