Client Background: This joint client was looking to raise capital through a buy to let remortgage but had found it extremely difficult to secure lending due to their residency status. The applicants were seeking a joint remortgage, both living as expats in the UAE.
While one client had a UK passport, the other was a Belgian national. They had found that the vast majority of UK BTL lenders would not accept any remortgage application from an expat investor without a British passport or citizenship status.
Property Information: The clients wished to refinance a property in Liverpool used solely as a rental residence and portfolio investment.
Financial Requirements: Initially, the clients sought a remortgage to the value of £60,000 against a property valued at £80,000, constituting a 75% LTV ratio.
During the negotiations and following a new survey, the property had increased in value. The final remortgage secured was £67,125, as 75% of the current valuation.
The Revolution Brokers Solution:
Revolution Brokers discussed the scenario with our clients and took some time to understand their residency and citizenship positions to make a professional recommendation about the most appropriate lender.
We acknowledged the challenge in securing BTL remortgage borrowing from a UK lender, with one of two joint applicants being a non-UK national. The solution was to negotiate a buy to let remortgage with Shawbrook, as one of the lenders we regularly work with. This lender has flexible policies and is open to negotiating terms in non-standard situations.
While the interest rate is relatively high compared to standard market rates, we analysed other opportunities to ensure the deal was the most competitive available. Revolution confirmed this would still represent a positive cash flow output compared to the interest costs and rental income.
Our client was satisfied that this represented value for money and a resolution that would immediately release the capital required for their other plans.
The remortgage is on a five-year fixed rate, as the most advantageous term, and will be open to refinancing after this time.
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Property Valuation:
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£89,500
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Total Mortgage Borrowing:
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£67,125
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Loan to Value Ratio:
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75% BTL remortgage
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Negotiated Interest Rate:
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4.79% Five-year fixed rate
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Mortgage Term:
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25-year standard term
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Monthly Payment Value:
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£271.96 interest-only
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Arrangement Costs:
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£900 fixed cost
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Rental Income Achieved:
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£499 per month
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