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]