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
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
Consultant: Chris Longhurst, 01732 471607