Client
A married British couple who emigrated to live in Australia a few years ago. The husband had secured a job as a GP and the wife as a local government officer, and the couple had since welcomed a child into the world. They owned a UK buy-to-let property with a fixed-rate deal coming to an end, and came to us for a buy-to-let product transfer for expats.
Background
With lenders’ standard variable rates having risen sharply, the couple needed to act quickly to secure a more attractive rate before their existing fixed term ended, rather than rolling onto a much higher variable rate by default. As British expats living in Australia, most mainstream lenders would not be able to lend to them, which narrowed the options for how they could refinance their UK buy-to-let.
Requirement
- Avoid rolling onto their lender’s standard variable rate
- Secure a new competitive rate before the fixed term ended
- Work with a lender able to deal with British expats living in Australia
- Compare a full remortgage against a product transfer with their existing lender
Challenges
Most standard lenders will not deal with clients who have emigrated to Australia, which meant a straightforward whole-of-market remortgage was unlikely to be the most practical route. With rates rising and the fixed term approaching its end, there was also limited time to act before the couple would default onto a much higher variable rate.
Solution
As a whole-of-market expat mortgage broker, we compared a full remortgage against a product transfer from their existing lender, based on a true cost comparison of both routes. This showed a product transfer, also known as a product switch, was the better option, so we arranged a new deal with their existing lender for the couple to roll onto once their fixed term ended – something we handle for our clients at zero cost, managing the whole process on their behalf.
Had a better deal become available elsewhere before the end of the fixed term, we could have switched to it without penalty, giving the couple peace of mind that they were getting the best deal available throughout the process.
Outcome
The couple secured a new competitive rate with their existing lender via a product transfer, avoiding the standard variable rate entirely, at zero cost and with the whole process managed on their behalf. To see what a similar remortgage or product transfer could look like for you, our expat mortgage calculator gives an instant estimate.
Summary
Many Brits choose to emigrate at some point in their life and often want to hold onto the property they worked hard to acquire in the UK. While most standard mortgage lenders cannot lend to expats, using a specialist expat mortgage advisor means sound advice and experience dealing with expat mortgages – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider:
- A product transfer with your existing lender can often beat a full remortgage on a true cost comparison.
- Some lenders will not deal with British expats living in Australia, so it pays to check early.
- A specialist broker can manage a product transfer for expat clients at zero cost.
- Acting before your fixed term ends can help you avoid a lender’s standard variable rate.
Frequently Asked Questions
Can expats living in Australia get a UK buy-to-let product transfer?
Yes, though most mainstream lenders won’t deal with clients who have emigrated to Australia.
A specialist expat broker can identify which lenders will still consider a product transfer for British expats living in Australia.
What is a product transfer, and how is it different to a remortgage?
A product transfer is a new deal with your existing lender, rather than moving to a new one.
It’s often quicker and cheaper than a full remortgage, though it’s worth comparing both on a true cost basis before deciding.
Does a buy-to-let product transfer for expats cost anything?
No, a specialist broker can typically arrange this at zero cost to the client.
This usually includes managing the whole process on your behalf, from comparing deals through to completion.
What happens if a better rate becomes available before my fixed term ends?
You can often switch to it without penalty.
Keeping an eye on the market before your existing deal ends means you’re not locked into a rate that’s no longer the most competitive.
If you have any questions relating to an expat buy to let mortgage, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors.
Expat Mortgages UK is a specialist broker directly authorised and regulated by the Financial Conduct Authority. We work exclusively with expats and foreign nationals buying UK property with overseas income. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: +44 1494 622 555 Email: info@expatmortgages-uk.com
Related Pages
- UK mortgages for expats in Australia – How lenders assess applications from British expats based in Australia.
- expat remortgages – Switching from a residential mortgage onto the right expat product.
- buy-to-let mortgages for expat landlords – Financing a UK rental property as an expat.
- UK mortgage on foreign income – How lenders assess overseas earnings for a UK mortgage.
- expat mortgage case studies – Real examples of expat and foreign national UK mortgage completions.