Can I Get a UK Mortgage as an Expat?
If you are a UK expat living abroad, you can obtain a buy-to-let mortgage, although the application will be somewhat different from residential applicants.
Lenders need to work harder to establish your affordability if you live outside of the UK. There are also higher risks associated with their lending, and you may have less readily available credit information to provide them with.
Mainstream banks don't tend to offer expat buy to let mortgages UK-based, so it's almost always necessary to use a niche lender specialising in this form of property financing.
Revolution Brokers work with expats looking for UK mortgages for any number of purposes. Our specialist lenders are experienced in this type of lending and can extend competitive offers.
Many of the best expat mortgages are only available through broker-exclusive deals and require extensive background checks to mitigate the lender's risk.
Give us a call if you're interested in UK buy to let mortgages for expats, and we'll ensure you get the mortgage borrowing you need at a great rate - without the stress!
How to Find UK Buy to Let Mortgages for Expats?
Some expats retain their UK property or expand their property portfolio and conduct a rental business as a landlord from their base overseas.
It isn't impossible to start a new rental business from abroad or manage an existing property across borders.
However, if you decide to move and have an existing buy to let properties, you will need to remortgage through a buy to let mortgage UK expat specific. That is because a current lender is unlikely to offer the same terms once you're not resident in Britain.
Here are a few tips that will help you secure a buy-to-let mortgage as an overseas landlord:
Apply Through an Expert Broker in Expat Mortgages UK
A broker has access to the full spectrum of the UK market and can walk you through all of the stages of your mortgage application, whether you are an experienced investor or a first-time buyer.
Using a UK broker is even more essential if you are based abroad, as this makes the search process quicker and more straightforward with a local broker on the ground to do the legwork for you.
You will also find this a convenient way to save time by avoiding applying to unsuitable lenders. A broker will help you secure competitive interest rates by comparing all of the rates on the market.
Get Advice on Evidencing Your Income for Expat Buy to Let Mortgages UK
One of the most common reasons lenders find it difficult to lend to expats is that they need to have evidence of your income to complete an affordability assessment.
If you are self-employed, whether in the UK or overseas, you will need to have copies of your accounts available. If you run an overseas business, an accountant with an internationally accepted accreditation can help with this.
The trick is to make sure your application contains all the information the lender needs to approve an application for an expat buy to let mortgage UK applicant.
The fewer questions they have, the more likely the underwriter is to approve your expat mortgage.
Give us a call if you need any tips and advice structuring your application to ensure you have access to the best expat buy to let mortgages UK.
Check the General Eligibility Criteria
As well as criteria specific to expat buy to let mortgages UK, your lender will still need to run through other checks.
That means your circumstances will dictate which mortgage provider is right for you. For example, some lenders will struggle to accept an application that ends when the applicant is over the age of 70.
You can avoid this issue by considering your age when the loan term will end and adjusting your mortgage application to finish before this date.
Alternatively, Revolution can advise on a range of potential mortgage lenders and products specifically designed for people approaching or above retirement age, offering expat mortgages.
There are also specialist lenders who exclusively provide later-life borrowing and may be more suitable than a general mortgage provider with a few expat mortgages UK products.
If this applies, give Revolution Brokers a call, and we will advise on the most suitable mortgage lenders for you.
How Can I Improve My Credit Report to Qualify for UK Buy to Let Mortgages for Expats?
Your credit file is an essential factor since a lender will need to establish whether you are creditworthy.
All UK lenders need to assess the affordability of a mortgage. Still, they'll also want assurances that applicants for expat buy to let mortgages haven't been in severe credit problems before.
A history of repossessions or bankruptcy, for example, make it significantly harder to find a mortgage since the lender will need to consider the risk that a similar scenario will arise.
It's also very difficult for a lender to pursue debts or begin the legal repossession process if the property is owned through a buy to let mortgage UK expat living overseas. Therefore, the underwriter will want more credit information to verify the application is acceptable.
Demonstrating your credit history can be tricky for expats since you are unlikely to have had any UK finance history for some time.
For example, if you have a UK credit card, this can help prospective lenders assess your good standing with credit providers.
If you haven't lived in the UK for a few years, you can start to build up a track record of healthy credit by taking out a credit card with a small balance and ensuring you pay back the total in good time.
While it does cost a little more to pay for items with a credit card in an alternative currency, having a credit report in the UK could significantly impact the interest rates you can achieve on expat buy to let mortgages UK.
Can I Get Expat Buy to Let Mortgages With Adverse Credit?
While fewer lenders will consider an expat buy-to-let mortgage application from somebody with an adverse credit file, there are still lenders who will be happy to lend.
This lending is highly specialist, so it's crucial to work with a professional broker with plenty of experience negotiating UK buy to let mortgages for expats.
The likelihood of approval all depends on the property's value, your security and the amount of deposit you can offer.
There are also several strategies to help lower the risk and make a lender more likely to consider your application, for example:
- Offering a higher deposit to reduce the Loan to Value ratio.
- Providing additional security in addition to the property - ideally a UK asset.
- Contextual information demonstrating the reason for your credit issues was a one-off.
Remember that credit issues remain in your file for six years, so even some late payments or a default five years ago will still crop up in the application for a buy to let mortgage UK expat.
It's always better to be proactive in addressing the issue and structuring your application to acknowledge that the lender might be reluctant to lend because of credit problems in the past.
Often, if you can show that these are unlikely to recur - for example, you had some credit issues due to redundancy and are now in stable employment - the lender may take a much more flexible view.
If you are looking to invest in a UK property as an expat and have a bad credit rating, give Revolution Brokers a call on 0330 304 3040, and we will help find the best way forward.
