UK mortgage for foreign national buying rental property in England
Foreign buyers can be caught in a trap when buying property in the UK: you need to have an established financial history here (a bank account, credit card, and utility bills in your name) to get finance from a UK lender. But how can you build up that history before you live here?
Many UK lenders require larger deposits from borrowers who are not UK citizens and charge higher rates and fees. But there are alternatives.
The Scenario
Our client rang from Vietnam: she’s a Malaysian national working there, going to be moving to the UK with her fiancé. She planned to buy a property in Leicestershire and rent it out for a year or so before either remortgaging as their own home or selling it.
The issues: UK lenders are reluctant to offer finance to foreign nationals who don’t have a solid financial footprint in the UK. Our client had a bank account and credit card, but no utility bills establishing her residential ties.
Plus we needed to make the affordability work. For a foreign national applying for a buy to let mortgage, most UK lenders would be looking at a 60-65% LTV. Our client had 25% of the purchase price to put down. And the rental returns on properties in the area weren’t very generous.
In addition, her intention to switch the property from a foreign national BTL mortgage once she was financially established here put her in the frame for punitive early cancellation charges. As well as another valuation and more solicitors’ fees.
The Solution
A shariah-compliant ijara mortgage from a well-established UK shariah bank offered a way around all the problems. Our client wasn’t necessarily looking for shariah finance, but this product suited her needs.
The lenders were happy to consider foreign nationals and would accept a 75% LTV. In addition, they would top-slice the affordability, and allow her to make up a small projected shortfall in rental earnings from her income.
And as a shariah lender, they would not charge an early exit penalty. Their 1.5% up-front product fee is substantial, but in line with most expat lenders, and their valuation fees often seem cheaper. There’s no option for overpayments, but that wasn’t something our client was looking for – but she could exit early without punitive charges.
In a similar situation? Please call our mortgage finance team on 0117 959 5094 or book a callback into our diary at a time that suits you.
Simon Mullins
Finance Broker CeMAP
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Paige Dumpleton
Finance Broker CeMAP
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Jonathan Moffatt
Head of Business Finance
Cardiff
0203 880 8890
Do you need help sourcing your own business finance?
I have extensive experience securing finance for a wide range of businesses. Book a free telephone consultation with me at a time to suit you.
Alex Morris
Private Client Adviser
Bristol
0117 332 5061
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Scott Dutfield
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Carly Cheeseman
Head of International
Bristol
0117 457 9922
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Nick Kerley
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Specialist Car Finance
Broker Finance Team
Bristol
0203 900 4322
Do you need help sourcing car finance?
Speak to our finance team or book a team to speak that suits you.
Book ConsultationBusiness Finance
Business Finance Broker Team
Bristol
0203 880 8890
Do you need help sourcing business finance?
We have extensive experience sourcing unsecured and secured finance for businesses. Book a free telephone consultation with our business loans broker team at a time to suit you.
Mortgages & Short Term Finance
Mortgage Broker Team
Bristol
0117 959 5094
Do you need help sourcing a UK mortgage?
We have extensive experience securing 1st and 2nd charge mortgages. Book a free telephone consultation with our mortgage broker team at a time to suit you.
7 Reasons why you should use a specialist mortgage broker »
Book ConsultationDevelopment Finance
Broker Team
Cardiff
0117 959 5094
Do you need help sourcing UK property finance?
We have extensive experience securing UK development finance. Book a free telephone consultation with our team at a time to suit you.
Expat and Foreign National Mortgages
Broker Team
Bristol
+44 203 900 4322
Do you need help sourcing UK property finance?
We have extensive experience securing UK mortgages for clients based outside the UK. Book a free telephone consultation with our team at a time to suit you.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
Are you looking for a similar type of property finance?
Get in touch today and find out how I can help.
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Book ConsultationSam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Fergus Allen
Senior Finance Broker
Cardiff
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you.
Book ConsultationJacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
Are you looking for a similar type of property finance?
I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.
Book ConsultationJack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you.
Book ConsultationAlex Chambers
Senior Private Client Adviser
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Book a telephone consultation at a time that suits you.
Book ConsultationLuther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance?
I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.
Book Consultation
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you.
Book Consultation