Client
A UK national who had relocated to Australia four years ago. He was an existing homeowner and had secured full-time employment since moving overseas, and came to us for a UK mortgage for expats living in Australia.
Background
The client wanted to remortgage his former residential address in the UK onto an expat buy-to-let mortgage. The existing UK residential mortgage had been running on consent to let, but the lender was no longer willing to continue this now the client was permanently based overseas, with his income now paid in Australian dollars. His preference was to secure a five-year fixed rate.
Requirement
- Remortgage a former UK residential property onto an expat buy-to-let mortgage
- Move away from an expired consent-to-let arrangement
- Secure a five-year fixed rate
- Work with a lender that didn’t require employment by a multi-national company
Challenges
Many lenders offering buy-to-let mortgages for expats in Australia require the borrower to be employed by a multi-national company, which wasn’t the case for this client. On top of this, his income was paid in Australian dollars, and not every lender that accepts AUD income for a UK mortgage is comfortable with a second product like a buy-to-let remortgage. This narrowed the pool of lenders willing to consider the case, particularly while also trying to secure a competitive five-year fixed rate.
Solution
We reviewed the current mortgage market to identify who was offering the best five-year fixed rates for expat buy-to-let mortgages, and referred the client’s circumstances to the lender offering the cheapest rate at the time. Their standard criteria called for employment with a multi-national company, but because the client worked in a respected profession, they were able to accept his employment and provide a longer-term mortgage with a highly competitive five-year fixed rate.
Outcome
The client secured a five-year fixed rate expat buy-to-let mortgage, moving away from his expired consent-to-let arrangement without needing to meet the lender’s usual multi-national employer requirement. For an idea of what you could borrow on a similar remortgage, our expat mortgage calculator gives an instant estimate.
Summary
Since Brexit, securing expat mortgages has become a more difficult task, and standard mortgage brokers will often read the stated criteria and disregard lenders if a client doesn’t fit 100%. That’s why it’s important to use a specialist expat mortgage broker, with advisors experienced enough in the expat mortgage market to find the best solution even for complex scenarios – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider:
- Not every expat buy-to-let lender requires employment with a multi-national company.
- A consent-to-let arrangement can be withdrawn once you’re permanently based overseas.
- Comparing the whole market can uncover a more competitive fixed rate than your existing lender offers.
Frequently Asked Questions
Can I get an expat buy-to-let mortgage without working for a multi-national company?
Yes, some lenders will consider other respected professions.
It comes down to finding a lender comfortable assessing your specific employment, rather than requiring a multi-national employer as standard.
What happens when my lender withdraws consent to let?
You’ll need to move onto a proper buy-to-let mortgage rather than continue on a residential deal.
Lenders can withdraw consent to let once they know you’re permanently based overseas, so it’s worth acting quickly to avoid a gap in cover.
Can expats get a five-year fixed rate on a buy-to-let mortgage?
Yes, some lenders offer competitive five-year fixed rates to expats.
Comparing the whole market is worthwhile, since rates and criteria vary considerably between expat-friendly lenders.
Has Brexit made it harder to get an expat mortgage?
It has added complexity for many standard brokers and lenders.
A specialist expat mortgage broker with experience navigating post-Brexit criteria can still find solutions that a generalist broker might overlook.
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.
- UK mortgage on AUD income – How lenders assess Australian dollar earnings for a UK mortgage.
- expat mortgage income requirements – The income evidence expat lenders typically expect.
- expat buy-to-let remortgage case study – A similar consent-to-let exit for a US-based expat.
- expat mortgage case studies – Real examples of expat and foreign national UK mortgage completions.