Client
A couple, both expats currently based in the UAE and working full time, looking to purchase their first home back in the UK, in which they would reside for a third of the year. They came to us for a first-time buyer mortgage with adverse credit.
Background
Following our free assessment of their circumstances, it became clear that one of the applicants had adverse credit on multiple accounts within the last six years. Combined with their residential status seeking UK mortgages for expats living in the UAE, this meant the number of lending options was limited. However, the second applicant had a clean credit history, and the clients had a healthy 20% deposit, both of which helped the situation.
Requirement
- Purchase a first home in the UK for part-time residence
- Achieve 80% loan-to-value on a healthy 20% deposit
- Work with a lender comfortable with adverse credit on one applicant
- Secure a competitive interest rate despite the added complexity
Challenges
Adverse credit on one applicant added an extra layer of complexity that needed a whole-of-market approach to solve. Combined with their UAE residential status, the number of lending options was limited further still, narrowing the pool of lenders willing to consider a first-time buyer case with this profile.
Solution
We discussed the case directly with multiple expat residential mortgage lenders, and two came back with the best options for the clients. One lender advised that any offer would be subject to the individual underwriter’s discretion, presenting a risk of potential decline and delay. We chose the second lender instead, since both clients fitted well within their standard criteria.
Outcome
A Decision in Principle was secured within 24 hours, and two weeks later the clients had an offer accepted on their first home, with a highly competitive interest rate secured at 80% loan-to-value. For an idea of what you could borrow in a similar scenario, our expat mortgage calculator gives an instant estimate.
Summary
Clients with adverse credit often believe it will be difficult to obtain mortgages for British expats, but working with a specialist expat mortgage broker, our expat mortgage advisors have many years of experience finding solutions for complex scenarios, including expats and foreign nationals with adverse credit. Our clients are regularly surprised at how competitive the interest rates we’re able to secure them are – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider:
- Some lenders will consider adverse credit on one applicant if the other has a clean credit history.
- A healthy deposit can help offset added complexity in a lending case.
- Choosing a lender that fits your standard criteria can avoid the risk of underwriter discretion.
Frequently Asked Questions
Can I get a first-time buyer mortgage with adverse credit?
Yes, some lenders will still consider your application.
It comes down to finding a lender comfortable with your specific credit history, especially if a joint applicant has a clean record.
Does a joint applicant's clean credit history help a mortgage application?
Yes, it can significantly help.
A strong credit history from one applicant can help offset adverse credit on the other, particularly alongside a healthy deposit.
Can expats in the UAE buy a first home in the UK?
Yes, some lenders will consider UAE-based expat applicants.
It’s worth working with a broker experienced in UK mortgages for expats living in the UAE, since not every lender covers this residency status.
What is a Decision in Principle, and how quickly can it be secured?
It’s an initial indication from a lender of how much they’d be willing to lend.
With the right case prepared, a Decision in Principle can sometimes be secured within 24 hours.
If you have any questions relating to an expat 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 the UAE – How lenders assess applications from expats based in the UAE.
- expat residential mortgages – Financing a residential home in the UK as an expat.
- expat mortgage income requirements – The income evidence expat lenders typically expect.
- expat remortgages – Switching from a residential mortgage onto the right expat product.
- expat mortgage case studies – Real examples of expat and foreign national UK mortgage completions.