Mortgage for non-resident in UK

Amodeus

Hello everybody!

My friend, property developer from Russia, wants to begin such business here, in UK. And he asked me if it is possible for him to get a mortgage here in UK? If the answer is yes then what banks or building societies (or may be any other company) can give him mortgage and on what conditions (I mean in what case they will give him money)?

Of course he interested in mortgage with the lowest interest rate but all variants will be interesting because average mortgage interest rate in Russia is much higher than the largest interest rate here (it begins from 12% APR + many different fees and penalties, rate is fixed and term is from 1 to 20 years in most banks).

I have tried to search information about it but I have find neither positive nor negative answer.

Thanks in advance.

Vitaly

Conrad

Firstly developer loans will be expensive, from about 9% - 13%. Developing is a business so the rates reflect business risk.

Some small developers use buy to let loans instead which have rates around 5.7% - 7%, but they will not be accepted if 'development' is mentioned.

Secondly your freind has no UK credit record so I suspect he will struggle as he is an unknown quantity - its not for a Bank to try and decipher Russian records - that would be impossible.

I think the only way will be a non status loan limited to about 60% (possibly 70%) at about 12% rates. I know of lenders that do this. The work is considerable so up front fees will be charged regardless of whether he goes ahead.

WHAT ABOUT THE MARKET HERE?
Anyone with HALF a brain would not develop now in a falling market. Does your freind not watch worldwide business news given he's looking at enterprise in a new land?

Amodeus

Thank you for your answer.

Lets begin from the end. It is not my matter why he wants to do it in UK. It is really not my matter. May be he has some ideas. He just asked me about mortgages. May be he wants to build or repair some cheap properties and then sell them for higher price. I don't know. He just asked me to find information about mortgage.

Then, as I understood you said that it is possible for non resident to get a non status loan. Are you sure? I mean to borrow at least 60% of the property price. 12% of the interest rate is not really bad interest rate in this situation, you know! Would you please name at least on company which can give such loan?

Of course UK banks won't be able to check the russian credit history. Moreover in our contry (I am from russia too, but now live in UK) having credit history is not an obligation. You can have it, but also you can said to your bank not to send any information to credit history bureau. And bank won't do it!!! I have worked in bank in Russia and now this system quite good.

Thanks in advance.

Vitaly.