Buy to Let Mortgages for Expats

Buy to let Mortgages for Expats

Our Expat Mortgage Service: 

Special features of what we offer include:

• Whole of market service - We work with leading UK lenders including private banks

• Great rates! - Access to leading market mortgage rates

• Exclusive mortgage deals - Access to exclusive loan deals not available on the high street

• Fast turnaround - Speak to us today if you need to move quickly. We can access bridging loans and short-term finance

• Raising finance? - Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions

Getting an expat buy to let mortgage for your property can often be a problematic process normally, and it’s no easier if you are a UK expat. It’s a good investment – having a rental property in the UK will not only provide you with income, but will mean you have a base in the UK you can return to if you ever choose to move back home. However, securing one can be tricky. 

The number of BTL expat mortgages which are available are limited – there are limited options from limited lenders, so it’s important to talk to a broker to make sure they can guide you through the process, plus you can benefit from their expertise. 

5 things to remember 

When dealing with expat BTL finance, there are lots of important things to remember which are not necessarily part of the experience of finding BTL funding if you were based in the UK. These include:

• Exchange rate - With a UK-based buy to let mortgage, the exchange rate will likely not be an issue. If you are an expat, you’re likely being paid in a foreign currency, so the exchange rate is very important to factor in.

• Regulations - The regulations introduced in 2014 created more stringent guidelines, adding a bit more red tape to an already bureaucratic process. The new regulations apply to income and expenditure, so make sure you have a good record of these.

• Deposit required - You’ll need a minimum of 25% of the value of your property as a deposit. The projected income you generate from your rental property will directly affect how much you can borrow.

• Approved country - Some lenders only permit lending to reside in a country on their ‘approved’ list. This also applies to currency – some lenders will only lend to people who earn in specific currencies. An example of this is that some lenders will only consider giving buy to let loans to expats in European countries, whereas others will consider applications from all over the world.

• Track record - Your experience is also a factor here. If you are a first-time buy to let borrower, they might be less likely to seriously consider your application. But if you have more experience in the rental market as a landlord, this will stand you in good stead. Some lenders will only lend if you have an existing buy to let.

Difficulties expats face when looking for a buy to let mortgage 

As an expat, when looking to purchase a buy to let property in the UK, there are a number of considerations that should be taken into account. 

The higher pay check associated with working as an expat doesn’t always necessarily translate to an easier go of securing funding.

From 2017, lenders have required the monthly rental income of the property to be at least 145% (170% for Houses in Multiple Occupation properties) of what the monthly mortgage payments would be. 

In addition to a rental coverage ratio of at least 145%, applicant's will have to illustrate that they can afford mortgage payments in the event that the interest rate increases to 5.5% This approach by traditional lenders may make it more difficult for those looking for a buy to let mortgage.  

Also, most high street lenders will want to look at your credit history. If you are outside the UK often this causes challenges.

The good news is that there are a number of lenders who take a flexible view on lending and will look at your case on individual merits and personal circumstances rather than a point scoring system.

An experienced mortgage broker could help you find the best deal for your circumstances from across the UK market. 

What you need to know

When applying for a BTL mortgage as an expat, you’ll need to give the following information…

·        Your current country of residence

·        The currency your wage is paid in

·        The exit strategy you have planned

·        Any debt you might have

·        The amount you are able to put up for a deposit

·        Any UK history (credit file/UK bank account)

·        Any tax you pay – and where (paying UK tax is an important factor) 

Factors that will give you a better chance of getting funding is:

·        Having a history of UK based credit

·        Having a UK bank account

·        Having a hefty deposit

But, having said that, the main thing that will give you the best chance of securing the funding you want is to approach an experienced broker who can find the right lender for you.

Our buy to let mortgage service for expats

Organising a buy to let mortgage from the other side of the world can be a major headache, which is why we provide an expert buy to let mortgage advisory team to assist you through the UK mortgage process from start to finish.

One major benefit of having a UK mortgage broker is that they can usually organise a purchase on your behalf quickly and simply without you even needing to visit the UK yourself. We offer a whole of market service, working with UK banks and building societies who lend to expats, which means we can provide you with exclusive, leading expat mortgage rates on a fixed and variable rate basis.

If you believe that you would benefit from the help of our service, call us today or fill in our form to request a call back from our buy to let the expat advisory team, who can provide you with a free initial consultation.