Ex-pat with little UK credit history purchases rental property

An ex-pat contacted us looking to purchase his second rental property, a three-bed flat within a four-storey block in West London.

The client has been living in Saudi Arabia for the past three years and works as a consultant within the healthcare industry.

Not many lenders offer products to ex-pats and our job was made harder because the client has very little traceable UK credit history - his existing buy to let property has no mortgage.

Fortunately the applicant was able to provide us with:

• Proof of permanent employment in Saudi Arabia

• Proof of UK citizenship

• A UK bank account for rental payments

• Evidence of buy to let experience (SA302s and tax returns)

This allowed us to place the deal with one of the specialist lenders which offered the following terms were offered:

Property value: £250,000

Loan amount: £187,500

LTV: 75%

Rate: 4.79% tracks lenders SVR (6.58%) discounted by 1.79% for 2 years

Term: 25 years interest only

Lender arrangement fee: 2% (£3,750)

Borrower: Personal application

Mortgage payment: £760 pcm

Rental income: £1,150 pcm

Gross yield: 5.5% pa