UK Expat mortgage: complicated, often possible.
When considering a UK Expat mortgage: consult a specialist
More banks are offering suitable loans for expats seeking a UK Expat mortgage. But you do need to talk to the right lender.
If you are a UK citizen working abroad, you will invariably be paid in a foreign currency (but granted, not always). More lenders are coming to terms with this. So often not a problem, but you do need to talk to the right lender as most high street lenders struggle in this area.
As a UK national living overseas as an expat you may wish to retain your existing UK property. Or you may wish purchase a property to rent out in your absence. This provides an income and a base for the future when you return.
Lenders may view you as a riskier prospect as your income may be regarded as less stable than if you were UK resident. For example, the lender may be unable to obtain your full credit history if you have been out of the country for a while.
If your income is paid in an overseas currency there are lenders with specific criteria who will consider an application. However, the lender will likely apply a “hair-cut” to offset currency fluctuations. You may also be required to undergo further identity and income checks than other borrowers.
UK Expat mortgages may attract a higher interest rate and potentially require a higher deposit. A deposit of around 25% is not uncommon.
Another issue may be the country in which an expat is working. Lenders may be reluctant to consider an expat in countries where corruption is common, or money laundering is known to be prevalent. Another issue may the country in which the expat is working. Lenders can be more cautious in ‘high risk jurisdictions’, which are outlined by the UK Government here. It does not stop you getting a mortgage, but it can be harder work.
Also check your tax status with HMRC. If you purchase and rent out a Buy-to-Let property you may be classed as a “non-resident landlord”.
How We Can Help
As you can see above, for a UK expat mortgage, we suggest you seek specialist advice.
We specialise in this area, so would encourage you to speak to one of the The Team just to see what your options are before progressing too far with an application. This will ensure you get a smooth experience when applying for your UK expat mortgage.
