Our clients, UK nationals residing permanently in the United Arab Emirates (UAE), were looking to purchase a family home back in the UK. They planned to use the property whenever they returned to the country. However, the transaction carried significant hurdles due to their overseas status.
The clients wanted to borrow £600,000 to secure the purchase while keeping a substantial portion of their cash savings in the bank. Although the borrowers maintained active UK bank accounts and a credit profile here, their daily working lives were based in the Middle East. Buying a home from overseas turned a standard residential purchase into a highly specialised process.
The Challenge
The primary obstacle to getting this deal over the line on the high street was the clients’ income structure. Working as professionals in Dubai, they were paid exclusively in UAE Dirhams (AED) into a local bank account.
For mainstream high street lenders, foreign currency earnings cause immediate complications, meaning many lenders couldn’t assist. Because of strict affordability checks and foreign exchange (FX) fluctuations, a specific set of specialist lenders was required.
Furthermore, the clients needed an 80% LTV facility. In the expat lending market, typical deals come in a little lower at 70% or 75% LTV, making this a high LTV for an overseas buyer and leaving them with very few options among conventional banks.
The Strategy
Recognising that the clients had a strong case, we reviewed the lender options on LTV and affordability to find an alternative route. We proposed the overview directly to specialist lenders who understand expat income and the UAE job market.
We leaned heavily on our lender relationships to ensure a smooth application. Our team worked closely with the funders from day one, providing all necessary information upfront to ensure no mistakes were made with foreign exchange currency conversions.
To ensure the process ran smoothly and to protect the clients’ deadlines, we went above and beyond by introducing our preferred solicitor to act for the client, giving us complete control over the completion timeline.
The Results
Through our strong lender relationships, we successfully negotiated the case and secured a premium £600,000 expat residential mortgage.
- Total Loan Facility: £600,000
- Loan-to-Value (LTV): 80% LTV
- Pricing: 4.42% discounted variable rate
- Loan Term: 27 years
- Repayment Type: Capital and Interest
When comparing the high street approach to our strategy, the differences are clear: high street banks rely on automated credit scoring that struggles with foreign currency earnings like UAE Dirhams, whereas the Diamond Property Finance solution utilises manual international underwriting to review the lender options on LTV and affordability.
Additionally, mainstream institutions enforce strict leverage caps often limited to 70% or 75% LTV for expat clients, while our approach successfully achieved a higher 80% LTV parameter. Finally, traditional applications frequently suffer from administrative delays surrounding international verification, whereas we introduce preferred solicitors to control strict deadlines and ensure day-one accuracy.
Why This Matters
This transaction shows how important it is to have a specialist broker when navigating the international property market. For British expats, earning in a foreign currency should not stop them from buying a home back in the UK.
By working with a specialist funder who could assess the UAE Dirham income, we managed to secure an 80% LTV deal that traditional lenders could not match. Rather than being forced to use up their cash savings to bridge the gap, our clients secured the exact loan they needed. This solution allowed them to go ahead and buy their UK property while keeping their cash savings safely in the bank. The client was absolutely delighted with the outcome.
Speak to a Specialist
If you are a UK expat residing in the UAE or anywhere else globally, earn in a foreign currency and require a high-LTV residential or investment financing solution, our brokers are ready to structure your leverage. Contact Diamond Property Finance today to discuss your requirements.