Sandy Paterson
THE Prudential Regulatory Authority (PRA) who regulate mortgage lenders have been changing the rules again.
Just when you think everything has settled down nicely everything changes and a new set of criteria need to be considered.
For those of you who have tried to get a mortgage as a seafarer earning in Euros, Dollars or another foreign currency you will understand the difficulty faced. Having said that we have been specialising in seafarer mortgages for some time now and have a very high success rate.
What is the opportunity?
Interestingly, this time there may be a great opportunity for seafarers and yacht crew who are planning an Investment Property Portfolio, or already have one. One of the lenders we have been using successfully for yacht crew mortgages has recently confirmed some useful changes.
Currently, we can only help crew with mortgages for up to four properties in total (including main residence). This is a small number of properties for those looking to build a strong income in property. The good news is that the lender is increasing this to ten in the next couple of months.
New criteria
As always, these bits of good news come at a price. This time in the form of more detailed information being required to underwrite a Buy-to-Let mortgage as follows:
• Details of personal income will be assessed. A minimum of £25000 is needed before any discussion can take place.
• Clean credit history needed.
• Each individual property individual property will be assessed, valued and “stress tested” at 5.5% x 135%.
• The whole portfolio will be assessed, valued and “stress tested” at 5.5% x 135%.
• Your residential property mortgage will also be checked for affordability.
• For portfolio applications (over 4 properties), your landlord experience, use of letting agents and plans for expansion will all be assessed.
Maximum borrowing with this particular lender is increasing to £3.5 million and minimum deposit on a Buy-to-Let property is 25%.
Who can we help?
So, if you are a seafarer looking to build a UK property portfolio now is the time to get some help through the mortgage maze. We can help if you:
• Are buying in the UK.
• Are UK tax resident.
• Have a clean credit history.
• You could be a first-time buyer or first-time landlord or have an existing portfolio.
• Earning in Euro, US Dollar or 16 other currencies.
Why buy now?
Recent reports have suggested that the UK property market has slowed significantly due to Brexit uncertainty meaning prices have stabilised. There are a few other reasons:
• Mortgage rates in the UK are the lowest they have ever been.
• Lenders have the capacity and appetite to lend.
• Mortgage fees from some lenders are reducing.
• Dollar to Sterling and Euro to Sterling are extremely favourable for non-Sterling earners.
As seafarers earning in foreign currency you have a significant advantage due to exchange rates. In short: there has never been a better time to buy UK property, so call now to see how we can help!
Remember: Your property may be re-possessed if you do not keep up repayments on any loan secured against it.
Got a question? Then Ask the Expert and drop Sandy a line.
Sandy Paterson DipFA, CeMAP, MLIBF – Regional Manager
Blacktower Financial Management (International) Ltd – Mallorca Office
Tel: 971 42 59 86
Email: sandy.paterson@blacktowerfm.com
Web: www.blacktowerfm.com/locations/mallorca
Blacktower Financial Management (International) Limited is licensed in Gibraltar by the Financial Services Commission. Licence 00805B and is registered by both the DGS and CNMV in Spain.
Blacktower Financial Management Ltd is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England No: 35000648. Registered address: Mount Manor House, 16 The Mount, Guildford, Surrey, GU2 4HN, United Kingdom.
