UK Property Mortgage Options for Non-Residents
The UK remains an attractive destination for property investment, and many non-residents are interested in taking advantage of opportunities to invest in the London property market. However, accessing finance as a non-resident can be more difficult than for UK-based borrowers. Since the majority of our clients are investors and homeowners from overseas, we felt it was essential for us to furnish them with a comprehensive update on the UK mortgage market tailored to their perspective.
On this occasion, we have decided to feature and share with you the expertise of Enness Global, a leading mortgage broker that specialises in high-value mortgages and helps individuals and companies looking to purchase UK property by providing competitive rates and terms for their mortgages.
To put it simply, as long as your financial background supports a mortgage and the borrowing is affordable, it is possible to arrange a UK mortgage regardless of factors such as nationality, tax residence, domicile, place of birth, income currency, or type of employment.
Lenders
The UK has a large and competitive mortgage market, offering a wide range of financing options. Enness has access to all lenders that offer non-resident UK mortgages as an independent broker. You don't need an existing credit footprint in the UK or Europe for us to arrange a mortgage for you, and we can secure a mortgage regardless of where your credit history lies.
Private banks headquartered or with branches in the UK are often flexible and offer competitive financing for non-resident investors. Unlike their European counterparts, some UK private banks offer non-resident investors dry mortgages, even for purchases around £1 million. Mainstream lenders and smaller niche lenders are also options, with the latter often being more flexible and able to provide tailored mortgage solutions for individuals with complex backgrounds.
Costs
The costs associated with non-resident mortgages in the UK are generally similar to those offered to residents. While some factors may result in slightly higher rates, each application is considered on a case-by-case basis, and the difference in rates is not always significant.
Products
Various mortgage products are available to non-resident buyers in the UK, including high loan-to-value mortgages. These mortgages used to be more readily available but have become less common due to increased risk. Some lenders still offer high LTV mortgages of 85% or more for non-residents, with options tailored to specific purposes like buy-to-let investments or holiday homes. These loans often have strict eligibility criteria based on income, financial stability, and the ability to minimize default risk.
Interest-only Mortgages
Interest-only mortgages are also accessible to non-resident investors, particularly those with high net worth. Private banks generally offer these mortgages more readily. They allow borrowers to pay only the interest on the loan, resulting in lower monthly repayments. However, lenders may limit the LTV ratio for interest-only mortgages compared to other types of mortgages.
Non-resident Occasional Use Mortgages
Non-resident occasional-use mortgages are available for investors purchasing UK properties for occasional use, such as buy-to-let investments or holiday homes. These mortgages are typically unregulated, allowing borrowers to opt out of regular income and expenditure assessments. As a result, borrowers may qualify for larger mortgages, higher LTV ratios, and more competitive terms and rates.
If you need assistance in UK mortgages, Pippa and Benoit are happy to help – get in touch by emailing us on hello@pippabenoit.com or arrange a call. We will happily put you in touch with a specialist advisor.
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