Expat Residential Mortgages – Not All Brokers can help…
Not all expat mortgages are Buy to Let. I was recently approached by an experienced UK landlord living in the UAE. He already had five UK Buy to Let mortgages and naturally contacted his usual expat mortgage broker when he wanted to buy a UK home for his son use when attending Uni.
The problem? His broker specialised in Buy to Let and was unable to advise on regulated residential mortgages. And there’s an important difference.
Buy to Let lending is primarily driven by the rental income of the property. Residential lending is based on you. Lenders assess personal income, commitments, overseas living costs and overall affordability. There can also be more documentation & regulated advice involved, which is why some brokers either cannot assist OR choose to specialise exclusively in BTL.
Yet demand for expat residential mortgages is growing, typically for three reasons that cause Expats the most headaches:
1. Uncertainty – Expats working on fixed contracts, particularly in the Middle East, want a UK home available should their overseas employment end.
2. Family needs – A spouse or children may need to return to the UK for schooling, university or family responsibilities.
3. Optionality – After years working internationally, many expats simply want a UK base and the freedom to return when the time is right.
With more lenders now considering Expat Residential cases and with deals up to 90% there has never been more flexible options available.
Case Study – Matt & Sara, UAE
Matt and Sara already owned two UK BTL investment properties. With Matt having two years remaining on his UAE employment contract and their family circumstances changing, they wanted to secure their future UK “forever home”. We arranged a £550,000 residential mortgage on a £688,000 property – 80% LTV – at 4.9%, with £400,000 on interest-only to help keep the initial payments manageable.
Better still, the lender permitted short-term/Airbnb letting while they were overseas, subject to its conditions. The result? Potential rental income today, a future family home tomorrow, and-most importantly-the flexibility to decide when the time is right to return to the UK.
Watch a further case study here:
Coming Next…
But what happens if you can’t qualify for an expat residential mortgage today. Could you choose the potentially simpler, rental-based Buy to Let route instead – and then switch the property to a residential mortgage when you eventually return to the UK?
It sounds like an attractive solution, but there are some important mortgage, regulatory and occupancy considerations you need to understand before taking this route.
I’ll cover exactly how this works – and when it can and cannot be done – in the next article. Remember ~ Big moves start with small steps. I’m here when you’re ready.
Why Advice Matters
At MyMortgageDeal, we specialise in helping UK expats and overseas investors access mortgage solutions that many mainstream banks simply don’t offer.
Whether you’re a First Time Buyer, First Time Landlord, experienced investor or purchasing through a Limited Company, we’d be delighted to explore what’s possible.
As an expat you may be unsure what might be possible or what your next move should be and we are on hand to help explore the options available to you.
Market Updates
- New landlord register is just around the corner – get prepared and get ahead read it here.
- Wondering where to invest in the UK – A major UK BTL lender provides this solid report on where are some of the best performing areas in the UK. A proper good read. Read it here.
- Are you charging enough in Rent – might be time to revisit your rental strategy, heres some top tips on getting the most from the rent you can charge watch it here.
- Deals of the Week: 3 Yr Discount Expat Residential at 4.59% to 75% and for Expat BTL – 5 yr fixed at 5.75% there are still some exceptional deals out there for expats. Enquire now
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