Self-employed ex-pat purchases second BTL in London

We were approached by an ex-pat who has been living in Europe for three years, who was looking for finance to purchase his second buy to let.

The property is a two-bed flat in a newly built four-storey building which the landlord wished to let the flat to professionals.

The number of lenders we could approach was restricted for two main reasons:

  • The client does not live in the UK - many lenders see this as a high risk because it can be difficult to establish a complete credit profile.

  • Client is self-employed - most lenders that accept ex-pats prefer borrowers to be employed by an international organisation because they are perceived to be less of a risk.

Thankfully the client still has a reasonable credit profile within the UK and was able to provide accountant certificates proving his income.

This proved invaluable to the intermediary-only lender we approached. The fact that the client had experience as a landlord also helped.

After discussing the most suitable option for his circumstances, the client decided to purchase the property personally rather than via a corporate structure.  

Here are the details of the deal:

Property value: £499,000

Loan amount: £374,250

LTV: 75%

Rate: 4.99% 2 year fixed

Term: 25 years interest only

Lender arrangement fee: 2.5% (£9,356)

Mortgage payment: £1,556 pcm

Rental income: £2,200 pcm

Gross yield: 5.3% pa

 

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