The Client
Our client was a UK expatriate working in Saudi Arabia, looking to purchase a new property in the UK for their family to live in. We had arranged their previous mortgage, and due to the complexities in their situation, required our services.
How We Helped
The client already had a mortgage on their previous property. They wished to port the existing mortgage to the new property, retaining the same interest rate. Whilst also raising an additional £70,000 to cover a higher deposit, fees and moving costs.
Their salary was paid 90% in US dollars and 10% Saudi Riyal. This can be quite common for clients working overseas, with the local currency used to meet their day to day spending and the USD income is remitted home. The most price-competitive lender is only able to accept USD, which would usually mean that 10% of their income is deducted before a foreign currency haircut is taken. As the underlying client contract was entirely in USD, we were able to use the client’s full income.
By remaining with the current lender the client was able to benefit from high street bank rates, which are the same rates available to a UK-based client. As well as avoiding the potentially higher fees that come with Expat mortgages.
This ensures competitive borrowing costs and affordability of mortgage payments.
If the client was only earning in Saudi Riyal we would still be able to help with their finance requirements, but the mortgage pricing would be more reflective of a client based overseas.
Further considerations
As the client was earning in a currency other than GBP, they still have foreign exchange considerations when determining the cost of their mortgage. We partner with a specialist money broker who is able to secure competitive rates, with no transaction fees. They offer a solution for one-off transfers or regular remittance of funds.
To find out more about Forex services and how you might benefit you can enquire here.
See also: Currency Exchange for Overseas Property Purchase
In conclusion
This strategy allowed the client to access high street rates usually exclusive to UK residents, leading to significant financial advantages.
By porting their existing mortgage with Santander and benefiting from a high LTV and competitive interest rates, the client can effectively manage their international income and secure a suitable residence for their family.