Buy-to-Let mortgages for British expats
Being British, living and working abroad, you may still wish to purchase a property in the UK, which may be an investment or for your own personal use when you return.
If you’re living abroad and looking to buy a property in the UK, this will likely fall into the criteria of an expat Buy-to-Let Mortgage.
CAN I GET AN EXPAT BUY-TO-LET MORTGAGE IN THE UK?
Yes, it’s possible to obtain a Buy-to-Let mortgage as an expat. However, this doesn’t mean it’s always straightforward. The number of lenders in this sector is relatively small, each coming with its own set of criteria. This means that although one may not be able to assist, others may have a different view.
Where you live will also have an impact. Some lenders will be much more restrictive in the countries they will consider. Some won’t even consider entertaining countries such as Australia, New Zealand, and the USA.
How your income is generated could also be a factor – if you are employed or self-employed, if you are paid in sterling or an alternative currency, and your longer-term intentions with the property you are looking to purchase i.e. if it is to be your own residence when or if you return to the UK.
WHAT IS THE CRITERIA FOR EXPAT BUY-TO-LET MORTGAGES?
Criteria for any expat Buy-to-Let mortgage varies from one lender to another. This means there isn’t always a straightforward list we can give that highlights the criteria you need to meet.
However, we can cover some common requirements that you can expect most lenders require you to meet. The following can all have an impact, and the view on each varies from lender to lender:
- What country do you reside in?
- What currency are you paid in and are you a UK taxpayer? This can make it more difficult for a lender to verify your income.
- What is your longer-term plan for the property? i.e. is it intended to be your own residence when you return to the UK?
- How much deposit do you have? You’ll typically need a 25% deposit for a Buy-to-Let.
Keep in mind that certain lenders will not consider first-time buyers. However, some will place no restrictions here at all.
Although we are seeing an increase in the number of lenders offering expat Buy-to-Let mortgages, the choices remain relatively slim.
It’s strongly advised that you speak to a mortgage advisor familiar with this sector. If you have any questions regarding your eligibility, reach out today.
EXPAT BUY-TO-LET MORTGAGE RATES
One important aspect for any borrower to consider is what rate of interest they are going to be charged. Finding the right expat Buy-to-Let mortgage rates can sometimes feel like an up-hill struggle. This is because the choices arguably come with slim pickings due to the limited amount of lenders.
The rates offered by lenders for expat Buy-to-Let loans are typically priced differently to their standard Buy-to-Let counterparts. This is because the additional perceived risk is usually offset by the rates being priced slightly higher. Higher perceived risk can also be reflected through higher arrangement fees.
One constant that tends to run through the industry, regardless of the type of mortgage being applied for, is the size of your deposit or the amount of equity you may have. Invariably, the bigger your deposit or amount of equity, the lower the interest rate available. This is due to the reduced risk as you are borrowing less.
Your choice of rates may also be dictated by which lenders offer expat Buy-to-Let mortgages that meet your criteria. Again, this can vary and you may find that if you are restricted in the availability of lenders, in turn, this will have the same effect on the rate.
Even with restricted choices, it does not necessarily mean you’re in a bad position. By carrying out your research wisely, or perhaps using a mortgage advisor who is familiar with this sector, you should be able to locate and arrange your mortgage on the scheme that is most appropriate to your needs.
MORTGAGE LENDERS FOR EXPAT BUY-TO-LET MORTGAGES
We’re frequently asked, who are the best lenders for expat Buy-to-Let mortgages? Although the number of lenders who offer this type of mortgage is very limited, each will have its own set of criteria. They will also have their own portfolio of products, making these questions virtually impossible to answer without knowing the full details of the applicant’s situation.
The limited number of lenders can make it much more difficult to be accepted. This is because the criteria you’re expected to meet is usually much more stringent.
Simple things such as which country you reside in, or what currency you are paid in, can have an influence over your possible choice. Aspects such as your longer-term plans with the property also have an influence. i.e. do you intend to use it for your own personal use when you return to the UK?
Ultimately, the right lender is the one that you meet the necessary criteria for at the time, and that offers you the most appropriate solution to your borrowing needs. Finding the right lender can be a big challenge. However, at IMC Mortgage Brokers we have expert advisors who understand this sector of the market.
BUY-TO-LET MORTGAGE ADVICE FOR EXPATS
Many websites offer huge amounts of detail about standard Buy-to-Let mortgages, including us. But, due to the extra complexity of the expat sector, it’s difficult to give good detail when it comes to this area of lending.
Speaking to a mortgage advisor who has the right knowledge in this area can pay dividends in your search. This ultimately makes the whole process, from start to finish, a more pleasant experience.
At IMC Mortgage Brokers, one of our fully qualified advisors will be happy to discuss all that you need to know. Reach out today and discuss your needs with one of our expert advisors!
