Secure a UK Mortgage as a Hong Kong Expat
For UK expats living in Hong Kong, investing in property back home can be both an exciting and strategic decision.
The UK property market remains a popular choice for its stability, long-term growth potential, and variety of investment opportunities.
However, the UK mortgage market as an expat in Hong Kong can present challenges, such as limited lender options, currency exchange considerations, and difficulties around verifying foreign income.
At Kerr & Watson, we help UK expats secure bespoke mortgage solutions tailored to their circumstances.
Whether you’re looking to purchase a family home in the UK, invest in a buy-to-let property in London, or refinance an existing property in the British Countryside, we’re here to guide you.
Can UK Expats in Hong Kong Get a Mortgage in the UK?
Yes, in the right circumstances, expats in Hong Kong can secure a UK mortgage. However, traditional high-street banks often have stringent criteria and may not cater to non-residents. Some lenders may also restrict applicants based on their country of residence.
Factors like a lack of UK credit history or income in a foreign currency can make it difficult to access these conventional options.
The good news is that there are some lenders and private banks that can offer solutions for expats, including those with more complex income structures or significant assets, if criteria is met.
These lenders have experience with the intricacies of expat finances and provide mortgage products that meet a variety of needs.
Find out Your Options
Key Challenges for Hong Kong-Based Expats Seeking a UK Mortgage
Limited UK Credit History
Many expats face difficulty due to a lack of a UK credit footprint, which traditional lenders often prioritise.
Some lenders, however, can take a more holistic approach, focusing on your financial health, assets, and income sources, both in the UK and Hong Kong, rather than solely relying on credit scores.
Foreign Income and Currency Exchange Risks
Income earned in Hong Kong dollars introduces complexiyu related to currency exchange fluctuations.
Most lenders apply what they call a “haircut” to foreign earnings, assessing only a percentage to account for potential risks (for example, using 80% of the income).
We work with lenders who have an understanding of overseas income.
Complex Income Structures
For expats with diverse income streams, such as employment, rental income, or business dividends, it can be difficult for all traditional lenders to evaluate financial stability.
We look to present your income profile effectively to lenders who understand complex financial arrangements.
Time Zone and Communication Barriers
Living in Hong Kong means dealing with a time difference from the UK.
We prioritise clear and efficient communication, ensuring you stay updated and involved throughout the mortgage application process.
Types of UK Mortgages Available for Expats in Hong Kong
Residential Mortgages
These mortgages are for expats planning to return to the UK or secure a family home for future use.
Lenders consider your income and outgoings, including income earned in Hong Kong, and outgoings in both the UK and Hong Kong, to assess affordability.
Buy-to-Let Mortgages
If you’re interested in investing in the UK rental market, buy-to-let mortgages offer an opportunity to do so without the need to pay for the property outright from your own resources. Key cities like London, Manchester, and Birmingham often yield strong rental returns. We’ll help you look for a lender based on their lending criteria and your situation, guiding you on rental coverage ratios and stress tests.
Remortgaging
If you already own property in the UK, remortgaging may allow you to access better rates, consolidate debt, or release equity for further investment, whether in the UK or Hong Kong.
Bridging Loans and Development Finance
Bridging loans for expats looking to develop or renovate UK properties or fund a purchase quickly, bridging loans and development finance provide short-term solutions to act quickly on investment opportunities. These are not for everyone so professional advice should always be taken.
Commercial Mortgages
British expats in the Hong Kong may also be able to access expat commercial mortgages if they are purchasing or refinancing property used for business purposes, such as offices, retail units, mixed-use buildings or investment properties. Commercial lending is assessed differently to residential borrowing, with lenders placing greater emphasis on the property itself, the tenant occupying it and the strength of the rental or business income.
Why Invest in UK Property from Hong Kong?
The UK property market is known for its resilience and potential for long-term growth, making it an attractive option for expats in Hong Kong.
Whether you’re looking for a buy-to-let investment in bustling cities like London or Manchester, or a family home in a more rural setting like Surrey or Dorset, UK real estate offers a variety of opportunities.
Additionally, some lenders cater specifically to high-value mortgages, making it possible to purchase prime UK real estate with loans ranging from £500,000 to over £10 million.
Why Choose Kerr & Watson for Your UK Expat Mortgage?
At Kerr & Watson, we understand the challenges faced by UK expats in Hong Kong and other countries.
Our aim is to simplify the process and offer bespoke advice tailored to your circumstances. We offer the following:
- Specialist knowledge: We work with lenders experienced in expat mortgages, giving you access to products specifically designed for those living abroad.
- Tailored Advice: Every client is unique. We take the time to understand your financial profile and property goals, providing advice that aligns with your needs.
- Flexible Communication: Living in a different time zone shouldn’t be a barrier. We accommodate your schedule and keep you informed throughout the process, offering meetings by telephone and video, such as Zoom or Teams.
Contact Kerr & Watson Today
Securing a UK mortgage as an expat in Hong Kong is achievable with the right guidance and expertise, as long as you meet the lender criteria.
We pride ourselves on offering bespoke mortgage solutions and expert advice to expats worldwide.
Whether you’re purchasing your first UK property, refinancing a previous home, or exploring buy-to-let opportunities, we aim to make the process seamless and stress-free.
Contact us today for a free consultation.
