We understand that purchasing a property when an expat can be difficult; however we believe that your journey should be one of simplicity, choice and expertise.
To explain what an expat mortgage is, we should first explain what it means to be an expat. An expat is someone who’s currently residing in a country that they’re not a national of. You’re a UK expat if you’re from the UK but live abroad.
An expat mortgage is a mortgage you’d take out on a property in the UK while you’re a UK expat – i.e. a UK national living abroad. This is different from an overseas mortgage, which is where you take out a mortgage for a property that’s not in the UK but overseas.
The type of mortgage that’s best for you will depend on your situation. Expat scenarios can be quite complex, which is why it’s best to speak with a mortgage broker; we can guide you through your options and make things simpler.
Expat mortgage rates tend to be slightly higher than typical mortgage rates due to the increased risk faced by lenders of having borrowers who live abroad.
Keep reading to find information on the process and for answers to some of your main FAQ’s.
You can also learn about the different types of mortgages and interest rates in our guide.
You can get expat mortgages and expat remortgages for residential and Buy-to-Let properties. They’re available on repayment and interest-only bases, as well as with fixed, tracker and discount rates.
Mortgage on a Main Residence in the UK
You may want an expat mortgage on a residential property if:
- You plan on moving back to the UK and want a property here for when you do
- You’re situated overseas but your family live in the UK and you want to buy a property for them to live in and for you when you return
Residential mortgages are available on repayment and interest-only bases. You may want your mortgage on a repayment basis if you’re purchasing a property that’s going to become your residence at some point, as you’ll likely want the balance cleared by the time you retire.
Buy-to-Let for Expats
You may want an expat mortgage on a Buy-to-Let property if:
- You’re looking to remortgage a residential property onto a Buy-to-Let basis because you’re about to move overseas
- You’re situated overseas and have consent to let on a UK property, but need to remortgage it onto a Buy-to-Let basis
- You’re situated overseas and are renting out your UK property – possibly under consent to let rules with your original lender – but want to remortgage it onto a buy-to-let basis to raise money
Almost all Buy-to-Let mortgages are interest-only.
It is possible to buy property in the UK as a British expat living abroad if you want to purchase a property for when you return or simply to rent out, but what’s available to you will depend on your situation. Speaking with an expat mortgage broker is the simplest way to find out what your options are.
Call us on 01634 968111 or send us an enquiry to learn more.
You can usually take out a mortgage to buy a property in the UK even if you work abroad, but the lender will often require that someone is going to be living in the property – e.g. family, tenants – or that you’ll be moving home at some point in the near future.
At The Residential Mortgage Hub, our consultants will talk you through your circumstances and what you’re looking to achieve with lenders who can deal with expats. These lenders tend to have a manual underwriting process that starts with an actual conversation, rather than filling in a form online for a computer to make a decision.
We’re used to working with people living in different time zones and work around your schedule.
The time it takes to arrange an expat mortgage will depend on your unique situation. Nonetheless, we do everything we can to ensure a fast turnaround that meets your moving commitments.
Most high street lenders don’t offer expat mortgages because they can’t easily credit search applicants who aren’t in the UK, therefore you’ll need an expat mortgage broker like The Residential Mortgage Hub for this kind of mortgage.
As an expat mortgage broker, we regularly help UK expats arrange mortgages for properties in Britain. Our team have access to expat mortgage lenders not available on the high street that can take into account complex income structures like family trusts, offshore investments, international wealth and multi-currency income profiles.
If you want an overseas mortgage, you could approach a UK lender with branches in the country in which you want to buy a property, or an overseas broker or lender.