UK Expat Mortgages

UK Expat Mortgages

I’ve now organized two buy to let purchases through Capital Fortune and can totally recommend their services.
Anthony Yee, Sydney, Australia

Capital Fortune are specialists in assisting UK Expats based abroad secure mortgages on properties in the UK

Clients tell us it can be really difficult for UK expats to secure mortgages on properties in the UK. Many of the bigger banks do not have the ability to lend to anyone who either does not pay UK tax, is not paid in GBP Pound Sterling or is not fully registered and living at a UK address.

In addition, we often hear that many mortgage brokers either do not have access to expat mortgages or are not equipped to manage the extra administration in the process. They may find it harder to check your financial status, employment and credit history.

As a result, it is particularly important to receive specialist advice. 

Different lenders have different rules depending on:

• How long you have been out of the UK for

• The country you are based in

• The currency you are paid in 

• The size of your employer 

• The UK credit you have maintained whilst living outside of the country.

Unlike with straightforward UK based mortgages, it can be more difficult to find the best mortgage rates you’d be entitled to. This is where a specialist expat mortgage broker comes in. 

Capital Fortune have established and exclusive relationships with a number of lenders that have experience dealing with lending to expats.

These include several smaller building societies and specialist lenders who are not available on the open market.

There are two types of UK expat mortgages available:

Firstly, residential mortgages. These apply to customers who are based abroad who are either purchasing a bolthole which they will use when they are in the UK or a property which will be lived in by a family member who continues to live and/or work in Britain. 

If you are paid in a currency other than sterling, your ability to afford the repayments will be affected by the exchange rate between the pound and the currency you are paid in. This means that most expat lenders will lend you a mortgage on a smaller proportion of your salary than if you were earning in the UK. 

With different criteria for different lenders it is important to get the right UK expat mortgage advice.

We also help with buy to let mortgages. This applies to properties which are rented out either on a long or short term basis whilst you are outside of the UK. 

This can apply to the property which you used to live in before you emigrated, existing buy to lets owned or new investment properties being purchased. 

It has got significantly harder for expats to secure buy to let mortgages in the last 12 months due to the increase of global interest rates. 

Many mortgage lenders require high rental yields which are particularly hard to obtain unless significant deposits are used.

Capital Fortune have the ability to assist customers on a true affordability basis, enabling those on higher incomes to borrow significantly more than what many of the typical buy to let mortgage lenders would offer on a yield based only calculation.

If you are looking for UK Expat mortgage advice, contact us today!