Expat Buy to Let Mortgages

Ex Pat Buy to Let Mortgages

If you are a UK national currently living in another country, you may wish to finance a property back in the UK. It may be that you’re looking to refinance property that you already own, or are looking to purchase a Buy to Let. Either way, renting out property in the UK is a popular investment decision for many British expats who are currently live or are working abroad.

Can I remortgage my UK property to a Buy to Let as an expat?

If you’re a British expat, you may wish to rent out a home that you have lived in previously. You may only plan on living or working abroad for a short amount of time so are reluctant to sell your family home. Alternatively, you may wish to live abroad long term but view renting out your property as an ideal investment opportunity. Either way, our experts here at The Mortgage Masters can guide you every step of the way.

Is getting an Expat Buy to Let Mortgage difficult?

The process of applying for a buy to let mortgage as an expat is more complex than if you were living in the Uk. This largely due to the fact that lenders may find it more difficult to verify your income, credit history and affordability status. You may be getting paid in a foreign currency, paying taxes in the country where you reside and have a limited credit profile in the UK. For this reason, not all lenders allow applications from expats.

Can I switch my residential mortgage into an expat Buy to let Mortgage?

The short answer to this is yes! Whist many choose to sell their home when they move abroad, keeping it and renting it out can be beneficial for a number of reasons. For example, you may want to generate extra income through rent, protect your UK credit profile by keeping financial ties with the UK or may simply want to keep your options open in case you wish to return to the UK in the future. These are all valid reasons for switching your mortgage to an expat Buy to Let and our specialist advisers can help you with this.

How much deposit do I need for an expat Buy to Let mortgage?

The majority of lenders want you to have a minimum deposit of 25%, although you may have options with only 20%. The larger the deposit, the better the rates so if you can stretch to 40% deposit, you should have access to the lower rates.

Are the mortgage rates higher on an expat Buy to Let?

When it comes to Buy to Let mortgages, rates are always higher than on a residential mortgage regardless of if you’re an expat. This is because, lenders assess affordability differently- they are more interested in ensuring that the rental income received will pay the mortgage and also cover any potential rental voids.

However, when it comes to expat BTL mortgages, lenders view them even higher risk and therefore generally exercise even more caution. For this reason, lenders usually charge higher rates and fees. The rates and fees that are available to you will come down to a number of factors (e.g. the size of your deposit, type of income, country you reside in) and the strength of your application as whole. Click here to find out more about BTL mortgages.

What Factors can affect the rates I have access to for an expat Buy to Let

Size of deposit

The higher the deposit, the lower the mortgage rates

Your income

Many lenders will require you have a minimum annual income of £25,000 although some will want as much as £50,000 per year. Some lenders also require you to work for a large multi-national firm or one with presence in the UK.

In relation to self-employed applicants, some lenders will only accept applicants who are Limited Company Directors rather than sole traders, others want you to have a company based in the UK. Therefore, approaching the right lender is the key to success.

Previous experience

If you have previous experience of being a landlord, you may have more mortgage options than if you have never owned a Buy to Let before. However, even if you are brand new to property investing, we have access to specialist lenders who are happy to take on first- time landlords.

The Country you are residing in Where you are living as an expat is important to some lenders as many will only accept applications from those living within the European Economic Area or specific countries within the Financial Action Task Force.

Ties to the UK and your credit profile

Any lenders will want to ensure that you still have a bank account and credit profile within the UK.

The property you are buying

Some lenders will not accept expat Buy to Let applications if you are looking to buy a new build flat or a flat near a commercial area.

Why should I use a mortgage broker?

The world of expat Buy to Lets is complex. Approaching the right lender is the key to success. Here at The Mortgage Masters, our mortgage experts are dedicated to securing you competitive rates to help you achieve the best possible return on your investment.