Expat Mortgages

The amount you can borrow with an expat mortgage depends on your deposit size and income, with lenders typically offering loans between 3 to 5 times your annual income.

Various factors impact borrowing, including employment history, existing debts, credit history, dependents, and overall outgoings. For buy-to-let properties, expected rental income is considered, but a larger deposit is usually necessary.

Choosing the ideal mortgage for expats relies on individual circumstances, such as opting for fixed-rate, tracker, interest-only, or repayment mortgages.

Due to the complexity of expat situations you should discuss your situation with a mortgage advisor, and they can recommend the best type for your situation.

The duration to secure an expat mortgage varies based on individual circumstances. Generally this could be between 2 and 6 weeks.

If you plan to move abroad and intend to rent out your existing home, you’ll need to remortgage your existing residential property as a buy-to-let. This will be considered a expat buy to let mortgage.

Expat mortgages often come with heightened scrutiny from underwriters due to the perceived increased risk. Here are key aspects lenders will evaluate:

• Credit History: Extended periods abroad can complicate credit history checks for UK lenders, possibly necessitating an adverse credit mortgage or a period of credit improvement upon returning to the UK. Usage of a UK-based credit card may be advantageous.
• Income Verification: Lenders need assurance of your ability to repay the mortgage, looking at your income closely. Verifying overseas income can be challenging, but an expat mortgage broker can provide guidance.
• Employment Status: Stability of income through employment is crucial, with lenders requiring proof. While working for a globally known company is beneficial, it’s not mandatory. Pay slips and income evidence, potentially needing translation into English, are required. Some lenders might also prefer income history through a British bank account.
• Self-Employed Income: Mortgage application for self-employed individuals, especially expats, involves complex verification processes. Your income must be validated by a globally recognised accountant, meeting standard self-employed mortgage criteria.

Additionally, lenders may have unique assessments. Consulting with a mortgage advisor like Kerr & Watson, familiar with your preferred lender’s procedures, can streamline the application process.