A couple of my colleagues are toying with the idea of buying flats in London. They are both in secure, well-paid employment but are both foreign nationals with work permits which presumably will eventually expire.
What view do UK mortgage lenders tend to take in terms of security in cases like this? Are interest rates raised or max LTV reduced?
Any particularly good/bad lenders to approach?
Thanks, AS.
An obvious question the lender would ask would be, what is going to happen at the end of the visa period?
Houses are not nearly as liquid as other assets, so if your colleagues' time is up and they intend to sell they may find they have a sterling mortgage to pay but dollars/rand to pay it with from overseas - a big risk from the lender's perspective.
It may be that your colleagues could put together a business plan based on the size of the deposit, expected repayments until visa expiration, and conversion of the properties to Buy to Let.
Have a chat with a Mortgage Broker / IFA, they don't cost anything and can provide more certain advice (such as which lenders would be more open to the idea).
Shano
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