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.UK Mortgage rates for Expats
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.
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
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