At largemortgageloans.com it’s not uncommon for our clients to be UK nationals living abroad. Often, we are approached when these clients are looking to return to the UK. Our Associate Director, Tom Foster, recently helped clients living outside of the UK secure a mortgage for their new family home whilst moving their business back to home turf.
Case profile
Our clients owned a consultancy business that was based in their country of residence. Their end goal was to transition everything from one country to another. In order to do this, Tom needed to find a lender who would consider their circumstance and explore a bespoke mortgage to suit their needs.
As their source of income was from self-employed work, it was imperative that the lender understood the nature of their business model and accept that although repatriating to the UK, they planned to set up and trade from a brand-new UK Ltd company whilst retaining the clients and contracts that had previously been in place.
Solution
The clients required a high LTV and a large loan of over £1million. They were unsure about whether to select a fixed interest rate or borrow on a variable rate so a blended rate was created to offset uncertainty.
Due to our credibility and established relationships with private banks, Tom was able to explain the full dynamics of the client’s business alongside the transition back to the UK. As a result, the lender was happy to take the full income from the overseas company obtaining the full LTV, enabling the clients to fulfil their desired return to the UK.
| Loan amount 1: Loan amount 2: | £660,000 £462,000 |
| Rate 1: Rate 2: | 2.54% 2.29% |
| Loan To Value 1: Loan To Value 2: | 50% fixed rate for 5 years 35% fixed rate for 2 years |
| APRC: | Overall cost for comparison 3.60% APRC representative variable |
| Term 1/2: | 21 Years |
| Type 1: Type 2: | Interest only Repayment |
| Loan purpose: | Purchase |
| Lenders arrangement fee: | 0.50% |
| Early repayment charge 1: Early repayment charge 2: | 5% of outstanding loan if repaid in year 1, reducing by 1% year on year for 5 years 2% of outstanding loan amount if repaid in year 1 and 1% in year 2 |
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
needed for customers to make a decision and they should seek advice.
Overall cost for comparison 3.60% APRC representative variable based on 60 payments at the lenders fixed rate 2.54% and 24 payments at the lenders fixed rate of 2.29%, followed by 192 and 227 payments at the lenders standard variable rate currently 3.75% for each loan. Because all, or part of, the mortgage is currently, or will revert to, a variable interest rate mortgage, the actual APRC could be different from this APRC and the payments could increase, if the interest rate of the loan changes. For example, if the interest rate rose to 9.00%, the APRC could increase to 7.20%. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
Changes in the exchange rate may increase the sterling equivalent of your debt.
