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. 

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

Whats the oldest an Expat 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. 

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

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

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.

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