It’s not hard to imagine why people take the opportunity to go and work abroad, especially when the British weather is grey and wet. But what happens if you move abroad and need a mortgage or remortgage of your existing property?
Many Brits decide to take the plunge to move abroad, for either work or pleasure. A number of these expats like to keep a property in the UK to hold onto, providing a source of income and a place to return to should they wish. However, sourcing property finance outside of the UK can be more difficult.
Limited number of lenders
One main reason why sourcing a mortgage as an expat is more complex is due to the limited number of lenders in this market. Very few high street banks will offer mortgage products to expats, so applicants will be looking to specialist lenders that may only be available through a mortgage broker.
Typically, the rates for these types of mortgage products are higher than compared to living in the UK. Borrowers will also find more requirements and criteria to meet, as risk-averse lenders will be wary about the case. As such, navigating these complex applications will be best facilitated with the support of an experienced broker who understands the market and what the specialist lenders are looking for.
Is your country on the list?
As well as limited products, lenders will also restrict their list of countries from which they will accept applications. Furthermore, some lenders may have tighter requirements for some countries, such as payments needing to come from a UK bank account or the applicant working for a large organisation with a UK presence.
Further Application Requirements
Once you have sourced a product that will accept your living situation, lenders will want to dive deeper into the details. You will need to be able to provide a UK and overseas credit history, which will help lenders understand how long you have lived as an expat, and information about any intentions to return to the UK.
It is also important to consider the UK correspondence address you provide, as this cannot be a PO box, so you will essentially need to show that you still have a UK base.
In terms of repaying the mortgage, your lender will require you to pay out of a UK based, sterling bank account. If you intend to use your rental income to repay the finance, then it is likely that lenders will have no issue. However, if you intend to use other income that is non-sterling, you may be stung by exchange rates.
Whilst getting a mortgage as an expat may seem like a minefield, engaging the expertise of an experienced broker will mean they can review your personal situation and recommend the right lender for you. If you are looking for an expat mortgage or remortgage, call us on 0345 345 6788, or submit an enquiry today and one of our brokers can help you today.
