Balancing a Foreign National’s Financing Priorities

Loan Amount:
£1,500,000

Property Value:
£2,000,000

LTV:
70%

Our ability to overcome difficult backgrounds extends to those with overseas origins. A foreign national investor recently turned to us to raise funds. While we had thorough details on how our finance would be used, we had to address the client’s complicated payment history.

As a result of previous payment issues, the client was under pressure to act quickly, and find a solution. Whilst this would have de-railed their plans on the high-street, we like to look for solutions, rather than reasons to say no.

Our underwriter got to work, looking at the borrower’s background and seeing what could be done to make it work.

We don’t reject risk outright, we adapt to it

The assigned underwriter took an existing property held by the borrower to secure the loan. Given the security property held a lot of potential, this balanced the associated risks of their adverse credit history.

The exit strategy is always an important part of any deal, and in this case there were a couple options open to the borrower which we knew were solid plans, regardless of which path they decided to take.

With all the information at our disposal adequately checked, verified and in order, we were happy to proceed and provide the finance the borrower needed to continue with their business and property plans.

Remaining flexible to a range of overseas setups

Historical missed payments, cashflow concerns, and perceived overseas complications can all prevent an investment from progressing on the high street. If you add tightening lending from mainstream lenders into the mix, it makes the current market very difficult for foreign investors to operate in.

But, we design our products with these complications in mind. All our niche loans are available to property investors from anywhere in the world, barring sanctioned countries.

We can also adapt to a range of complicated structures, all the way from offshore companies based in Hong Kong, through to Irish trusts.

If you think your situation is too complicated to handle, try us.

FAQs

Are there any overseas investors you don’t accept?

We work with a wide range of overseas investors, including those using offshore companies and trusts, but there are some restrictions. We cannot lend to individuals or entities based in sanctioned jurisdictions or countries flagged for high financial crime risk. Aside from these exceptions, we often support international borrowers that other lenders may turn away.

Will you work with overseas investors with credit history issues?

Yes, we can support overseas investors even if there are blemishes on their credit history. We focus on the strength of the asset, the viability of the exit strategy and the overall structure of the deal rather than relying solely on credit scoring. Our approach means we can consider cases involving missed payments, historic defaults or where mainstream lenders have declined an application.

Why are specialist lenders often more flexible than high street lenders?

Specialist lenders like us are designed to work outside the rigid tick-box criteria of high street banks. We have in-house credit teams and streamlined processes that allow us to assess each deal on its individual merits. This flexibility enables us to move quickly, take on complex cases and structure solutions tailored to unique circumstances, whether that involves unusual property types, overseas ownership, or challenging timelines.

Why do I need to have an exit strategy?

An exit strategy gives us clarity on how the loan will be repaid at the end of the term. It could involve refinancing, selling the property, or another planned event. By having a clear exit in place, we can structure your facility to align with your objectives and ensure a smooth transition when the loan reaches maturity. This also helps us deliver the confidence and speed needed for time-sensitive transactions.