Many expats turn to their old UK bank as the first point of call to enquire about getting a mortgage as an expat – and usually, they get turned down.

Why?

Most high street banks simply aren’t set up for expat mortgages – they don’t have specialist underwriters in place for that, and their focus is on generic UK mortgages they can churn out in bulk (after all, they have so much business coming through the door they can afford to be picky).

But remember – a mortgage advisor from a high street bank can only advise on its own products.

So, if they can’t offer an expat mortgage themselves, they’ll simply tell you “it’s not possible“.

When in fact it is possible through other lenders – you just need to know those lenders that specialise in expat mortgage products.

This is where an expat mortgage broker comes in, such as UK Expat Mortgage.

We have connections with high street banks, international building societies, specialist expat lenders and private banks that can facilitate a wide range of expat mortgage solutions between them.

When you apply with us, we get a thorough understanding of your income structure, currency earnings, residency, property aspirations and mortgage requirements, and then we take your application to the best lenders for you.

We are independent – so we’re not tied to any one lender and are completely unbiased in our advice. Instead, we let the rates and products do the talking – getting the best deal for our clients is always at the forefront of our work.

Here’s how the process works for expats, what you’ll need before you apply, what the lending criteria is, and much more, so you can feel confident in knowing whether an expat mortgage is possible (and the right decision) for you.

Key Takeaways

• An expat mortgage is a home loan provided to non-UK residents looking to purchase a property in the country.
• Eligibility criteria for expat mortgages includes income requirements, residency status, and credit history.
• Applying for an expat mortgage requires proper documentation and lender selection.
• Expert advice from an expat mortgage advisor can help streamline the application process.
• Expatriates looking to buy investment properties can opt for buy-to-let expat mortgages in the UK.

What is an Expat Mortgage?

An expat mortgage is simply a UK mortgage designed for British Nationals that are now living abroad.

They can also be referred to as ‘non-resident’ UK mortgages, but these also cater to foreign nationals buying property in the UK, so ‘expat mortgage’ is the more accurate term specifically for expatriates.

Securing a mortgage in the UK as a non-resident can be a complex and challenging process.

Luckily, there are several types of expat mortgages available that can cater to your specific needs and eligibility requirements.

In this section, we will explore the different types of expat mortgages available, how they work, and what factors lenders consider when assessing eligibility for expat home loans.

How Expat Mortgages Work

Expat mortgages work similarly to regular mortgages in that they provide a loan for the purchase of a property. However, expat mortgages can come with different rates, terms, and eligibility criteria than standard mortgages, depending on the lender and the type of mortgage chosen.

Expat mortgage lenders will typically assess your eligibility based on various factors such as your residency status, income, credit history, and the type of property you plan to purchase. They may also consider the country in which you reside and work, as well as the currency of your income.

Factors Considered by Expat Mortgage Lenders

Eligibility Criteria	What it Entails
Residency Status	This refers to whether you are a UK resident or not. While you might have ties to the UK in terms of a credit footprint, UK bank account, and family living there, you won’t be a UK resident which reduces your options for securing a mortgage.
Income	Lenders will consider your income, including any bonuses, commissions, or rental income, to determine your affordability and eligibility for a mortgage. A big stumbling block here is foreign currency income – you’ll need a lender that can accept non-sterling income for your mortgage application.
Credit History	Lenders will look at your UK credit score and history, and often your local credit files too – if you don’t have a UK credit footprint or a UK bank account this can be an issue, but it’s not impossible. Speak to us if this is the case for you.
Property Type	The type of property you plan to purchase can also impact your eligibility for an expat mortgage. Buy-to-let properties may require a higher deposit compared to residential property for your family back home.

It’s essential to work with a reputable expat mortgage broker who can guide you through the process and help you navigate any potential challenges or issues that may arise.

Expat Mortgage Case Studies

Benefits of Expat Mortgages

Most expats are more familiar with the UK property market than that of the country they’re living in – simply because they’ve grown up there and may have bought UK property in the past, so are familiar with the process. So, it makes sense from an investment perspective to buy back in the UK.

Or, if you’re earning a good salary overseas while your family is still living in the UK, you’ll want that boosted income to go towards your home and directly improve your family’s quality of life. An expat mortgage can leverage that higher income for better borrowing back home, without having to wait to be back in the UK to reap the benefits.

• Expert Advice: One of the key advantages of working with an expat mortgage advisor is that they can offer invaluable insights into the UK property market and the available options for expat mortgages. We can help you compare different lenders, assess eligibility criteria, and identify potential challenges along the way.
• Flexible Options: Expat mortgages provide flexible solutions that cater to the unique needs of expats. They often offer longer-term loans, higher borrowing limits, and tailored repayment options that can help manage cash flow and accommodate for currency fluctuations.
• Competitive Rates: Many expat mortgage lenders offer competitive rates that are fairly comparable to those for UK residents. This makes it feasible to pursue your property investment goals without incurring excessive costs or interest charges.
• Buy-to-Let Opportunities: For those looking to invest in buy-to-let properties, there are specific buy-to-let expat mortgage options available. These options offer unique features and requirements that can help you maximize your rental income and build wealth over time.

Eligibility Criteria for Expat Mortgages

As an expatriate, buying a home in the UK can be a complex process. When it comes to securing an expat mortgage, there are several eligibility criteria you need to meet. These include:

1. Residency status: Most lenders require you to have a valid visa or work permit, and some may have specific requirements based on your country of residence.
2. Income requirements: Since expat mortgages are considered higher-risk loans, lenders typically have more stringent income requirements. You’ll need to demonstrate a steady and sufficient income to support your mortgage payments. If you’re self employed it can be more difficult, but not impossible.
3. Credit history: If you have a poor credit history, you may struggle to secure a favourable interest rate or even be approved for a mortgage at all – speak to us if you’re having difficulties as there are some lenders that may still consider your application.
4. Deposit size: Like any mortgage, expat mortgages require a deposit. The minimum deposit size required can vary depending on the lender, but you should be prepared to put down at least 25% of the property’s value.
5. Property type: Some lenders have restrictions on the types of properties they will lend against, such as new builds or leasehold properties.

It’s important to note that eligibility criteria can vary widely between lenders, which is why it’s worth shopping around to find a lender that meets your specific needs and circumstances.

Applying for an Expat Mortgage

If you’re considering buying a property in the UK as an expat, the first step is to understand the expat mortgage application process. While the process may seem daunting at first, with the right guidance and preparation, you can increase your chances of success.

Gather Your Documents

The first step in the expat mortgage process is to gather all the necessary documents. This includes your passport, proof of income, bank statements, employment contract, and any other relevant financial documents.

Find the Right Lender

Next, you’ll need to find the right expat mortgage lender for your needs. Look for a lender that specializes in expat mortgages and has experience working with international borrowers. We advise working with an expat mortgage advisor such as ourselves who can guide you through the process and provide valuable insights.

Submit Your Application

Once you’ve gathered your documents and selected a lender, it’s time to submit your expat mortgage application. Be prepared to answer detailed questions about your financial situation, including your employment history and income.

Undergo a Credit Check

As part of the expat mortgage application process, your lender will conduct a credit check to assess your creditworthiness. Make sure you know where you stand before applying, as this can impact your eligibility for an expat mortgage.

Wait for Approval

After submitting your application and undergoing a credit check, you’ll need to wait for your lender to approve your expat mortgage. Wait times can vary depending on the lender and the complexity of your application. Be patient and responsive to any requests for additional information or documentation.

Tips for a Successful Expat Mortgage Application

With proper planning and expert guidance, you can increase your chances of a successful application. Here are some tips to help:

• Start preparing early: As an expat, you may face additional documentation requirements or a longer application process. Start preparing the necessary documents and information early to avoid delays and increase your chances of approval.
• Maintain a good credit profile: Your credit history plays a significant role in determining your eligibility for an expat mortgage. Try to maintain a good UK credit score and a clean credit history if you can by leaving some accounts open in the UK.
• Seek expert advice: Working with an experienced expat mortgage advisor can provide invaluable guidance and support throughout the application process. We can help you understand the eligibility criteria, choose the right lender, and negotiate better terms.
• Be realistic: When applying for an expat mortgage, be realistic about what you can afford. Consider your income, expenses, and other financial commitments before committing to a mortgage payment. You may also want to explore options like fixed-rate mortgages or interest-only mortgages to better manage your cash flow.
• Understand the costs: In addition to the mortgage payment, there will be other costs associated with buying a property, such as stamp duty, conveyancing fees, and survey costs.
• Choose the right lender: Different lenders may have different eligibility criteria or requirements for expat mortgages. Explore your options and choose a lender that offers the best terms and rates for you.

Expats Mortgage Documents Checklist

Here are some of the documents that you need to prepare when applying for an expat mortgage:

Document	Description
Passport	A valid passport with at least six months of validity remaining.
Proof of income	Recent payslips, tax returns, employment contract, or other evidence of income and employment.
Bank statements	Recent bank statements showing your income, expenses, and financial transactions.
Mortgage statement	If you have an existing mortgage, a copy of your latest mortgage statement.
Property details	Details of the property you wish to purchase, including the purchase price, location, and other relevant information.
Proof of residency	Evidence of your residency status, such as a residency permit or visa.
Credit report	A copy of your UK credit report and any international credit reports you have.

Ensure that you have all the necessary documents in order before submitting your application to avoid delays or rejection.

Buy to Let Expat Mortgages

With the potential for rental income and long-term capital growth, a buy-to-let property can provide an excellent return on investment for expats while also serving as a toe-hold in the UK to return to.

When seeking a buy to let expat mortgage, it’s essential to consider the specific requirements and considerations that come with this type of investment.

You’ll need to assess the rental yield potential of the property, understand tax implications, and factor in additional costs such as maintenance and insurance.

It’s worth noting that lenders may have stricter eligibility criteria for buy-to-let expat mortgages than for traditional owner-occupied properties. You’ll typically need a higher deposit and potentially a solid track record of managing rental properties. However, with expert guidance from an expat mortgage advisor, you can navigate the process and find the right mortgage lender for your needs.

Advantages of a buy-to-let expat mortgage	Disadvantages of a buy-to-let expat mortgage
Potential for rental income Long-term capital growth Option to diversify investment portfolio Opportunity to build equity through property ownership	Higher deposit requirements Stricter eligibility criteria Additional costs and responsibilities as a landlord Risk of fluctuating rental market demand

Ultimately, a buy-to-let expat mortgage can be a rewarding investment if approached with care and thorough research. With the potential for ongoing rental income and capital appreciation, the benefits can outweigh the risks.

What Deposit Do You Need for an Expat Mortgage?

You generally need a 20% deposit for a residential expat mortgage.

Some lenders are willing to go higher than this for some applicants depending on your income and situation, while others won’t.

For buy to let expat mortgages, you generally need a 25% deposit.

Again, some lenders can go above this threshold in some cases, and others will cut lending off below this – it depends on the lender and your specific application.

To understand exactly how much you can borrow, how much deposit you’ll need and how much it could cost you in terms of rates and fees, book a free call with an advisor and we can walk you through the details.

For help with the process and to get a clear picture of your borrowing potential, speak to one of our expert mortgage advisors today.