£1.25 million mortgage secured for Hong Kong-based investment banker buying a UK second home

Client profile

Our client was an investment banker at Goldman Sachs, living and working in Hong Kong.

He wanted to purchase a property in the UK as a second home, using income paid in Hong Kong dollars.

Securing a mortgage for a cleint paid in paid in Hong Kong dollars

The client had not lived in the UK for around 10 years and needed guidance on how the UK mortgage market worked.

His situation was more complex because he was employed overseas, paid in Hong Kong dollars, and wanted to use foreign income to secure a UK residential mortgage. The property was also being purchased as a second home rather than his main residence at the time of application.

Although there were lending options available, the pool of suitable lenders was limited because many mainstream UK banks do not accept overseas income in the same way as UK-based earnings.

How Trinity Financial helped Goldman Sachs banker

We reviewed the client’s income, employment structure and residency position before approaching lenders able to consider high-value UK mortgage applications supported by foreign income.

A large international bank was selected as the most suitable lender. While the rate was not the lowest available in the wider UK market, it was a Bank of England-linked base rate tracker, which undercuts some of the current fixed rates available. It also provided the client with a workable solution at a time when options were scarce.

The application took nearly two months to reach a mortgage offer, which is longer than normal. The bank required additional time to get comfortable with the case, and wider geopolitical disruption caused further delays. Despite this, the client was able to exchange contracts.

The £1.25 million mortgage result

The final mortgage was structured as:

• Lender: A large international bank
• Loan amount: £1,250,000
• Client income: Paid in Hong Kong dollars
• Mortgage term: 25 years
• Repayment type: Capital repayment
• Rate type: Two-year tracker rate
• Initial rate: Bank of England Base Rate currently at 3.75% plus 0.64% margin
• Follow-on rate: Standard Variable Rate, shown as 6.24% at the time of offer, although the plan was to remortgage to a more mainstream lender.
• Arrangement fee: £999 which is particularly low for an international lender
• Early repayment charges: None

The mortgage was arranged on a tracker rate with no early repayment charges, giving the client flexibility to make unlimited capital repayments at any time.

This structure was important because the client hopes to move back to the UK. Once he has UK payslips, there may be scope to review the mortgage and potentially move him to a standard UK lender product.

Outcome for the client paid in Hong Kong dollars

The client successfully secured a £1.25 million UK mortgage while living and working in Hong Kong and being paid in Hong Kong dollars.

Although the application process was slower than expected, Trinity Financial helped guide him through the UK mortgage market, identify a suitable international lender and secure the mortgage offer needed to proceed with the purchase.

The client was referred to Trinity Financial by a leading Earsfield-based estate agent.

Speak to a Trinity Financial adviser today

Foreign income mortgage applications can be more complicated, particularly for clients living overseas or returning to the UK after a long period abroad. The right advice can make a significant difference to the lenders available and the structure of the mortgage

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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