The best UK mortgage products for HNW non-residents and foreign nationals

The best UK mortgage products for HNW non-residents and foreign nationals

In 2019, Enness arranged mortgages in the UK for 78 different nationalities, the largest of which was worth £42 million. We are the leading broker for non-resident and foreign national mortgages in the UK. Working with over 300 global lenders in our trusted network, we can arrange mortgages for individuals with any tax residency, place of birth, country of residence or domicile.

In this article, we’ve researched and cherry-picked the best products on the market right now to uncover the top 3 mortgage products for high net worth (HNW) non-residents and foreign nationals looking for property finance in the UK. So what are you waiting for? Take a look at everything you need to know below.

  • 100% Loan to Value (LTV) purchase or refinance 

Many of our HNW clients are keen to secure 100% finance for a residential property regardless of the fact they have the money available to put down a large deposit, to maintain their liquidity. Likewise, many clients with large personal net worth seek 100% finance for a different reason; they are illiquid, as their wealth is invested in stocks, shares and a range of other assets. 

It’s important to understand that securing a 100% loan to value mortgage – that is, a mortgage with no deposit – is a very unusual proposition. Whereas this was relatively easy before the financial crisis, this is now much more difficult to achieve – but by no means impossible as this brilliant product proves.

Product highlights:

  • Maximum mortgage amount: £20,000,000 to 100% LTV 
  • Security: 65% LTV secured against the property; 35% LTV secured against a portfolio (portfolio created from the equity released during the refinancing)
  • Margin: 1.6-1.85% above the cost of funds 
  • Duration: 5-year facility, renewable for another 5 years
  • Lender fee: 0.5% of the loan amount
  • Mortgage type: Unregulated mortgages only, available for purchase or refinance
  • Applicable borrowers: Available to individuals, corporates, and trusts

This is a very rare solution that can be used to maximise leverage against prime UK properties available to UK residents, non-residents and foreign nationals. 

The lender uses an open underwriting approach and can be very flexible. Loans over £20m are available on exception. 

  • High-value UK regulated mortgage with no assets under management

Placing assets under management (AUM) with a lender is not always possible (or desirable!) and it’s a misconception that large mortgages will always need an element of AUM. Historically, yes, private banks have required up to 50% assets under management when offering a large property mortgage to a client. In some circumstances, clients may be happy to do this—but in our experience, many high net worth individuals already confidently manage their own assets and would prefer not to place these with a lender they have never worked with before, especially if they are a non-resident or foreign national.

Fortunately, this attitude has somewhat shifted. Some very reputable names in the banking world have begun to cater to clients seeking a large mortgage without placing any AUM. Known as ‘dry lending’, this facility allows borrowers to take out a large loan without placing financial assets with the lender; this product exemplifies this perfectly.

Product highlights:

  • Mortgage type: HNW regulated residential mortgage
  • Maximum mortgage amount: Mortgages up to £50,000,000
  • LTV option 1: 50% LTV – 1.6% over base
  • LTV option 2: 70% LTV – 1.8% over base
  • Lender fee: 0.5% of the loan amount
  • Mortgage rate: Fixed rates priced to order 
  • Duration: 5 or 10-year interest only 
  • AUM: No AUM required 
  • Applicable borrowers: Available to individuals, corporates, and trusts

This lender uses the HNW exemption to reduce the underwriting burden for income which results in a much simpler process and is a fantastic option for foreign national and/or non-resident individuals who are looking to secure property finance in the UK but are reluctant to put down any AUM.

  • Case by case underwritten high-value UK mortgage

We often see individuals who are ‘asset rich/cash poor’ or who, at the time of needing a mortgage, find that their income is not structured in a way that satisfies the majority of lenders’ requirements.

For example, this could relate to individuals who:

  • Are building businesses and don’t draw significant income;
  • Have recently sold a business; 
  • Have changed employers and are in a transition year for bonus income;
  • Have a large asset base;
  • Have assets or income held in trust; 
  • Are recent divorcees.

For clients who find themselves in a situation such as this, one of our most trusted lenders offers a fantastic facility to help them overcome and navigate their financing barriers. This lender takes a fully holisitic approach to the client’s needs, meets them in person and if the client meets their certain criteria the lender will then work with us to find a solution to the client’s current requirements.

Typical criteria for this lender are: 

  • LTV: Maximum 65%
  • Minimum mortgage amount: £1 million
  • Maximum mortgage amount: £40 million
  • Mortgage rate: Pricing on a case by case basis, variable or fixed 
  • Lender fee: 1% 
  • Mortgage type: Interest-only
  • Duration: 1 to 30-year term
  • Other mortgage types: Offset and overdraft mortgages available 
  • Currency: Can lend in GBP, EUR or USD
  • Requirements: Need to have a UK presence
  • Location: Will lend across the UK and the Channel Islands

This is private banking in its purest form. AUM will not be required by the lender but it may be necessary to use some cash or other assets in order to create the correct solution for the client; for example, the client may need to pre-pay interest to reduce serviceability pressure.

Why Enness?

If you find yourself in a situation that would benefit from any of these fantastic products, we would welcome the opportunity to chat through your case with you. A no-obligation discussion regarding your specific scenario would allow us to offer suggestions, advice, and solutions going forward. As we have access to more than 300 worldwide lenders we are able to secure extremely competitive quotes for our foreign national and non-resident clients who are looking to secure property finance in the UK.

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