If you are a UK expat looking to secure a mortgage in the UK, you may face additional challenges as not all lenders provide mortgages to clients based overseas. However, there are mortgage solutions available and expats can find and secure a mortgage that meets their needs. This webpage is designed to provide the information and resources you need to understand the expat mortgage process and find the right expat mortgage options available to you.
What is an expat mortgage?
An expat mortgage is designed explicitly for non-resident UK nationals looking to purchase or refinance a property in the UK. Expat mortgages are typically offered by a few high street lenders and some more specialist building societies. Expat mortgages can have different terms and requirements than a standard residential mortgage and may be subject to additional restrictions. For example, expat mortgages may require a larger deposit, higher credit score / profile and they may also have higher interest rates or fees due to the added risk for the lender.
It is essential for expats and all clients, to consider all their mortgage options carefully and to compare rates, fees, and terms before making a decision. It may also be helpful for expats to seek the advice of a financial professional or mortgage broker familiar with the expat mortgage market.
What are the differences between an expat mortgage and a domestic mortgage?
Expat mortgages and domestic residential mortgages are similar in that they are both types of mortgage loans used to finance the purchase of property.
However, there are some key differences between the two:
Eligibility: Domestic residential mortgages are available to UK residents who pay UK Tax, while expat mortgages are for non UK resident applicants who may or may not pay any UK tax. As a result, the eligibility requirements for expat mortgages may differ from those for domestic mortgages.
Documentation: Expat mortgages may require additional documentation to verify the borrower’s identity, creditworthiness, and ability to repay the loan. This may include proof of income in a foreign currency, documentation of foreign assets or collateral, and other financial documentation.
Interest Rates and Fees: Expat mortgages may have higher interest rates and fees compared to domestic mortgages due to the added risk for the lender.
Deposit / Equity: An expat mortgage would require a larger deposit/equity when compared to a standard mortgage due to the added risk involved for the lender. It is essential for expats to consider their mortgage options carefully and to compare rates, fees, and terms
before making a decision.
What challenges do expats face when applying for a mortgage?
There are many challenges that people may face when arranging an expat mortgage such as:
Limited Credit History: Expats may have limited or no credit history, which can make it difficult for them to qualify for a mortgage. This is because lenders use credit history to gauge the borrower’s financial stability and ability to repay the loan.
Proof of Income: If their income is in a foreign currency this can make it harder for them to secure a mortgage.
As a broker we have access to many specialist expat mortgage lenders to help clients with the challenge mentioned above.
Can you arrange an expat buy-to-let mortgage?
Yes – It is possible to arrange an expat buy-to-let mortgage. You can see why an expat buy-to-let mortgage appeals to many people; it can generate an income, helping to fund your own expat lifestyle and could be a good long term investment. When it comes to an expat buy-to-let mortgage, before completing on any purchase you should get property tax advice so you fully understand your tax requirements.
Is it worth speaking with a specialist broker to arrange an expat mortgage?
It can be beneficial for expats to discuss their options with a specialist broker when arranging an expat mortgage. This is because a specialist broker can help expats navigate the process of securing a mortgage in the UK and offer valuable insights and advice based on their expertise and experience in the expat mortgage market.
Some specific benefits of working with a specialist expat mortgage broker include:
Expertise: A specialist broker has a deep understanding of the expat mortgage market and can help expats understand the different mortgage options available to them, as well as the terms, rates, and fees associated with each option.
Access to a wide range of options: Specialist brokers often have relationships with various lenders and financial institutions, giving expats access to a broader range of mortgage options than they might find on their own.
Streamlined process: Working with a specialist broker can help expats streamline the mortgage application process by handling much of the paperwork and communication with lenders on their behalf. This can save expats time and stress.
Personalised advice: A specialist broker can provide customised guidance based on the expat’s circumstances and financial goals. This can help expats make informed decisions about their mortgages.
Can you get an expat buy-to-let mortgage with bad credit?
Yes – We have lenders available that can provide expat bad credit mortgages and the options you have available will depend upon when the bad credit was registered, what type of debt it was and if it has now been satisfied.
How to explore your expat mortgage options with The Money Hub
If you are looking to arrange an expat mortgage, help is available. Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.
If you are an expat and looking to purchase a property in the UK on a buy to let basis, you will have to put down a deposit of at least 25%. Before taking out an expat buy to let mortgage you should get tax advice to see if you would be better off to purchase the property in a limited company name or in your personal name.