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Refinance to purchase a residential home in the Middle East: From application to approval within 6 hours

Our client’s background

We were approached by a well-established mortgage broker in the UAE on behalf of their clients, an expat couple now living and working in Dubai. The clients, who had previously lived in London, were renting out their former residential property in the UK while renting a home in Dubai. Their London property, valued at approximately £2.5million, had a small buy-to-let (BTL) mortgage of £665,000.

The couple’s goal was to purchase a new residential home outright in Dubai using a combination of cash savings and released equity from their UK property. To achieve this, they needed to release as much equity as possible, with a minimum requirement of £1.2million, while preserving a healthy portion of their cash reserves.

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Our clients’ situation

The primary applicant, Mr J, is a Senior Executive with a reputable international firm in the UAE. The requested loan-to-value (LTV) ratio exceeded our typical 65% cap for BTL properties. Additionally, the net rental income from the UK property only covered 50% of the debt servicing requirement.

To address this shortfall, we explored the possibility of ‘top slicing,’ leveraging Mr J’s personal income to supplement the rental income. Additionally, the couple’s monthly rental payments in Dubai would end upon completing the property purchase, freeing up further disposable income.

From the start, the clients and their broker demonstrated transparency and a willingness to collaborate, ensuring a structured and mutually beneficial solution could be achieved. Following detailed discussions and a joint meeting to review the financials, we proposed a tailored lending structure to meet their needs.

Following detailed discussions and a joint meeting to review the financials, we proposed a tailored lending structure to meet their needs.

Our client's solution

We took a careful and considered approach, assessing the clients’ financial situation and overall goals while maintaining open communication throughout the process. To align with their requirements and manage risk effectively, we structured a mortgage solution comprising:

  • 67% of the total borrowing as interest-only
  • 33% on a capital and interest basis
  • Total LTV: 75%
  • Term: 20 years

This structure enabled the release of £1,210,000 in equity from the UK property, which could be applied toward their Dubai home purchase. The total mortgage of £1,875,000 was split as follows:

  • £1,250,000 on an interest-only basis
  • £625,000 on a capital and interest basis

 

The application was processed as a Regulated Consumer Buy-to-Let mortgage. Once all supporting documentation was received, the case was submitted to our Lending Team and approved within six hours.

By prioritising transparency, collaboration, and understanding, we delivered a seamless experience that met the client’s needs and timelines. This case highlights the value of open dialogue and a client-focused approach, enabling us to achieve exceptional outcomes while upholding our professional standards.

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Email our credit specialists directly at [email protected] or call +44 (0)1624 645000 to speak to our client services team.

Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

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