UK mortgage without a credit footprint

UK mortgage without a credit footprint

I’ve not lived in the UK for 20+ years, is it really possible to get  a UK mortgage, especially when I have no credit footprint ? 

A common question from the worldwide expat community. If you went back 7-8 years ago, there would be no lender permitting this scenario. However UK lenders are fighting for business, and many Expats are financial stable, and are seen as a worldly wise and savvy group to explore. 

At the outset most expat lenders want the borrower to either own already a UK property or have a credit footprint. However there are a number of bespoke lenders who don’t need either. 

So in effect they will permit a First-Time Buyer, Expat with No Credit footprint in the UK, additionally, if a UK bank account is required, we can advise on some of the mobile app banks that can be opened in minutes from worldwide locations, that will start to create a credit footprint. 

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]

Live in Spain and want a property in the UK

Live in Spain and want a property in the UK

I live and work in Spain but I want to own a property back in the UK? 

I often get asked this question, and it seems to tie in with concerns around Brexit. I suppose many UK expats would like to cover all bases should they have to return to the UK, and not have to start all over again in the property market. 

So can UK expats earning in Euros get a new ‘first time buyer’ mortgage in the UK ? the answer is yes, but it does depend on the propertys stated use at the outset. 

Firstly, If the property is to initially let out to a tenant, with no immediate intention to return to live in it, then amazingly it is easier to obtain an Expat BTL for first time buyers. 

Secondly, If the requirement is for personal use, to reside in, very few lenders will permit this, however there are some. 

Thirdly, if you want to have both tenanted use and/or personal use, like to do a holiday let / city let with the property, then this is probably the rarest mortgage to find. However as a skilled specialist expat mortgage broker we have some options for this too !

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]

Unusual Expat Mortgage enquiries

Unusual Expat Mortgage enquiries

What is the most unusual Expat, foreign national mortgage enquiry you have ever had?

Love this question.. I get lots of different scenarios being an Expat mortgage advisor for UK and Overseas property.

Ok let me think… So I had an enquiry from a Pakistani National (living in France, Eu right to reside) he owned a couple of UK properties held in an offshore ltd company in Channel Islands. Properties worth around £2 Mil 

He wanted to refinance and release some capital to purchase a property in South of Spain near Marbella, topped up by a Spanish Euro mortgage.  So this was a Foreign currency purchase with 100% finance. 

I was able to source an offshore lender, who would consider UK property and release 50% loan against value this was £1Mil and covert to euros with a 60% loan against the Spanish property of €1.67Mil

Total; 

  • Cap Raise €1.17M + Spain Lending €1Mil   total €2.17M  to include purchase costs at 15% 
  • Property purchase in Spain of €1.67M.   

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 Mortgage rates for Expats

UK Mortgage rates for Expats

What sort of mortgage rates can I expect to pay as an Expat with UK property ?

Mortgage rates for expats are not as attractive as ‘standard’ UK mortgages, however this is because the lender is taking a greater risk, as the person they are lending to is not a resident where the property is.. for example, it is pretty easy to get UK mortgages priced at around 

1.75%  > 2.1 %  UK standard market   ( as at April 2019) 

Compare that with Expat lenders:

2.89% > 4.14%  Expat ‘Buy to Let’ market   ( as at April 2019) 

So in many cases there is a 1 – 2% differential.  But it is not a crazy differential and if you reside in a place like Dubai where there is no income tax, you may be happy to accept a slightly higher mortgage rate. 

Additionally there are usually entry fees for expat mortgages such as a valuation and application fee. It would be wise to budget 1-2% for these too.

What factors increase the rate? there are a number of reasons : (not exhaustive)  

  • Non sterling income – currency risk
  • Earning below £25,000 – affordability risk
  • Type of property  – if above or near commercial 
  • Type of tenant – student let versus standard 
  • Non UK tax payer 
  • Only getting income in a foreign currency 

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]

Whats the oldest an Expat can take a UK mortgage to

Whats the oldest an Expat can take a UK mortgage to

As an Expat residing overseas, what is the maximum age I can take a UK mortgage to? 

A really good question, most expats with a mortgage in the UK are likely to ‘rent’ out their property under an AST (Assured Shorthold Tenancy) , if this is the case and the person renting is not a relative, it is more straight forward, because under UK mortgage regulations, this type of mortgage is a BTL and is not regulated. 

What this means is the terms you can obtain are more flexible including when the mortgage term can finish. Most Expat BTL lenders permit a term to age 85. However some even permit a 90+ term end and one or two have a ‘no max age’ at term end. 

Why have a mortgage to your 90’s ?? sounds crazy… Well remember as a BTL mortgage the tenant is in effect paying the mortgage while you can use your own funds for other purposes, and as rates are pretty low, this frees up your own capital to enhance your lifestyle or invest for higher returns. 

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]

How much can an expat borrow against the value of a UK property

How much can an expat borrow against the value of a UK property

Im an Expat wanting to buy back in the UK so what is the maximum I can borrow against the value?

Many Expats are earning in high paying professional roles in Accountancy, legal and Gaming worldwide and they would prefer to re-invest back in property in the UK, a region they know well and where there is added benefit of a housing rental demand, more secure regulations and decent rental yields! 

So how much can an Expat borrow..?  if the property is to rent out to a generic tenant then the max available currently as an Expat BTL is 80% more likely is 75%  with rates from 2.89% 

Many Expat lenders stipulate a min loan size or property value of £75,000 

Additionally, some Expats want to buy, but not to rent it out, it will be their property to reside in, but not just yet. This is called a Buy to Live mortgage, very few lenders offer this, but there is a possibility of 85% loan against the value.   Rates from 3.3% 

There a definitely less barriers than a few years ago to enter the UK property market as an Expat.

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]