Every year, thousands of Brits pack their bags and head for pastures new. As @FullFact says, “1.3 million people born in the UK live in other EU countries, according to 2017 estimates from the United Nations.” Hundreds of thousands more live in Australia, the US, Canada and other non-EU countries.
Although many of these expats opt to sell up when they leave the country, a large proportion chooses to keep a foot on the UK property ladder when they move abroad. For these property owning expats, getting a mortgage isn’t always easy. Some banks won’t lend to Brits living outside the UK and those that do will often offer expats less attractive deals on their mortgages.
If you’re an expat looking to buy property in the UK, understanding what the country’s mortgage rules mean for you will help to ensure you’re able to secure the loan you need.
Getting a mortgage as an expat
If you’re a Brit living abroad, you’ll be pleased to hear that there aren’t any rules stopping you from getting a mortgage on a UK property. However, in reality, securing a loan when you live outside of the country can be a challenge.
Most banks will carry out enhanced security checks to ensure you are who you say you are. They may also need extra proof of earnings. In addition, some banks may have restrictions on lending to residents of certain countries.
Less choice means more expense
While some banks will impose tougher checks on mortgage applicants living abroad, others will simply refuse their applications. A large number of mortgage providers don’t offer loans to expats. This reduces the number of products available and means that expats are forced to apply to the same few lenders who will consider their applications. As a result of this lack of competition between mortgage providers, expats often end up paying a premium for their loans.
How to get a mortgage as an expat
If you’re looking to remortgage a property in the UK, or if you want to buy a new home to rent out while you’re living abroad, the best way to find a good mortgage deal is to talk to an experienced advisor.
An expert mortgage advisor will be able to talk you through all of the options that are available to you and find the deals that are right for your requirements. They’ll also be able to identify the lenders who will consider your application, so that you don’t waste time and energy applying to banks that don’t lend to those living abroad.
Although securing a mortgage as an expat isn’t always easy, keeping a foot on the UK property ladder can pay dividends in the long run. Find out more about the options available to you, or start applying for a loan of your own, by getting in touch with a member of our team today.
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Written by: Cambridge Web Marketing