Two professionals based in Dubai wanted to raise capital for property investment so they could acquire their first UK property, a modern new-build flat in Manchester. Despite having no UK property history or credit footprint, we secured 75% LTV financing through a specialist Middle Eastern lender.
The Challenge
The clients faced several significant hurdles in securing the required borrowing:
- Non-Resident Status: Holding Italian passports and residing in Dubai made the clients “Foreign Nationals,” which excludes them from most high-street lending.
- No UK Credit Footprint: A lack of UK-based financial history or property ownership initially disqualified them from traditional routes.
- Complex Income Mortgage: Their income was earned in a foreign currency (AED), requiring a lender comfortable with international wealth profiles.
- New-Build Development: The property was a unit in a high-rise development, which requires specific lender approval for high-density living.
The Strategy
To structure a deal that met the clients’ needs, we leveraged our deep network of international and specialist lenders:
- Specialist Lender Selection: We identified a Middle Eastern lender with a UK presence that understands the specific financial dynamics of expatriates living in the UAE.
- Holistic Profiling: We conducted a detailed initial consultation to build a robust financial case, presenting the clients’ global stability to offset the lack of UK credit history.
- Interest-Only Facility: We structured the mortgage as an interest-only mortgage in the UK to maximise the rental yield and cash flow of their first investment.
- Negotiation: We secured a competitive rate of just over 5% with a transparent 1% lender fee, ensuring the investment remained viable from day one.
The Results
- Property Value: Circa £350,000
- Loan-to-Value (LTV): 75%
- Mortgage Structure: Interest-only mortgage
- Interest Rate: Just over 5%, accompanied by a 1% lender fee.
- Key Outcome: The clients successfully entered the UK market with their first investment property in Manchester.
Why This Matters
For foreign nationals, the UK property market is highly attractive but often operationally difficult to access. By utilising a specialist broker to raise capital for property investment, international clients can bypass the need for a UK credit score and secure competitive terms that allow them to build a profitable UK-based portfolio from abroad.
Speak to a Specialist
Ready to raise capital for property investment as a foreign national or expat? Book a consultation with our team today.