Releasing cash from a UK property

Releasing cash from a UK property

Quite a number of expats can feel a little stuck especially if they are living off their pension income and or investments, and have UK property where a large part of their capital exists ! 

Many expat lenders have minimum income requirement,  for example one bank insists that Expats demonstrate at least £25K (sterling equivalent) in personal income from employment and if it is self employment usually the bar is set higher, one lender requires £100K income if self employed as an Expat. 

However there are a small handful of bespoke lenders that have ‘no minimum income’ requirement. So in essence the expat maybe only able to demonstrate state pension income and rental income totalling £11,798, far below the usual £25K required. Yet these lenders will consider capital release and remortgage deals for the expat in the knowledge that the property is self funding from the rent it generates. 

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
INFO@MYMORTGAGEDEAL.CO.UK

UK properties for Expats

UK properties for Expats

The simply answer to this is NO, there is no maximum, there are some lenders that are called ‘Portfolio’ Specialist Lenders, so they can take multiple properties that are mortgaged and provide an all in one solution. Usually they will have a max lend possible like £2M-£3M 

However other lenders will also permit this so if your portfolio is larger than £2M-£3M then using multiple Portfolio lenders is the way to go. 

Obviously the more you borrow the more risk the bank takes so by having multiple lenders you spread the risk and can usually then get a solution to fit UK properties for Expats.

UK properties for Expats

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
INFO@MYMORTGAGEDEAL.CO.UK

Mortgages in Spain and the UK

Mortgages in Spain and the UK

Absolutely you can, it is easier to obtain finance in the UK, especially if you want to purchase or remortgage with the intention to let the UK property out, thereby the UK bank will consider the UK mortgage as being self funded by the rent that it generates. 

How do you work out affordability for a UK mortgage even if you have a Spanish mortgage too? Well as long as your personal income supports the Spanish mortgage adequately and you have enough for deposit and rainy day savings etc. then the UK bank bases its lending decision on the rent the property generates. 

For example. Suppose you own a UK property worth £300,000 and it generates rent of £895 pcm. 

A UK bank calculates that the amount able to be borrowed would be approx. £190,000   this is based on a stress rate of 125% at 4.5%.

Mortgage payments on £190,000 on interest only would be £568 pcm leaving a £327 pcm gross profit.

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
INFO@MYMORTGAGEDEAL.CO.UK