Client
A British couple who moved from Surrey to Boston nine years ago. Their two children have since settled into American life, progressing through US schools and now universities. Before relocating, the couple owned a three-bed family home in Surrey, which they kept and rented out after moving abroad.
Background
When they first left the UK, they arranged “consent to let” with their original lender so the property could be rented out while they adjusted to life in the United States. This arrangement worked well for several years, but the consent period had now expired.
With no plans to return to the UK in the near future, the couple wanted to keep the property as a long-term rental investment. They needed to switch away from their residential mortgage and onto a proper Buy-to-Let product that would allow them to continue letting the home legally and on the right terms. As British expats earning in USD, they required a lender offering a UK mortgage for expats in the US and one familiar with providing mortgages for British expats more broadly.
Requirement
- Replace their residential mortgage (with expired consent to let)
- Move onto an expat Buy-to-Let mortgage suitable for expat landlords
- Use rental income to cover mortgage costs
- Work with a lender willing to accept their US-based income and non-UK residency).
Challenges
A number of mainstream lenders would not consider the case due to the couple living abroad and earning in US dollars. In addition, Buy-to-Let affordability rules meant the rental income needed to meet the lender’s stress-testing requirements. Only a limited pool of lenders is set up to work with expats in the US, so finding the right match was essential.
Solution
We carried out a full review of their circumstances, including their US income, UK rental history and the property’s current value. From there, we approached a specialist expat lender who regularly works with mortgages for British expats and is comfortable assessing USD income.
We put forward a Buy-to-Let remortgage at around 70% loan-to-value, structured on an interest-only basis to maintain positive rental cashflow. All paperwork – including proof of income, tenancy details and ID – was packaged and submitted in a format suited to expat underwriting.
Outcome
The expat remortgage completed without any complications. The couple are now on a straightforward Buy-to-Let deal that actually matches how they use the property, and they can continue renting it out without worrying about their old consent-to-let arrangement expiring. The rent easily covers the payments, so the property now runs itself without any issues.
Summary
This case shows that getting a UK mortgage for US Citizens doesn’t need to be difficult. Even with USD income and years of living abroad, British expats can still secure the right finance as long as the lender is comfortable with their situation and the application is put together properly.
Key Point
For anyone looking at mortgages for British expats, it really comes down to using lenders who understand how expat cases work. With the right match, moving from an old residential mortgage to a proper Buy-to-Let setup is a simple and sensible fix.
If you have any questions relating to a Expat Buy to Let Mortgage, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors.
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