If you’re returning to the UK and buying a new property for when you arrive, it’s well worth trying to secure the mortgage on a UK residency if you have the option to. In some cases, it’s even worth delaying purchase for 6 months while you secure a UK address and build a UK credit presence again – simply due to the savings you’ll make on your interest rate.

Here’s a great example of how it can be done.

The Client

Our client was a UK expatriate living in Italy who was planning to return to the UK.

She had identified a property to purchase ahead of her move back, valued at £465,000, and required a fairly high loan-to-value (LTV) mortgage of 85% – relatively hard to place for expat mortgages.

Although she had a UK-based job lined up, her employment had not yet started, and her income would be in GBP rather than Euros—a significant change in her financial situation. Additionally, she owned a buy-to-let property in the UK that was not self-financing, which added complexity to her mortgage application.

How We Helped

At UK Expat Mortgage, we specialise in helping clients navigate complex scenarios like this. For this client, we focused on presenting her as a strong candidate for a high street mortgage.

One key strategy was utilising her parents’ UK address for correspondence. This allowed her to qualify for a standard UK residential mortgage rate, avoiding the higher costs associated with expatriate-specific products.

It’s important to present the application in the right way to ensure approval, but we can generally advise on the best approach depending on your specific situation, even if it means waiting a few months to establish a credit footprint.

We compared the potential costs if the client had been unable to leverage a UK residential address.

For instance, Suffolk Building Society offered a two-year fixed rate expat mortgage at 5.795%, with a £1,198 lender product fee, a £300 valuation fee, and a maximum LTV of 80%.

Instead, we secured a UK resident mortgage with Santander at a two-year fixed rate of 4.69%, with a £999 lender fee, free valuation, £250 cashback, and at 85% LTV.

The savings for the client were substantial:

  • Lower Interest Rate: 4.69% vs. 5.795%
  • Lower Fees: £999 vs. £1,498 (product + valuation fees)
  • Higher LTV: 85% vs. 80%

Our tailored approach enabled the client to secure high street rates that are typically reserved for UK residents, resulting in considerable financial benefits. This case highlights how strategic planning and expert knowledge can overcome the challenges of expatriate financing to deliver outstanding results.