Although rents are high in areas such as London, property prices mean these areas offer low rental yield. This makes it very likely that your rental income may not cover the costs of your buy to let mortgage payments. However, cities such as London offer high potential for capital appreciation, so can still be considered very worthwhile investments—especially for foreign investors with strong personal income wishing to take advantage of the weak pound.
This creates a problem when trying to secure a mortgage, as most buy to let lenders will require your rental income to cover the mortgage by up to 145%. This is even more complicated if you are an expat or foreign national with foreign income, as this narrows the field of lenders who will work with you.
Fortunately, there is a solution. If you own a buy to let property, but your rental income falls short of covering the mortgage, this lender will allow you to ‘top slice’—that is, you can ‘top up’ using your other income. Furthermore, this lender will allow you to do so by using international/foreign income—making this the ideal product for expat and foreign national landlords who own UK properties.
This product can be used for both purchases and remortgaging, so whether you’re looking to invest or already have a buy to let property, this could benefit you. Offered at 5-year fixed rate of 3.99%, this represents an excellent opportunity for international borrowers. This product can be used for loans up to a maximum of 75% loan to value (LTV) and is available for mortgages up to £1million.
- 5-year fixed rate
- Up to 75% LTV
- Foreign currency
This lender is Sharia-compliant, making it a suitable option for many of Enness’ global customers. However, Islamic finance is increasingly being used by non-Muslin borrowers; in 2015, the Islamic Bank of Britain reported a 55% increase in applications for its savings accounts by non-Muslims.
If you own a buy to let property in which the rental falls short, this product could be ideal for you; get in touch if you would like to know more.