UK properties for Expats

UK properties for Expats

Is there a maximum number of properties I can have mortgages on in the UK as an Expat ? 

The simply answer to this is NO, there is no maximum, there are some lenders that are called ‘Portfolio’ Specialist Lenders, so they can take multiple properties that are mortgaged and provide an all in one solution. Usually they will have a max lend possible like £2M-£3M 

However other lenders will also permit this so if your portfolio is larger than £2M-£3M then using multiple Portfolio lenders is the way to go. 

Obviously the more you borrow the more risk the bank takes so by having multiple lenders you spread the risk and can usually then get a solution to fit. 

Simon Murphy is an International Mortgage Broker who resides between Spain | Ireland | UK

Having been in finance for over 17 years & as a Qualified & FCA Regulated UK mortgage professional he can give expert mortgage advice to Expats Worldwide, UK residents & those considering buying abroad with a foreign currency mortgage. 

Testimonial

 Thanks for your help and dedication in securing my mortgage. Especially since Id changed my job role recently, without your intervention I may have lost the property! At last I’m packing boxes.. 

Mrs A (South West), Home Mover

Get In Touch

MY MORTGAGE DEAL

0044 (0) 7456 727 626
[email protected]

Mortgages in Spain and the UK

Mortgages in Spain and the UK

I live in Spain, can I have a mortgage in the UK and Spain at the same time?

Absolutely you can, it is easier to obtain finance in the UK, especially if you want to purchase or remortgage with the intention to let the UK property out, thereby the UK bank will consider the UK mortgage as being self funded by the rent that it generates. 

How do you work out affordability for a UK mortgage even if you have a Spanish mortgage too? Well as long as your personal income supports the Spanish mortgage adequately and you have enough for deposit and rainy day savings etc. then the UK bank bases its lending decision on the rent the property generates. 

For example. Suppose you own a UK property worth £300,000 and it generates rent of £895 pcm. 

A UK bank calculates that the amount able to be borrowed would be approx. £190,000   this is based on a stress rate of 125% at 4.5%.

Mortgage payments on £190,000 on interest only would be £568 pcm leaving a £327 pcm gross profit.

Simon Murphy is an International Mortgage Broker who resides between Spain | Ireland | UK

Having been in finance for over 17 years & as a Qualified & FCA Regulated UK mortgage professional he can give expert mortgage advice to Expats Worldwide, UK residents & those considering buying abroad with a foreign currency mortgage. 

Testimonial

 Thanks for your help and dedication in securing my mortgage. Especially since Id changed my job role recently, without your intervention I may have lost the property! At last I’m packing boxes.. 

Mrs A (South West), Home Mover

Get In Touch

MY MORTGAGE DEAL

0044 (0) 7456 727 626
[email protected]

UK properties for expats

UK properties for expats

I’m a UK Expat residing Overseas, can I buy a UK property to rent and use personally?

Ah..Ha   this is one of my favourite questions… why !! you may ask..  well up to recently mortgages fell into two camps either   1) Owner Occupier  or  2) Buy to Let (Tenanted)  this was vital to categorise because it would determine if a mortgage was classed as regulated or non regulated. 

Then comes along a scenario where a property is used for short term let ie: Holiday or air BnB but also may be used by owner or family at times. 

Where does this fit? 

Technically its still non regulated, because it is not a principle residential home and is more on the commercial side of things. 

Then to complicate further what if an Expat wanted to purchase one of these properties? .. Pleasingly there are a bespoke number of specialist mortgage providers who will consider Expats who are first time buyers, buying a property for Holiday/Air BnB lets with some personal use considered. 

This is an area that I think more lenders should consider, the yields on good holiday and city property are excellent, and with more routes to find short stays such as booking.com and homeaway.co.uk the property can maximise its potential. Additionally if a property owner also wants some personal use when they visit the UK, then they are also likely to take good care of it. 

Simon Murphy is an International Mortgage Broker who resides between Spain | Ireland | UK

Having been in finance for over 17 years & as a Qualified & FCA Regulated UK mortgage professional he can give expert mortgage advice to Expats Worldwide, UK residents & those considering buying abroad with a foreign currency mortgage. 

Testimonial

 Thanks for your help and dedication in securing my mortgage. Especially since Id changed my job role recently, without your intervention I may have lost the property! At last I’m packing boxes.. 

Mrs A (South West), Home Mover

Get In Touch

MY MORTGAGE DEAL

0044 (0) 7456 727 626
[email protected]

Switch mortgage to interest only

Switch mortgage to interest only

I’m an expat with a UK mortgage on repayment, how difficult is it to switch it to interest only?

This is fairly easy and can be done usually pain free especially if the property is being rented out and you can prove a level of personal income wherever you reside. 

Interest only lending is easier to source when the mortgage is for a property that is let out, because there are less regulations attached to landlord property in the UK. 

However you need to be aware the balance of the mortgage wont reduce when you switch to Interest only and you will either need to make provision to pay the mortgage off at the term end or you can simply opt to sell the property to repay the mortgage. 

There is also an option to overpay on the mortgage of around 10% of the total balance each year. Many lenders permit this for an Expat BTL mortgage. So in effect if you had a 10 year interest only mortgage and you paid a lump sum in each year of 10% you would have nearly paid off the balance by the term end penalty free. 

Simon Murphy is an International Mortgage Broker who resides between Spain | Ireland | UK

Having been in finance for over 17 years & as a Qualified & FCA Regulated UK mortgage professional he can give expert mortgage advice to Expats Worldwide, UK residents & those considering buying abroad with a foreign currency mortgage. 

Testimonial

 Thanks for your help and dedication in securing my mortgage. Especially since Id changed my job role recently, without your intervention I may have lost the property! At last I’m packing boxes.. 

Mrs A (South West), Home Mover

Get In Touch

MY MORTGAGE DEAL

0044 (0) 7456 727 626
[email protected]

Switching mortgages as an Expat

Switching mortgages as an Expat

I’m an Expat and my bank wont let me switch my deal or remortgage, can you help? 

 

This is not a surprising issue that many Expats face. Unaware of the consequences, expats may be speaking to their bank and alert them that they reside overseas, suddenly the bank changes the address and the mortgage dept then are alerted to a property that is either empty, occupied by family or tenanted.. This could be a breach of mortgage terms if the property is being let out without consent. What then happens? 

The correct process is to alert your mortgage provider that you plan to leave to be an expat. If this is a temporary arrangement, some lenders may be comfortable with the mortgage remaining as is. If you plan to let the property, then getting a form filled from the bank called a ‘consent to let’ would be required, the bank may have the right to apply a loading to your existing rate of around 0.5 -2% so your payments may increase.  

If you have not done the above and you don’t plan to return anytime soon, then sourcing an expat BTL remortgage will be essential. This takes the worry out of what your lender might do, and if you want a better rate than the ‘loaded’ consent to let deal, then an Expat mortgage could save funds in the long run. 

Simon Murphy is an International Mortgage Broker who resides between Spain | Ireland | UK

Having been in finance for over 17 years & as a Qualified & FCA Regulated UK mortgage professional he can give expert mortgage advice to Expats Worldwide, UK residents & those considering buying abroad with a foreign currency mortgage. 

Testimonial

 Thanks for your help and dedication in securing my mortgage. Especially since Id changed my job role recently, without your intervention I may have lost the property! At last I’m packing boxes.. 

Mrs A (South West), Home Mover

Get In Touch

MY MORTGAGE DEAL

0044 (0) 7456 727 626
[email protected]

Remortgages for Expats

Remortgages for Expats

I’m a UK expat residing in Europe / Dubai / Australia and I still own property in the UK. Is it possible to remortgage to release funds or to get a better rate? 

The simple answer is yes.. However there are very few lenders who will permit this, and most are not your usual high street banks, that’s why you may find it difficult to obtain with normal search software or standard mortgage brokers. 

Additionally some lenders that accept expat mortgages, only work with Specialist Mortgage Brokers, because more skilled advice is required. So even if you found a bank that does it, they may not permit you to apply, unless you use a mortgage broker. 

A good example of this type of lender is Vida .. Vida ‘who’ you say !..  Vida are a specialist lender and only work with more skilled mortgage brokers. Vida don’t have any branches and everything is handled online including Expat mortgages. 

So the good news is Expats have more options to remortgage than compared to a few years back, but it is recommended to use a mortgage broker skilled in aspects of Offshore | Foreign Income and Expat borrowing – Happy to assist any enquiries www.mymortgagedeal.co.uk/expats   0044 7456 727 626 

Simon Murphy is an International Mortgage Broker who resides between Spain | Ireland | UK

Having been in finance for over 17 years & as a Qualified & FCA Regulated UK mortgage professional he can give expert mortgage advice to Expats Worldwide, UK residents & those considering buying abroad with a foreign currency mortgage. 

Testimonial

 Thanks for your help and dedication in securing my mortgage. Especially since Id changed my job role recently, without your intervention I may have lost the property! At last I’m packing boxes.. 

Mrs A (South West), Home Mover

Get In Touch

MY MORTGAGE DEAL

0044 (0) 7456 727 626
[email protected]