Addressing red flags for a foreign national investing in the UK BTL market

Loan Amount:
£620,000

Property Value:
£12,000,000

LTV:
62%

Working with foreign national investors can present unique challenges. With overseas buyers, there may be delays in the background checks. But, often, some of the flagged issues may not even be applicable or correct.

One of our underwriters recently had to deal with such an issue. A foreign national turned to us for funding to cover the costs associated with a BTL purchase.

But, we had to move quickly to overcome issues that emerged during the initial assessment stages.

Addressing a false flag

As a red flag was raised, we had to react quickly to ensure the deal didn’t slow down. Fortunately, our underwriter explored the borrower’s background further, and was able to determine the problem was actually a non-issue.

With confirmation that we could proceed, we were then able to turn our attention to the investment property itself. We saw it was in a prime location, which allowed us to comfortably move to the final stages of the deal.

The exit strategy was dependent on another facility maturing in time to cover our funding. This presented a possible scheduling issue, but our underwriter attained documentation confirming everything would be ready with time to spare.

With the borrowers clearly being very organised, coupled with the strength of the investment, we delivered funding that fitted in with their timeframes.

Welcoming investors turned away from the mainstream market

Foreign nationals, whether they be individual investors or buyers manoeuvring through a business, will likely struggle to gain access to the UK property market. With those based overseas, there may be added due diligence involved.

What’s more, in the current market, lenders may be hesitant to provide funding for domestic buyers, let alone foreign investors who present added complexity.

But, we have foreign national bridging loans created specifically with these complications in mind. We’re able to work with individual foreign nationals, overseas companies, expats, offshore trusts and more. If you have any overseas interests, we may be able to provide you with entry to the English and Welsh markets.