Client Background
Our clients, a young couple consisting of a UK citizen and a Canadian citizen, both working as veterinarians in Canada, faced the challenge of remortgaging their former residential property in the UK. Their goal was to switch from a variable rate to a lower fixed rate and convert the mortgage to a buy-to-let arrangement, generating rental income.
Challenges
The fact that one partner was Canadian added complexity, as some lenders were hesitant to accommodate this situation. Additionally, the couple was already on a variable rate mortgage and needed to expedite the process to secure a lower rate. During the preparation for their application, it was discovered that one of the applicants had adverse credit recorded in the UK. This was due to an issue with an account closure when they moved overseas, which is a common problem. Leveraging our strong relationship with the bank, we were able to agree the case as an exception
Solution
Given our extensive experience with clients who are professionals working abroad, we understood the importance of maintaining their UK properties for their eventual return. We advised the couple to opt for an interest-only mortgage, which helped keep their monthly payments to a minimum. This approach allowed them to allocate more of their income towards living costs overseas. Interest-only mortgages are often preferable for rental properties as they allow overpayments to be used to reduce the capital outstanding. Additionally, this approach is beneficial in managing any rental voids or maintenance expenses, which can be more challenging with a repayment loan. By utilising our established relationship with a trusted lender, we were able to expedite the remortgage process. Our strong working relationship with the lender facilitated swift communication and efficient handling of the application, despite the added complexities.
Outcome
We successfully secured a buy-to-let mortgage for the couple at a competitive fixed rate, which aligned with their future plans to relocate. This provided them with financial stability and peace of mind, enabling them to generate rental income from their UK property while continuing their veterinary careers in Canada. Our extensive experience with clients who are professionals working abroad enabled us to understand the nuances of expat mortgages and consider the clients’ living costs overseas. We were able to expedite the remortgage process by utilising our established relationship with a trusted lender. Our strong working relationship with the lender facilitated swift communication and efficient handling of the application, despite the added complexities.
This underscores our commitment to providing tailored solutions that meet the unique needs of our clients, even when they are living and working overseas. If you are a professional working abroad and need assistance with your mortgage, don’t hesitate to reach out to us. We’re here to help you navigate the complexities and find the best solutions for your situation