Are There UK Mortgages for Expats Living Overseas?
There are, and remortgaging from abroad is more straightforward than arranging a new mortgage as your provider will already have your credit history, and the existing mortgage will have built up a credit score for new lenders to refer back to.
If you do not have a credit history or have adverse credit issues, get in touch, and we'll advise on the best specialist lenders to apply to.
Can I Get an Expat Remortgage for a Property Outside of the UK?
Generally, it's a little more complicated to remortgage from overseas. It is, therefore, crucial to understand the tax implications and legalities associated with cross-border property ownership:
- You need to understand your tax residency status, and what taxes are payable in your host country and country of origin.
- Any documents in a foreign language should be professionally translated, and you need to ensure that solicitors and advisors are conversant in legislation in both states.
- Exchange rates can make a significant difference to affordability, so you need to understand how the currencies are likely to change - your lender must inform you if the rate changes by over 20% in either direction.
Some lenders will offer an expat remortgage in another currency, which is well worth considering if you are concerned about future fluctuations impacting your income, or your regular repayments.
What are the Eligibility Criteria for an Expat Remortgage?
All lenders have their own criteria, but generally, for an expat remortgage, a lot will depend on the LTV restrictions of the UK lender, and their income policies.
This can change significantly, with lenders offering maximum Loan to Value ratios of between 60% and 90% depending on what countries are involved. You might also find that some lenders will consider 33% of your expendable income as a primary figure to use in calculating how much they can lend to you.
Most expat remortgage rejections happen because of issues in demonstrating income. Therefore, it is essential to work with an experienced broker who will ensure you only apply to lenders who are likely to be able to accept your application.
Are There Expat Remortgages Available for Bad Credit Applicants?
Bad credit will always make a complex remortgage application more difficult, but in some cases, you might not have a credit score at all.
That means that, even if you have never taken out lending in the UK, the absence of a credit record can be as detrimental as having experienced severe credit issues in the past.
It is vital to try and build up a traceable credit score or take steps to improve your rating - contact the Revolution Brokers team for more advice about how to do so.
Does My Working Situation Impact My Eligibility for an Expat Remortgage?
It can, yes, because lender criteria for expat remortgages will often require:
- Your annual income to be at least £25,000.
- You to have an employment role in an 'internationally recognised' company.
- Records of payments in English - professional translations are often accepted.
- Income paid into a UK bank account, with overseas income not considered.
Not all lenders enforce all of these criteria, but it's worth being aware of why income is so important when it comes to remortgaging as an expat.
Self-Employed Expats - You can get an expat remortgage if you are self-employed, but usually this depends on having a reference from an accountant with internationally recognised qualifications. Most lenders will require three years of accounts.
Typically, lenders will ask for a minimum deposit of 25% for employed or self-employed applicants, although this can vary depending on the circumstances.
If you have an existing UK property, you can leverage the equity, but without any form of security, a lender might ask for a deposit of 35% and above.
Expat Remortgages for Buy To Let Properties
Many expats retain a UK property to let out, and the criteria for remortgaging an expat investment property are a little different.
The first stage is to demonstrate your employment, usually through a contract. If you are self-employed, most lenders will require the same three years worth of accounts, verified by an internationally recognised accountant.
Most expat remortgage lenders will look for:
- A good, traceable UK credit history.
- Maximum age at the end of the term of 70.
- Repayment mortgages only, rather than interest-only products.
Landlord experience also comes into play, with the longer your track record, the lower risk the application and the more likely you are to have an application accepted at competitive rates.
Is There a Deposit Required for an Expat Remortgage?
Usually, if you are remortgaging, then the equity acts as the deposit, and you won't be asked to put down a further instalment. However, if you can reduce the LTV, then you are likely to be offered better rates.
If you do decide to deposit a further instalment, the following sources are considered acceptable:
- UK savings, or savings from an overseas bank.
- Stocks, shares or capital investment assets - held in the UK or abroad.
- Property sale proceeds.
- Equity held in an existing property - ideally in the UK.
- Inheritance capital.
- Gifted deposits from family or friends.
Why Do I Need a UK Bank Account for an Expat Remortgage?
Many lenders prefer expat remortgage applicants to have a UK bank account.
Regular payments and transactions can also help to build up a credit profile.
If you are looking to remortgage a property at home or overseas, finding a lender as an expat can be tricky and time-consuming.
For independent support with identifying the right lender, and securing the expat remortgage lending you need, contact Revolution Brokers on 0330 304 3040 or email us at [email protected].
