As a non UK resident bridging finance can be a useful solution for purchasing UK property.
Problems with using a standard mortgage as a non UK resident
Income earned outside the UK can sometimes be difficult to evidence and could take time for a lender to assess. Meet UK mortgage lenders’ requirements can require document translation and recognised accountant’s letters to validate as legitimate.
In the present climate, non-UK resident Buy to Let Mortgage rates are relatively high and less attractive than in recent times. As a result, lenders’ stress tests have increased, making it more difficult to obtain desired loan amount. This could be highly damaging to a new build purchase which the buyer may have exchanged on well before applying for the mortgage.
When there is a shortfall, overseas funds take time to transfer. Arranging a mortgage would take too long to fill the gap, but a bridging loan can be arranged in a matter of days. In addition, a typical mortgage’s physical valuation and legal process cause delays. Bridging loans can be arranged without a formal valuation, and specialist solicitors can fast-track a bridging loan completion.
Benefits of using a bridging loan as a non UK resident:
Bridging finance can be efficient and cost-effective with no physical valuation needed. Lending rates are not too dissimilar from a buy-to-let mortgage and so can make finance accessible with less red tape.
Once the property is secured, a bring loan can allow the owner sufficient time to remortgage or transfer funds from overseas to repay the bridging loan.
Many non-UK residents struggle to obtain a mortgage in the UK due to a lack of credit footprint. Using a bridging loan can establish a credit profile in the UK and therefore make it easier to apply for a mortgage to refinance the short-term loan.
Using desktop valuations, reduced documentation, specialist underwriters, and experienced solicitors accustomed to short deadlines make bridging loans attractive for less hassle and efficiency.
Advias for non-UK resident bridging loans
- Experienced at assisting foreign nationals with a successful track record
- Local market knowledge and cultural/ language advantage. Offering our services in Mandarin, Spanish & Urdu
- Long-standing relationships with lenders, solicitors, accountants & translation services to ensure a smooth completion
- Long term relationship oriented service to continuously optimising your property finance
- Useful bridging tools like our bridging loan calculator