Expat mortgages (UK)

An expat mortgage is designed for UK nationals living abroad who want to purchase a property in the UK. These mortgages are tailored to meet the unique needs of expats, taking into account their foreign income, credit history, and other factors that may affect their ability to secure a mortgage. Whether you’re looking to buy a primary residence, invest in a buy-to-let property, or purchase a holiday home, an expat mortgage can provide the financial support you need. With the right expat mortgage, you can navigate the complexities of buying property in the UK while living overseas.

Yes, expats can apply for a mortgage in the UK. The process will differ from that for a UK resident.

Owning a home in the UK can offer you a safety net if you return to the UK. It can also help if you're worried about rising house prices while away.

Lenders see expat buyers as riskier than borrowers living and working in the UK. So, expats applying for a UK mortgage may find that lenders require more from them to approve their mortgage.

The key differences might include stricter lending criteria and the need for a bigger deposit.

Some lenders will also ask to see a UK passport and your UK bank account details.

To be eligible for an expat mortgage, you must meet certain requirements, which may vary depending on the lender.

These requirements often include being a UK national living abroad, having a stable income from employment or self-employment, and maintaining a good credit history in the UK.

Additionally, you will need a sufficient deposit, usually 20% to 40% of the property’s value, and must meet the lender’s affordability criteria, considering your income, expenses, and other financial commitments.

A UK bank account and other forms of ID, such as a UK passport and driving license, are also essential. Since eligibility requirements can vary, consulting with a mortgage broker specialising in expat mortgages can help you find the best options for your situation.

To improve your chances of getting an expat mortgage, consider maintaining a good UK credit history by keeping up with payments on any existing debts and credit cards. A significant deposit can demonstrate your commitment to the mortgage and reduce the lender’s risk.

Having a stable income and employment history can also help alleviate concerns about your ability to repay the mortgage. Keeping some form of financial association in the UK, such as a UK bank account or credit card, can further demonstrate your connection to the country.

Working with a mortgage broker specialising in expat mortgages can be invaluable, as they can help you navigate the process and find the best options for your situation.

Common challenges faced by expats applying for a UK mortgage

Expats may face several challenges when applying for a UK mortgage, including higher interest rates and fees due to the perceived higher risk of lending to expats.

Stricter lending criteria may require a larger deposit or a higher income, and obtaining a mortgage can be difficult due to a lack of UK credit history or a limited understanding of the UK mortgage market. The mortgage application process can be complex, particularly for those unfamiliar with the UK mortgage market, and there may be limited access to mortgage products, as some lenders may not offer mortgages to expats or may have limited options.

However, with the help of a mortgage broker who specialises in expat mortgages, you can overcome these challenges and find a mortgage that meets your needs.

It can be more challenging for expats to get a mortgage as fewer lenders are available for expats buying properties in the UK.

Some popular lenders that provide expat mortgages include:

• HSBC

• NatWest International

• Santander International

• Skipton International

Choosing the ‘best’ lender for an expat mortgage will depend on the buyer’s needs and circumstances. Speaking to a mortgage broker is your best bet when looking for the right lender.

There are more buy-to-let mortgages available to expats than residential mortgages. This is because people living abroad want to purchase a property they can rent.

If you plan to move abroad and wish to rent out your existing home, you'll need to remortgage your existing residential property as a buy-to-let.