Client Background
The client was employed in Saudi Arabia and earning income in Saudi Riyals (SAR), while the rest of their family resided in the UK. They had an opportunity to privately purchase a neighbor’s property in the UK, which featured extensive equestrian facilities. The client already owned two mortgage-free properties—one of which was on the market at the time of the purchase consideration. However, the client sought a solution that would allow them to acquire the new property without relying on the sale proceeds from their existing property.
Challenges
- Currency Complication: The client was paid in SAR, requiring a lender who would accept this currency for their mortgage application.
- Avoiding a Bridging Loan: The client was keen on avoiding bridging finance to keep costs as low as possible.
- Overpayment Flexibility: They wanted the ability to make overpayments on the mortgage after the sale of one of their existing properties to reduce the loan amount.
- Large requirement: The client was seeking borrowing in excess of £2.6m
Solution
To address the unique challenges, a tailored approach was undertaken:
- Renting Out One Property: The client decided to rent out their second property to improve affordability and generate steady income, which supported their application.
- Exploring Lending Options: Various options were evaluated, including both high street lenders and private banks. Ultimately, private banks were deemed more suitable as they could better accommodate the client’s complex scenario.
- Custom Loan Agreement: A mortgage was secured with flexibility for overpayment, allowing the client to reduce the loan amount significantly after selling one of their existing properties.
Outcome
We successfully negotiated agreements with multiple lenders, providing the client with a range of financing options and maximum flexibility.
This allowed the client to secure the neighbouring property with equestrian facilities while retaining ownership of their two existing properties. By structuring the finance strategically, they avoided the need for a bridging loan, keeping costs low. Once the sale of one property was completed, they utilised the overpayment flexibility to reduce the mortgage balance efficiently, strengthening their financial position
This case demonstrates how understanding a client’s unique circumstances and leveraging bespoke financial solutions can lead to an optimal outcome. Explore our expat mortgage services to find out more about our mortgage solutions for specialist property types.