Client requirements

Australian nationals currently based in Australia looking to remortgage their UK buy-to-let property in order to release funds for business purposes.

Challenges

This case was full of challenges – being Australian nationals presented the first challenge due to the majority of lenders requiring UK citizenship or clients deemed with Expat status. A foreign national is viewed as a higher risk due to the difficulties should recourse be required. The fact that the property was let on a corporate let basis also added a level of complication, as some lenders are unable to lend on this type of tenancy. Funds were also raised for business purposes. In addition, the clients had adverse credit in the form of missed mortgage payments.

Solution

Hawke FS sourced a lender that would consider all the challenges on a two-year product at a rate of 6.99% interest only, which allowed clients to raise the funds needed, clear their debts and establish a UK credit footprint. The rate does sound high initially but when the above challenges were taken into consideration the solution is great value for money. This is important as it would enable the clients to remortgage in two years’ time on to a more standard product. Cashflow was not affected as half of the loan was rolled up interest, which meant small monthly payments.