This case study explores the issues and solutions to purchasing a property when you have only lived in the UK for a short period of time – it also looks at how to acquire an interest only mortgage.
Our client arrived in the UK 10 months ago after being transferred from the Brazilian arm of an international finance company. He had been employed as the head of the company’s European division in London and had been given a tier 2 visa for 5 years.
He sold his family home in Brazil and was now looking to purchase a home in London for his family to live in; an offer was accepted on a modern 4 bed detached home at an agreed price of £1,500,000. The client was looking for £1,125,000 with as much as possible secured on an interest only basis.
At first, it appeared that the client did not have many mortgage options let alone mortgage options for an interest only mortgage. The main issues he had were; not having indefinite leave to remain, not living in the UK for a full year, having little credit history and looking to purchase a large property with a mortgage that has an element of interest only.
Using our knowledge, we approached enders with criteria sympathetic to his circumstances. A building society was identified that could lend our client the funds. Due to the length of time remaining on his visa the building society was reassured and were happy to offer 50% of the property’s value on an interest only basis. It was clear that the client could sell the property at the end of the term and downsize, purchasing a smaller property outright.
An offer was produced after just 10 working days thanks to the great relationship between Fox Davidson and the building society. The client was delighted with what we achieved for their interest only mortgage as it was significantly cheaper than what his international bank was willing to offer.
For more information on interest only mortgages or to speak to us about general mortgage advice, please contact a member of the Fox Davidson team today.