22-06-2015

UK High Value Loans.

Understanding the UK High Value Loans Mortgage Market. Loans of £1 million pounds plus.

Fox Davidson secure UK high value loans or large mortgage loans on UK property and have access to high street banks, private finance banks and specialist large loan lenders. For clients across the globe that are looking to secure private finance of £1million to £40 Million pounds plus on residential and commercial property we look at the high value UK mortgage market in more detail.

Income.

From a lenders point of view the core most reliable form of income is an employed client’s basic income. But with many clients earning cash and stock bonuses that are often needed to achieve the required finance a true understanding of a banks lending criteria is key.

Recent changes to the way banks treat bonuses such as those earned by city bankers are a welcome change to lending criteria. Barclays and NatWest recently announced changes to the way they treat bonuses with both now accepting 50% of a client’s annual bonus.

Investment portfolios can also be utilised to secure a large mortgage loan particularly of £5m upwards. The private banks will typically require assets under management and they will offer very competitive terms both for the loan and the portfolio management.

Fox Davidson work with Private banks to bring clients large mortgage loan facilities that both require assets under management and also those that are prepared to leave the stock vested elsewhere but work on the fact they will give the bank comfort to lend more  as part of the clients high net worth.

For the Ltd Company director requiring a large mortgage, lenders will typically lend using salary and dividends. The large mortgage loan lenders Fox Davidson work with on a daily basis will look into a Ltd company in more depth and we are able to have a mortgage lender utilise retained profits that have not been drawn as dividends for obvious tax reasons.

Foreign Nationals, Expatriates & Multi-Currency.

Not all mortgage lenders in the large loan market will recognise income in a currency other than pound sterling and so it is important to approach the right bank offering large loan facilities for clients paid in dollars, Euros and other world leading currencies.

Foreign National high value mortgages – For clients that are non-domiciled but UK resident working for large International banks and are paid in major currencies such as Dollars or Euros we can place lending with high street and private banks that give you access to the very best low interest rates. Foreign Nationals that have no connection to the UK are also able to secure finance on UK property and are able to invest in the excellent property market particularly in London. Bank accounts can be set up outside of UK Jurisdiction too which will suit certain clients. We have secured finance for Foreign Nationals that require a residential property in London for their children whilst at University or for clients that will spend only some of their time in the UK and use the property as a base whilst they are visiting the UK.

Fox Davidson also specialise in high value finance packages for British expatriates requiring loans of £1million plus in fact we have secured finance on London prime real estate of up to  £70 million pounds. British expats wishing to invest in UK property, usually in London are well catered for. The lenders that will lend large sums of money to expatriates include some familiar high street banks as well as offshore lenders closer to home including lenders in Jersey and Guernsey. These banks understand the tax treatment of clients for example living and working in the UAE including Dubai and in Hong Kong and the Far East. Working with these banks Fox Davidson can offer bespoke terms for these clients and best of all these banks do not require assets under management.

Documentation

Proving Income, bonuses, investments and trust income can be tricky if you don’t know which lenders to approach and knowing what you need to declare and what you don’t and how best to supply the required documentation is essential to ensuring a lender stays on side and will lend the required funds.

For UK clients it is quite clear cut, Payslips and P60’s will demonstrate income and for the self-employed company accounts or special forms of proof of income called SA302’s will be required by most large mortgage loan lenders in the UK.

One of the biggest challenges facing non-domiciled, non UK resident clients can be the language barrier and also providing satisfactory proof of identification, bank statements and proof of income. Depending on a client’s country of residence we can place the lending with a Bank that specialises in lending to that country and that has staff that speak the language of that country and will therefore be able to read the documentation and understand the workings of the Countries tax and payroll systems. Examples of recently placed high value loans include Japanese speaking staff at an offshore bank and a commercial mortgage on a large London office block that was placed with a bank that had a branch in their home country. This particular client was a resident of Singapore and using our connection with the right bank we were able to verify the documents using the Singapore branch of the bank  and have the bank in the UK accept the documents without issue.

The Importance of a UK high value loan Mortgage Broker.

Given the often complex requirements of banks for lending over £1m including the sanction by several underwriters or the restrictive criteria give the size of such loans it is wise to use a broker. The Mortgage broker comes into their own in the UK large loan market and at Fox Davidson we will ensure that we place the lending with the right lender, first time. It is essential to approach the right bank as they all treat income in different ways, some will lend on an interest only basis whereas others insist on assets under management so whatever our clients large mortgage requirements are we will ensure the banks’ lending profile will meet our clients lending requirements.

For clients requiring finance from £1 million pounds to £40 million pounds on UK Residential and Commercial finance contact Fox Davidson Directors Wesley Davidson or Sarah Fox-Clinch. Tel: +44 (0)203 287 8806. wesley@foxdavidson.co.uk sarah@foxdavidson.co.uk

Read more about large mortgage loans here.