Well that is the end of another week…. Things genuinely seem very positive and trying to focus outside COVID is important for a healthy mind. This week has been a good one for decisive clients going ahead, which seems a long away from where we were a few months ago.
With the impact of 2020 so far, the overseas market has seen it’s options closed down for a while… and that’s not just flights! but products are starting to come back and they are competitively priced.
So what does a Foreign National actually mean?
This means a citizen and resident of another country, without any residential ties to the UK. The rate will vary depending on whether the client has any UK credit or properties. The type of lender we go to will also vary; for brand new clients we are more likely to have a medium term product, whereas if you have property in the UK already we can go to a more ‘standard’ lender with a term of up to 30 years.
We can also accommodate some top slicing (using outside income) for some products. This can be useful where the rental yield isn’t sufficient, which is usually for higher value properties in the south.
The UK is still a magnet for property investment, although due to travel restrictions it may seem trickier. SDLT has been loaded now for foreign nationals, but with a low underlying rate it does make the package attractive overall. We are able to get to 75% loan to value where there is already a UK property and 70% without. And rates are more competitive than you might think.
What about ex-pats?
Where clients are ex-pats rather than foreign nationals, things can be easier. There is generally a credit footprint in the UK and often a property too. There are more lenders available in this scenario, but we do need to be careful about the lender’s appetite for the deposit source of funds, or the onward use for a refinance.
We have always had a good reputation for keeping these type of cases as straightforward as possible. In our experience it’s about finding the right lender for the case, which is not necessarily the cheapest but as always you need to consider the end purpose. so have a think and give us a call.