It’s very common for British expats living overseas to buy property back in the UK.
You might want to invest in a property market you’re familiar with via a buy to let, purchase a home for your family to live in while you’re working abroad, or buy a new home for when you come back to the UK.
But the challenge that expats face is that not every mortgage lender accepts expats. And oftentimes, they’ll flat out tell you it’s ‘not possible’.
But just because it’s not possible through your existing UK bank or building society, it doesn’t mean it can’t be done.
There are plenty of mortgage lenders that provide a specialist service to expats buying property in the UK.
At UK Expat Mortgage, we know the ins and outs of this market, and have relationships with every lender that operates in the space. We can compare products, fees and rates for you, and get complicated deals over the line – just like we did for this expat living in Singapore.
The Client
Our client had been working in Singapore for several years for a well-known investment bank, but was now returning to the UK and starting a new position with a British firm.
While their employer had provided a generous relocation package that included temporary accommodation for the family while they looked for something permanent, our client didn’t want too much disruption to family life. Their preference was to purchase a property to avoid completing multiple moves in quick succession.
Having identified the right area for them based on local schools and the ability to commute into central London, they wanted to obtain pre-approval so they could move quickly on a property and not lose out to domestic buyers.
How We Helped
After reviewing the client’s situation, their chosen location, timeframe and budget, we advised that approval up to a purchase price of £3 million and a loan to value (LTV) of 90% would be sufficient. The client could have worked with a higher deposit, but they held some long-term investments that were better preserved.
Our first point of action was to obtain pre-approval from a private bank. This type of pre-approval is more advanced than a standard mortgage approval in principle (AIP), and meant that the client had the confidence to make offers on property and move quickly if required.
The bank is well known in the market, and the weight of their approval can help clients who are looking to move quickly on high value property. Without a pre-approval and as an international buyer, an estate agent may have less confidence in their ability to complete in a timely manner. This could impact the vendor’s decision if multiple offers are received.
The pre-approval process can take a few days, and requires a full review of all the information required for a mortgage application. And where a client is moving between countries, this also includes written evidence of the remuneration and terms of employment. Often, clients are still negotiating this with their employer – however, it is something we approach diplomatically in order to obtain sufficient information without rushing this important process for the client.
The client found a large, detached property for £2.8 million, and was successful in having their offer accepted. The property was recently renovated and required no work, which was perfect for the client and their family.
Following a valuation, we secured the mortgage offer swiftly, and the client was able to move directly back from Singapore to their new home.
The mortgage was structured as interest only with annual capital reductions, which fit well with their bonus structure. This ensured the monthly payments were not high, but importantly, the mortgage would still be gradually repaid over time.
Working with a UK-based mortgage broker is key to the approval process for this type of transaction. The established relationship and understanding of a bank’s appetite and requirements can be extremely beneficial for a ‘new to bank’ client. And we can also communicate effectively with estate agents and lawyers in the UK.
A whole of market broker such as ourselves can also advise across the entire market. So, if a more suitable lending options is available, we will always propose it.