BTL With Top Slicing For Overseas Client

The Situation

Our client was an Italian national who owned a residential property in London. He wanted to refinance his existing property, rent it out, and use the raised capital for a future property purchase.

However, due to market conditions, he wished to draw down on the capital without providing proof of an immediate onward purchase.

 

The Solution

We secured a discounted mortgage facility at 0.76% below the lender’s variable rate, along with a £1,350 product fee.

This deal raised £130k in capital for the client, who was free to use the funds at his discretion. Despite high stress tests that limited buy-to-let (BTL) borrowing across the market, we were able to secure a 3-year deal.

 

The Process

Several challenges needed to be addressed before finalising this deal. Firstly, most lenders typically require proof of an immediate purchase before considering a “Let to Buy” remortgage. Since the client wanted the flexibility to draw down on the funds as needed, this fell outside the credit appetite of most high street banks.

Additionally, the client’s income was in Euros, which posed two issues. Firstly, most lenders require personal income to be paid in GBP, and secondly, due to stricter stress tests, any rental shortfall had to be ‘top sliced’ using the client’s personal income to secure the desired loan.

Given these circumstances, we approached a specialist building society that offered tailored lending solutions in this sector. We obtained pre-approval from an underwriter before submitting the application, ensuring the best possible chance of success.

The lender agreed to ‘top slice’ using the client’s income paid in Euros, taking into account the strong UK credit history and a certificate from the client’s accountant. This enabled us to present a robust business case, resulting in the approval of the application and issuance of a mortgage offer to the client.

 

The Outcome

Our client was delighted to secure the deal despite challenging market conditions. With the funds available, he can now carefully consider and select the most suitable investment. We look forward to conducting further business together in the future.

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