ExPat holiday let mortgages
Last month, we received an enquiry form direct from our website, requesting a call back to discuss a mortgage to purchase of a Holiday Let property.
One of our advisers called the enquirer back to discuss the case; his name was Peter and he had found us using a simple search on “Google”.
We went on to qualify the case with Peter, as usual, opening with the property first. It sounded just perfect, 6 beds, traditional construction, pool, currently in owner occupation, and to top it all, 5 miles from Salcombe, in South Devon. Absolutely prime territory for a Holiday Let.
So far so good…..
The discussion then went on to the price, which was 1.5 million, with a 900K deposit, derived from the sale of another property asset a couple of years earlier. Our man, by this time was chomping at the bit, ready to let lose, with a list of ideal product solutions. Questions on personal income, assets and liability, followed next. Income 250K, paid Swiss Franks, expatriate for tax purposes, and no UK property assets for two years; he had sold up lock stock and barrel in the UK and had no intention to return any time soon. These answers gave a moment of pause.
Now, we knew from experience that a holiday let mortgage lending solution to this case, did not lie within the “off the shelf”, standard matrix products offered by the average lender; the ex-pat situation, no other UK property assets, combined with the fact that the employer was not a multi national, put this case beyond a standard package product.
This case needed a product to be created, and tailored to the customer’s situation; an understanding commercial lender, with foresight to lend on a case, at a slightly higher margin in terms of profit, based on the fact that they could not really get as much information, in terms of credit reference, as they could with a UK based customer. Peter was told that this case needed some careful research and discussion, however a solution could be found, assisted by the fact that the security was excellent, deposit substantial, CV and business plan well above average.
We told Peter that in a case like this, the determining factor was the customers CV; particularly, the lender needed to have real confidence in the applicant’s ability to manage the Holiday Let remotely. Peters CV demonstrated this ability, more than adequately. In addition, through careful questioning, we had found out that some five years to six years earlier, Peter had sold on a rather substantial residential property portfolio for cash. We asked Peter to download his credit file, and send us a copy. The great news was, the loan profiles, all forty of them were on file, just hanging on the edge of the six year registration period. All had been serviced in line with contract. This was just perfect for a lenders underwriter, to make a good case better, great CV and demonstrable property management experience.
In addition to a completed generic application, CV, business plan and credit file, Peter was asked to e-mail an, A+L statement, three month’s banks statements, showing a mandated salary, and ID certified at the British Embassy. It took Peter a few days to get the information together, scan it in and send it back; however well worth the effort, as it allowed us to approach a lender correctly, and professionally, creating the right impression for the customer. We knew that with ex-pat cases, lender perception is critical, for a positive outcome.
It took us a couple of days to get to the right person at the lender, present the case, and get a decision in principle. As expected a slight premium was charged for the ex-pat situation. however this was inline with Peters expectations.
The case completes end February
Please call us on 0800 840 3111 to discuss your holiday let mortgage.