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Expat Mortgage for Residential use or Buy to Let

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
*A buy to let mortgage will be secured against your property. Some types of buy to let mortgages are not regulated by the Financial Conduct Authority.

To explain what an expat mortgage is, we should first explain what it means to be an expat.

We understand circumstances change so if you are moving overseas or are already living abroad but you want to keep your foot on the UK property ladder, then you need a specialist type of mortgage that will allow you to own a property in the UK, while you are living abroad.

There are many different reasons why you would require an Expat mortgage.
For some, you may want to have rental earnings as a source of income, you may be maintaining a residential property for your family to reside in, or when you are finished working abroad, you may want a home to come back to.

Expat - Resolute Mortgages - Claydon, Ipswich

Whatever stage you are at, our advisors will tailor a mortgage recommendation to you based on your circumstances.

This type of lending is more specialist therefore, not all the High street banks and building societies have the criteria for an expat mortgage but there are plenty of bespoke lenders out there, which is why it is important to use a mortgage advisor for more complex mortgages, as we have access to these specific lenders.

What to consider

Depending on your personal circumstances, purchasing a property in the UK with cash is a smoother transaction, compared to arranging an expat mortgage. There are some things to consider, that may impact your chances of getting a mortgage.

Firstly, UK credit history. If you are currently residing outside the UK, you may have a lack of UK credit history, making it very difficult for the lender to identify your relationship history with borrowing or any former credit discrepancies.

Secondly, Foreign Currency Income. The lenders will assess your affordability based on your income and expenditure. When it comes to foreign currency, there are a few hurdles to jump through, for the lender to feel confident in agreeing to the mortgage. This is due to exchange rate fluctuations and the currency in which you receive your income.

Bearing the above in mind, most lenders will view your application as a higher risk. This is why by working with Resolute, we do our best to do the hard work for you! We understand this is not a straightforward transaction but, with our knowledge and experience in lending criteria, we have an understanding of what the lenders will expect to see.

Expat Mortgage for Residential use

Whether you want a property to live in when you move back home or your family is remaining in the UK, and you want to keep a home for them to reside in, then a residential expat mortgage is for you.

The main features of the mortgage are the same as a traditional mortgage. You can still make your monthly mortgage payments through repayment or interest only and you are entitled to a range of fixed or variable mortgage products.

Affordability will still be assessed on your income and expenditure, and depending on the type of currency you receive your income in, will determine your mortgage lender options.

Expat Mortgage for Buy to Let

If you are looking for an investment property, then an expat buy to let mortgage is the solution for you. Although you are living abroad, you may want to invest in property in the UK for the rental income or if you already own a property in the UK, you may want to change the status of your property from residential to buy-to-let.

The criteria around expat buy-to-let mortgages are viewed differently from expat residential mortgages. Whether you already have a few properties in your portfolio or you’re a first-time landlord, then there are potential lender options available to you.

There will be tax aspects you need to consider and full advice on this area can be given by a professional tax advice specialist. Also be mindful that when you come to sell the property, you may also be liable for capital gains tax, should any gains be made on the property.

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