Getting a mortgage as an expat living in the UK isn’t always easy as many lenders will view you as a high-risk borrower. There are also very few lenders that will offer mortgages to expats at all. However, there are providers who will, it’s all about finding the right solution for you.
Getting a mortgage as an expat in the UK can be difficult because it is harder for lenders to follow standard procedures that help them to guarantee a borrower’s financial stability.
If your primary income comes from overseas, due to fluctuating exchange rates, it’s hard for a lender to ascertain the sustainability and size of your income. If a lender sees a particular customer as higher risk they may decline the loan, or they may offer a higher interest loan to offset the risk. However, while this may mean you pay a little more than average, it doesn’t mean you have to pay extortionate rates.
If you’ve lived abroad for a longtime your credit rating may also cause an issue as it may not be traceable. This doesn’t necessarily mean you’re high risk but it makes it harder to prove that you are a reliable borrower.
This generally means lenders will err on the side of caution again and either refuse the loan or offer a loan with a high-interest rate.
Generally, lenders require a higher deposit for a buy to let mortgage so for expats (considering all of the above) a buy to let mortgage can be very expensive as you will need a large deposit.
This is not to say it’s impossible and we always recommend speaking to an adviser so that you can make sure you’re getting the best deal possible.
Where you live or have previously lived could also impact your ability to get a mortgage in the UK. Lenders tend to have more concern with countries where there are known problems with corruption or money laundering.
The best way to go about getting a mortgage as an expat is to speak to the experts. Finding the right solution for you is important so that you don’t end up paying over the odds.