How Can I Improve the Strength of My Buy to Let Expat Mortgage Application?
There are lots of ways you can improve your chances of finding competitive lending:
- Choose an Experienced Broker
Possibly the most crucial factor is to work with a broker who has experience in negotiating expat mortgages.
Finding lending within a niche can be extremely difficult on your own, with many lenders only offering products through experienced brokers.
Revolution can advise on the lenders who are best suited to approve your application, negotiate the fees and rates on your behalf, and guide you through the application process.
- Prepare Evidence of Your Income
Lenders find it difficult to verify your income overseas, so if you can provide evidence, this will streamline the process. For example:
- Have a copy of your contract of employment available.
- Prepare copies of your self-employed accounts or tax returns.
In some cases, lenders will require a confirmation from an internationally recognised accountant that your accounts are valid, and you can prepare this evidence in advance.
Consider the Maximum Age Cap on Your Mortgage
While many specialist lenders will offer a mortgage to applicants of any age, some do have caps. For example, you might only be approved for lending if the term ends before you reach age 70.
When considering your application, it is wise to consult a broker who will know the upper age limits of prospective lenders and advise on whether you can reduce the term you apply for, to fall within eligibility requirements.
Look Into Your Credit Rating
As an expat, you are unlikely to have a thorough UK credit rating. Many lenders will automatically reject an applicant on this basis alone.
One option is to take out a UK credit card and use it for minimal spending. This can help create a credit score and provide a traceable history.
If you have bad credit, this should also be addressed before applying, and consideration given to which mortgage lenders are in a position to consider your application.
Can I Apply for a BTL Mortgage as an Expat if I Have Adverse Credit?
Lending to an expat is always higher risk, although the affordability calculation depends more on the anticipated rental income for a BTL mortgage.
If you have a good credit score, you are more likely to be accepted, so in a bad credit scenario, it is often advisable to work with a bad credit lender who has more flexibility in considering your application.
Can UK Expats Get Interest-Only BTL Mortgages?
Most expat mortgages are on a repayment basis, as lending to somebody resident outside of the UK carries a higher risk.
Suppose you have a perfect credit score, a large deposit, and present a low-risk application. In that case, it may be possible to secure interest-only BTL lending as an expat, but this is a highly specialist product.
Is There a Minimum Income Threshold for Expat Buy to Let Mortgages?
Some mortgage lenders require a minimum independent income of £25,000 - so if you have a low income, or cannot demonstrate that income, the number of lenders you can apply to drops.
Likewise, some UK lenders will only consider income paid into a domestic bank account. However, a broker can recommend mortgage providers who consider international income when reviewing your application.
What Deposit is Required for a Buy to Let Mortgage as a UK Expat?
Deposit requirements will depend on the lender and your circumstances:
- Most lenders will ask for a 25% deposit if you own another property, provided you offer a second charge against that second property as additional security.
- If you own more equity in an initial property, this presents a lower LTV ratio, and the deposit requirement is likely to be lower.
- If you do not own a second property, you might be asked for a deposit of 35% or higher.
Does It Matter How Much Landlord Experience I Have as an Expat Applying for a BTL Mortgage?
It does, depending on the lender. If you have a track record as a landlord, a lender is more likely to approve your application.
However, as a first-time landlord, it is possible to find mortgage lending from a specialist buy-to-let lender.
Some niche providers use the rental income as the key driver behind their approval, and so by working with Revolution Brokers, you can still negotiate favourable deals.
Which Deposit Sources are Accepted for Expat Buy to Let Mortgages?
Deposit sources generally accepted for expat buy to let mortgages include:
- UK or international savings - dependent on being held in an approved country.
- UK stocks, shares or capital investments, and some overseas investments.
- UK or overseas property sales, again dependent on the country.
- Equity held in an existing property offered as security.
In some cases, you will find lenders who will accept deposits gifted from friends or family. However, you will need an experienced lender to negotiate acceptance of this source of deposit.
Advice for UK Expats Applying for Buy to Let Lending
Here are our top tips for a smooth BTL mortgage application:
- Use a solicitor who speaks good English, and is conversant in both UK and overseas legislation.
- Make sure any UK solicitors are registered with the Law Society and have the requisite experience.
- Use an independent lawyer, avoiding any professionals affiliated with the estate agent or any other concerned party.
- Have your proof of income professionally translated into English.
- Avoid online calculators - these provide a rough indication, but cannot help with eligibility criteria, and can be misleading.
If you would like to understand what sort of rates and terms are payable on an expat buy to let mortgage, or how much you could borrow, call Revolution Brokers on 0330 304 3040.
What Difference Will a Mortgage Broker Make to Finding an Expat Buy To Let Loan?
A big difference! An independent, whole-of-market broker can offer a vast range of products, depending on what they think is the best fit for your requirements.
Revolution Brokers also assist with:
- Processing documents, and providing advice about whether contracts conform to your mortgage offer, or where terms might be negotiable.
- Negotiating terms, rates and clauses.
- Submitting your application and helping with identifying the critical documentation required to support your BTL mortgage request.
Where Can I Find the Best Rates on Buy to Let Mortgages for Expats?
To find the most competitive expat investment mortgages, contact Revolution Brokers today as an expert in international lending.
Our team reviews your circumstances and requirements and delivers independent recommendations to help you find the right lending.
