UK Mortgage rates for Expats

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.