by admin | Jan 2, 2026 | credit footprint, Expat mortgages, Mortgage rates, Re-mortgage, Switch mortgages, UK mortgage
Expats & Foreign Nationals – Opportunity calls in 2026
Welcome to the next edition of INSIGHTS covering complex UK mortgages
With the end of 2025, and now entering 2026, there have been a number of UK mortgage developments with UK banks and lenders that mean accessing the UK property market as an expat or Non UK resident with mortgage financing has never been more accessible.
We summarise a few of these developments and a case study to highlight one of our wins this year.
~
Age barriers basically gone – More lenders than ever are relaxing their maximum age at term end with some lenders allowing to age 85+.
Ltd co Buy to Let deals – A few more expat lenders have entered the Ltd co buy to let market for expats, and one or two even permitting up to 80% LTV.
Non UK nationals – This is an area of particular progress, many of the Non UK national clients have been hit with higher rates for both residential or BTL lending. Now one or two more lenders have entered the market adding more competition and driving down rates accordingly.
If you would like to discuss these or other aspects of your UK mortgage deal book a call here.
~ end ~
And now for that case study … an expat in UAE looking for a ltd co BTL mortgage !
Expat – UK ltd co BTL
Market Updates
- More Help for borrowers with a reduction to the UK BOE rate from 4.00% to 3.75% and its thought this will improve buoyancy in the market read the article here.
- Its a buyers market, asking prices are lower in December than at the same time last year.. but is a bounce to higher prices ahead ? Read the article here
- If you have never listened to the Property Hub team, we recommend doing so – Rob & Rob showcase their top 2025 episodes of the year. Get it here.
Next Steps…
Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.
A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.
Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymotgagedeal.co.uk
by admin | Dec 12, 2025 | Expat mortgages, Mortgage rates, Re-mortgage, UK mortgage
Expats ~ Have their Cake…with Top Slicing!
Welcome to the next edition of INSIGHTS covering complex UK mortgages
When it comes to BTL mortgages, lenders in the UK use a test to assess affordability called the ICR – Interest Coverage Ratio. This is where the rent from a property (assessed by the banks valuer) should meet the interest only mortgage payment and a little bit more usually to 125% – 145% of the interest only payment.
Here’s where there is a little complexity, on any mortgage deals that are not 5yrs fixed or more, so lets say a 2 or 3 year deal, the buffer is increased by 2%.
Here’s a quick example:
Property 1 Value £180K on 3 yr deal 5.25% (+2% buffer) = 7.25%
Rent = £900
ICR = £900 / 125% = £720 x 12 = £8640 / 7.25% = £119,172 max borrow
On the 5 year deal 5.45%
ICR = £900 / 125% = £720 x 12 = £8640 / 5.45% = £158,532 max borrow
You can see the difference a 5 yr deal makes with the ICR stress being less punitive. This example showcases the 5 year options that usually help to get to max lend of 75% or 80% on Buy to Let deals.
However in parts of the UK namely London and South East, even the 5 year ICR test, comes up short, because the rental yields aren’t at the same ratio to value as in other parts of the country, like Liverpool, Leeds, Manchester. The effect is if your buying a buy to let in London for £950,000 the likelihood is the ICR test may only enable you to borrow up to 60/65%
TOP SLICING Enters the mix..
More lenders are realising that the ICR test is a clunky tool, the effect of it is, a borrower with high affordability on £300K – £500K annual income would still be limited to what the rental ICR test was limiting the borrow capacity to, forcing the borrower to stump up more deposit.
Therefore Top slicing, allows the lender to use residual personal income to make up the ‘gap’ in ICR calculations and the level of borrowing the client needs. This is a game changer particularly for Higher value property where regional rent yields are not performing like other parts of the UK.
Example:
Property Value £1,250,000 on 5 yr deal 4.89%
Rent = £4250
On the 5 year deal 4.89%
ICR = £4250 / 125% = £3400 x 12 = £40800 / 4.89%
= £834,355 max borrow
MAX LTV 66%
Applying Top Slicing
= £937,500 (75%) Max borrow
In Summary, if your considering a Buy To Let deal then speak with your specialist broker or us ! and we can guide on whether a 5 yr deal is a best fit, additionally if the property is higher end and the rental ICR test is a big ask, it may be best to position the mortgage approval with a lender who is known to apply the Top Slicing flexibility, otherwise you get to post valuation and the deal turns sour, with the client having to find 5%-10% more deposit.
If you would like to discuss this or other aspects of your deal book a call here.
~end~
And now for something completely different… what about buying a 2nd home in London for own use as well as an income generating AirBnB / short term let, is this the best of both worlds ?
Expat – AirBnB & Own use
Market Updates
- UK biggest lenders have reduced rates to 2022 levels which is encouraging the market read the FT article here.
- What is ahead for the UK property market in 2026, 2027, 2028 ? well no-one can accurately predict, however this report may give some steer and the UK paints a very regional picture, so investors should analyse their hot spots carefully!
- We love the Property Hub team content – but how did Rob & Rob do in their 2025 predictions for the UK market & property. Their end of year pod is a great listen. Get it here.
Next Steps…
Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.
A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.
Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymotgagedeal.co.uk
by admin | Nov 27, 2025 | credit footprint, Expat mortgages, Mortgage rates, Re-mortgage, Releasing cash, Switch mortgages, UK mortgage
Autumn 25 Budget – Blunders, Blasting & Big Shake up!
The OBR blundered the releasing of their market report prior to the Budget Speech, the opposition Blasted the leak and maybe lastly the budget announcement was a Big shake up to the tax system, much of which affects homeowners and landlords.. or something in that order !
The 2025 Autumn Budget 2025 delivered by Rachel Reeves brings some tax-hikes on property income: from April 2027, property (rental) income tax rates rise by 2 percentage points — meaning basic, higher and additional rates move to 22 %, 42 % and 47 % respectively.
For high-value homeowners and investors, a new “mansion tax” (a high-value council-tax surcharge) is to be introduced from April 2028 on properties valued over £2 million.
Sigh of Relief…
The Budget did not add National Insurance on rental income — a relief — yet the higher tax rates on property, savings and dividends altogether weigh more heavily on passive (non-salary) income.
For expat investors or non-UK residents owning UK property, these tax changes make structuring and planning more critical (e.g. via ltd company structuring ) to enhance or maintain profitability.
For an independent viewpoint and 3 key take aways from the Budget here is a great video from Property Hub guys Rob & Rob who we love to listen to!
- Increased property-income tax rates
- Need for smarter structuring for expat investors
- Cash-flow & exit-strategy focus becomes more critical
2025 Budget – A Round Up
Moving Properties Personal Name to Ltd co ?
The Budget 2025 shook the market — higher taxes, tighter yields, and growing pressure on landlords. If you own UK property personally, now’s the moment many investors are asking: is it time to switch to a Ltd company? Watch the following video as we break down what’s changing and why your structure matters.”
Three key takeaways relevant to UK landlords and overseas/ex-pat investors:
- Rental-income tax squeeze is real — The video highlights that recent and upcoming tax changes are biting hard into profit margins, especially for higher-rate taxpayers.
- Company ownership increasingly attractive — With personal tax becoming tougher, holding property via a company appears more appealing: lower corporation tax on rental profits and the ability to deduct full mortgage interest. This could improve net yield for landlords and expat investors.
- Up-front costs & structure planning matter — The shift isn’t cost-free: transferring properties into a company can trigger SDLT (and possibly CGT), plus mortgage refinancing and legal/admin fees. For expat investors doing BTLs via Ltd Co — the long-term tax savings need to be weighed against these one-off costs.
There is one commonly discussed exception: if a property portfolio is held in a genuine business partnership (not just passive ownership) and that entire portfolio is transferred to a newly formed limited company — under certain conditions this qualifies for Incorporation Relief, which can defer or even eliminate both SDLT and CGT on transfer.
Book a call to discuss how we help with financing this scenario >> Here
Potentially Reduce Tax to Zero
Market Updates
Next Steps…
Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.
A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.
Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymotgagedeal.co.uk
by admin | Oct 28, 2025 | Expat mortgages, Re-mortgage, UK mortgage
Welcome to another edition of INSIGHTS a newsletter covering aspects of UK mortgages for clients with complex circumstances.
We’ll discuss how UK mortgage lending can be offered to ANY nationality and in over 200+ countries, be that UK expat clients living overseas or Non UK nationals recently arrived to the UK under a skilled worker visa or other.
Here’s a case study – 2 min video YouTube below:
Expat / Any Nationality
Foreign Nationals mortgages in the UK
ANY nationality can obtain a UK mortgage
Two typical cases we encounter as a specialist broker:
Situation 1 – Non-UK nationals new to the UK, very few lenders consider clients lacking Indefinite Leave to Remain (ILR), or if they do, they limit lending to 75%, requiring a substantial 25% deposit. With our advanced criteria checking technology, we can find lenders willing to offer up to 90/95% without ILR and a 5-year fixed option could improve affordability as demonstrated in the case study above.
But what if you live/work overseas earning non £GBP with your family in rented UK accommodation? and you wish to move them into their own home!
Situation 2 – UK Expat/Other Nationals – living outside the UK, earning non £GBP income seeking a mortgage for personal/family use. This is challenging as few lenders accept this situation since it’s not Buy to Let, prompting additional affordability checks. However, a few lenders are open to it, allowing UK expats up to 90% and Non-UK nationals up to 80% lending. While clients might not obtain the lowest rates, it’s still more economical than paying rent for family in the UK!
Market Updates
- The September ONS data is out with rents increased by average 2.8% in the UK. Interestingly there are also regional data to help you spot the property opportunities as a landlord read the article here.
- Things are improving for Expats!! wanting to buy for their own/family use with on Expat lender increasing their loan to value to 90%, you will need a good credit score and earnings of at least over £50K to qualify.
- Want to merge personal name property into ltd co ? this is a must see video on bringing property income & stamp duty tax to ZERO with these hints and tips from a UK tax specialist watch here>>
- See where average property prices sit year to date with this Nationwide report for September
Next Steps…
Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.
A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.
Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymotgagedeal.co.uk
Recommend a Friend
Share our service with a friend or colleague who might find it helpful. If they quote the code INSIGHTSMMD they’ll receive a £99 discount on fees, and you will receive a £50 voucher.
by admin | Jun 10, 2019 | Expat mortgages, Re-mortgage, Switch mortgages, UK property
Ah..Ha this is one of my favourite questions… why !! you may ask..UK properties for expats: 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
MY MORTGAGE DEAL
0044 (0) 7456 727 626
INFO@MYMORTGAGEDEAL.CO.UK
by admin | Jun 3, 2019 | Expat mortgages, Re-mortgage, Switch mortgages, UK property
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
MY MORTGAGE DEAL
0044 (0) 7456 727 626
INFO@MYMORTGAGEDEAL.CO.UK
