Glasgow Finance Explained for International Investors
We get asked regularly if international investors can get finance on properties purchased in Scotland, or if there is any minimum value or limitations on any property. The good news is that you can get finance on properties at any value in Scotland. There is no minimum value.
Can I get finance on any property purchases?
Yes, all properties that Alliance Property Group sell can all be financed after initial cash purchase.
Is there any minimum value on the finance available?
No. There is no minimum value.
We have sold properties from £30,000 upwards to international investors who have all refinanced their properties successfully.
Who Can Apply for Finance and What is the Criteria?
- Individuals, Sole Traders, LLPs, Partnerships
- Limited Company Applications
- Portfolio landlords accepted
- Expat & applicants without permanent rights to reside in the UK accepted
- Employed and self-employed applicants accepted
- Assessment based on rental income not earned income
- First Time Buyers accepted
- No maximum age where rental income meets or exceeds the required interest coverage ratio.
Any limits on the number of properties I can finance?
- No limit on the number or value of properties in the investor’s portfolio
- No minimum value on the property value
- Most property types are accepted
- Properties with Japanese Knotweed also accepted for finance providing treatment plan in place.
Is there any limitation in finance for Guaranteed Rent or Social Housing Tenancy Agreements?
- Guaranteed Rent Scheme properties and tenancy agreements are accepted
- Housing Association tenants accepted
- Most tenancy agreements accepted subject to referral
Are there any limitations on property and contraction types?
All construction types considered including:
- Non-standard construction including timber framed properties.
- Ex council flats
- High rise flats accepted, no maximum storeys.
- Studios including ex council.
- No minimum square footage, any size considered.
- Over 300 types of concrete types accepted.
What is the criteria for affordability?
- No personal income is required for buy to let applications.
- The affordability assessment is calculated using the rental income alone.
- The maximum loan to value is 70% when the property value is below £60,000 or for a refinance application.
- The portfolio as a whole should not exceed 75% LTV.
- The property does not need to have a tenant in situ at time of application, but to apply for a mortgage however the lender will use 90% of the projected rental as confirmed by the lender surveyor report.
- For UK Limited Company applications, the rental income or projected rental income must be at least 25% more than the mortgage payment.
Simplified Rate Table for First Time International Investors
BBR = Bank of England Base Rate
Reversionary Rate = Interest rate applied after the fixed rate
Broker Arrangement Fee: Tiered from 2.5% - subject to a minimum of £795
Alliance Property Group Disclaimer
This document is provided for information purposes and is correct as of 24/08/2019.
Alliance Property Group is not providing any financial advice.
You should always consult a mortgage professional before entering into any mortgage contract.