Key Challenges

  1. Irish Passport Holder Treated Differently by Lenders: The client held an Irish passport, which complicates the process as not all lenders treat Irish passport holders with the same rights as UK citizens for mortgage eligibility. The client’s previous broker had actually overlooked this detail and approached the wrong building society, leading to a stalled application (hence the client coming to us).
  2. Earnings and Bonus Structure: The client’s income consisted of a high base salary plus long-term incentive plans (LTIPs), a bonus structure not easily understood or accepted by some lenders. These bonuses were a key factor in achieving the loan amount required.
  3. Loan-to-Value (LTV) and High Loan Requirement: The client needed an 80% LTV mortgage, aiming to borrow £704,000 against an £880,000 purchase price – fairly high LTV for an expat mortgage.
  4. Expat Considerations: Residing in Canada, the client earned exclusively in Canadian dollars, which added complexity to the underwriting process. Additionally, they planned for a future return to the UK and required a mortgage product that aligned with this goal.
  5. Family Dynamics: Childcare costs in Canada reduced their disposable income and was affecting affordability.

Our Solution

  1. Reassessing the Case: Once the client approached us, we conducted a thorough analysis of their situation. Understanding the specific rights of Irish passport holders, we identified the sole building society that treated these applicants with the same rights as UK citizens.
  2. Securing the Right Lender: We initially obtained an AIP from a leading building society for a maximum loan of £550,000. Recognising this was insufficient, we escalated the case by engaging directly with the head of underwriting and our Business Development Manager (BDM).
  3. Negotiating Loan Terms: By presenting a detailed breakdown of the client’s income structure, including LTIPs, we successfully negotiated the higher loan amount of £704,000. This step required clear communication and advocacy to ensure the lender’s confidence in the client’s financial stability.
  4. Tailored Mortgage Product: To align with the client’s planned return to the UK, we secured a two-year fixed-rate product. This provided short-term stability while allowing flexibility for future refinancing upon their return.
  5. Addressing Childcare Costs: We demonstrated that the client’s partner’s ability to become a full-time parent effectively reduced childcare costs, enhancing the client’s affordability profile.
  6. Ensuring UK Credit Presence: The client already had a strong UK credit presence and a UK bank account, both essential factors for the application. We ensured these elements were correctly highlighted in the application to strengthen their case.

Outcome

Within a short turnaround time, we secured a £704,000 mortgage at 80% LTV for the client. This allowed them to purchase their £880,000 property in Southampton and set the stage for a smooth eventual return to the UK.

Key Takeaways

  • Specialist Expertise Matters: Understanding niche requirements, such as the treatment of Irish passport holders, can make or break a case. Specialist brokers like us at UK Expat Mortgage are equipped to navigate these complexities.
  • Tailored Solutions: By addressing unique income structures and family dynamics, we successfully negotiated terms that worked for both the client and the lender.
  • Collaborative Negotiation: Direct engagement with underwriters and leveraging professional networks were critical in achieving a higher loan amount.
  • Expat Considerations: Planning for future needs, such as a return to the UK, ensures that clients’ financial goals are met without compromise.

For bespoke advice on UK expat mortgages, contact UK Expat Mortgage today. We specialise in turning complex cases into success stories.