UK Expat Mortgages

Please contact us for a no-obligation conversation with an adviser about the most suitable mortgage option for you.

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PLEASE NOTE – Rose Capital Partners are in the process of merging with Heron Financial, therefore it will be best for Heron to pick up your enquiry from here. Please do use the link here to book in with the team but if you have any concerns, please call us on 020 7935 7866 or contact info@rosecp.co.uk 

Definition of UK Expat

  • UK national working abroad
  • Non-resident in the UK for tax purposes
  • Different types of lender, different assessment to standard mortgage
  • Lender will consider jurisdiction and currency paid in and convert back into sterling
  • Then will apply a ‘haircut’, will remove between 15% to 20% of the income to account for currency variations
  • If self-employed, more complex, but suggest align with large international accountancy firm so accounts prepared or audited by reputable firm, otherwise difficult to verify income
  • If employed, lenders will want evidence company is legitimate and is not in ‘no-go’ Home Office jurisdiction

Can I get a mortgage as a UK Expat or mortgage for non UK citizen?

  • If you are a UK citizen working abroad, you will invariably be paid in a foreign currency (but granted, not always). More lenders are coming to terms with this. So often getting a UK Expat mortgage is not a problem, but you do need to talk to the right lender as most High Street lenders struggle in this area.
  • As a UK national living overseas as an expat you may wish to retain your existing UK property. Or you may wish purchase a property to rent out in your absence.
  • This provides an income and a base for the future when you return, so an Expat buy to let mortgage UK may be appropriate.

Your Borrowing = 4.5 to 5.5 x your income

How much can I borrow with a UK Expat mortgage?

  • The short answer is between 4.5 – 5.5 x your income, but how your income is assessed may differ from a UK Resident.
  • Lenders may view you as a riskier prospect as your income may be regarded as less stable than if you were UK resident. For example, the lender may be unable to obtain your full credit history if you have been out of the country for a while.
  • If your income is paid in an overseas currency, there are lenders with specific criteria who will consider an application. However, the lender will likely apply a “hair-cut” to offset currency fluctuations. You may also be required to undergo further identity and income checks than other borrowers.
  • Potentially you may require a higher deposit. A deposit of around 25% is not uncommon.
  • Another issue may be the country in which an expat is working. Lenders may be reluctant to consider an expat in countries where corruption is common, or money laundering is known to be prevalent.
  • Lenders can be more cautious in ‘high risk jurisdictions’, which are outlined by the UK Government here. It does not stop you getting a mortgage, but it can be harder work.
  • Also check your tax status with HMRC. If you purchase and rent out a Buy to Let property you may be classed as a “non-resident landlord” with an Expat Buy to Let mortgage UK.

Simple example

  • Say earn $100,000 income
  • Convert to sterling: $100,000/1.4 = £71,000
  • Less ‘haircut’ of 15% = £60,000
  • Apply multiple of 4.5 (£60,000 x 4.5) = £270,000

How much does a UK Expat mortgage cost and what are the Expat mortgage rates?

  • UK Expat mortgages may attract a higher interest rate.
  • Check with your expat mortgage broker on the current expat mortgage rates.

Essential to talk to an Expat mortgage broker

  • It is essential to talk to an Expat mortgage broker that has access to the whole market.
  • Your broker can also advise you on a mortgage for non UK citizen.
  • It makes sense to look over the fence to what else is available for expat residential mortgages UK and your mortgage advisor is your best and easiest way of doing that.
  • We have access to lenders, products, and underwriters that the general public simply do not.
  • If you feel you fall into this Expat category please do pick up with one of the team we are very happy to help.
  • It is a complex area but we do deal with it quite regularly and we know the people to talk to
  • Ultimately, we want to make sure this is a stress free experience for you

Speak To An Expert

Our key aims are to fully understand what you are looking to achieve, create a solution tailored to your needs, deliver results through an excellent service and build a relationship for life.

Your UK Expat mortgage structure

One of the first things to consider is your repayment vehicle.

Do you want to opt for?

  • a repayment loan?
  • an interest only loan?
  • part & part which is a combination of the two?

What is a Repayment mortgage?

  • You make monthly payments and at the end of the term the loan is repaid.
  • With a repayment mortgage the monthly payments are higher but with less risk.

What is an Interest Only mortgage?

  • You simply pay the interest on the mortgage loan and look to pay off the loan later with say, the sale of property, investments, or bonuses.
  • With an interest-only mortgage the monthly repayments are lower but is assessed as higher risk.

Your mortgage product

You will also need to consider which type of mortgage product is best for you as this determines your monthly payments.

  • Fixed Rate Mortgage. Your repayments are set for 2,5, 10 years.
  • Variable mortgage. This is sometimes cheaper, but the rate can go up or down depending on the market and is often penalty free if you want to remortgage.

Rather than asking how much it will cost, consider how much can you afford. Your Expat mortgage broker will then structure your mortgage appropriately, based on your risk profile.

What Expat mortgage rates can I get?

  • The actual Expat Mortgage Rates Residential you will be offered will be dependent on your personal circumstance and deposit level.
  • Therefore, think about how much you want to spend each month on your mortgage repayments.
  • We have access to a range of lenders in the market, and we have access to exclusive mortgage rates.

How much deposit do I need for a UK Expat mortgage?

  • The long answer is that it is dependent on your circumstances: purchase price, income, and property type.
  • The short answer is – about 25%.
  • Lenders consider you a low-risk buyer when you put down a 25% deposit or more.

We are here to help you with mortgage deals for UK Expat friendly mortgages and in helping you through the stages of getting a mortgage as a UK Expat.

As a top-rated London mortgage broker, we are here to guide you every step of the way.

  • Your dedicated mortgage broker will provide you with detailed, personalised advice on how much you can borrow and source exclusive mortgage deals.
  • In today’s mortgage market, each borrower is assessed on their individual affordability merits. Once we have talked through your personal circumstances, we will advise you on Expat mortgage rates suitable for you.
  • This means you get the right advice crucial to ensuring you get the right UK Expat mortgage for your circumstances.

For UK Expat friendly mortgages

Rose Capital Partners takes the time to understand your mortgage goals to secure the optimal mortgage deals for you.

  • Our mortgage advice is second to none.
  • We will advise you on Expat mortgage rates appropriate for you.
  • Our aim is to maximise your borrowing potential, minimise your monthly payments and work with you throughout the lifecycle of the loan to manage down the mortgage.
  • You are treated as a valued client, not a transaction, and dealt with by an experienced, empathetic person, not an algorithm.
  • We have access to competitive deals and with no affiliation to third parties.
  • We will always act in the best interests of you, our clients, to give you the best mortgage advice possible to achieve the right mortgage for your life’s goals.

Your property may be repossessed if you do not keep up repayments on your mortgage.