The Intermediary – April 2025 - Flipbook - Page 69
B RO K E R B U S I N E S S
Case clinic
However, in these circumstances, where the
report clearly states a potential structural risk, we
would usually decline, and the purchaser should
be advised as to whether to proceed with their
purchase.
Their deposit should be safe as their solicitor
should not have allowed them to exchange
contracts without a mortgage offer or relevant
searches and reports being received.
The vendor of the property can seek advice
and compensation from the Mining Remediation
Authority, which manages the UK’s long-term
legacy of mining activity.
The client’s income is paid in a foreign currency,
and they lack any UK-based financial history
or assets.
Many lenders have been hesitant due to
concerns about currency fluctuations, as well as
the complexity of verifying overseas tax returns
and payslips.
Further complicating the situation, the client
requires a mortgage with minimal upfront costs, as
they are only able to put down a 20% deposit.
Despite providing detailed documentation, the
client has struggled to find a lender willing to
approve the mortgage.
BUCKINGHAMSHIRE BS
BUCKINGHAMSHIRE BS
The society would need to engage with our
surveyors that we use to help to understand if the
property would be suitable security.
It could be that further surveys could be
obtained to see if it would be possible however
the society is guided by the valuers and their
experience.
The property would need to be assessed as
suitable security for the society to consider to be
able to lend.
The society can consider expat lending for buyto-let. The applicant has to be a British citizen
residing in an acceptable county for the society.
As this would be a buy-to-let, no income would
be used as it would be based on interest coverage
ratio (ICR) so the foreign income would not be
considered or required.
The society does not require a footprint of credit
in the UK; however, they would need to be able to
provide their National Insurance (NI) number, last
UK address and the mortgage payment, and the
rent received must be paid from and in to an UK
bank account.
The maximum LTV would be 75%, and the
society would need further information to consider
as it is not clear what country they are expat to.
SUFFOLK BS
We would be unlikely to lend on this case due
to the severely limited mortgageability of the
property. That said, we would rely on our valuer’s
opinion of the property and may advise that the
couple obtain an interpretive mine shaft report.
This would give a risk assessment and advice
on whether the mine is capped – and if so, when
this occurred – which may help the buyers judge
whether to proceed with the purchase and what
potential options they have.
C AS E T WO
Expat mortgage for UK
investment property
n expat client living in the Middle East with
an annual salary equivalent to £150,000
seeks to purchase a £400,000 buy-to-let
(BTL) property in Manchester.
They plan to use the rental income to
supplement their long-term savings, but
have encountered obstacles due to their
non-resident status.
A
TOGETHER
Together can lend to expats and foreign nationals
on our buy-to-let range, subject to the usual
applicant checks, and it would be subject to the
normal affordability and valuations criteria.
While Together’s max lend on standard property
is 75% LTV, just below what the customer requires,
we could look to utilise additional UK property to
cross-charge to make up the shortfall if needed.
The applicant could save costs using our
automated valuation model (AVM) online
valuation criteria to possibly save further funds to
put towards the purchase.
If the income to credit ratio was met against the
rental income of the loan, Together could proceed
as normal.
QUANTUM MORTGAGES
We’re happy to accept the client’s salary in
a foreign currency, if it equates to at least
the equivalent of £35,000 on the date of
the application.
Most countries of residence are acceptable, as
long as the BASEL AML risk score is 6.0 or below
April 2025 | The Intermediary
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