Client
A client with a large portfolio of 17 properties, held across mixed ownership structures: personal name, a limited company with his wife, and a limited company with his sister. The sister lives in Australia and, while a shareholder in the limited company, is not an active director, and the client came to us for a limited company buy-to-let remortgage.
Background
Two of the properties, held under the limited company with the sister as a 50/50 shareholder, were coming to the end of their fixed rate and needed remortgaging. We had previously completed these applications on an expat mortgage basis, which required both applicants to be on the application. With expat rates having increased significantly, the task this time was to find the best possible deal in a difficult market.
Requirement
- Remortgage two properties held under a limited company with a UK director and an expat shareholder
- Secure a more competitive rate than the previous expat mortgage deal
- Work with a lender comfortable with the client’s existing 17-property portfolio
- Explore whether the application could be based on the UK director alone, bypassing the need for the Australia-based shareholder to apply
Challenges
With expat mortgage rates having risen considerably, requiring the Australia-based sister as a joint applicant on an expat basis would have meant a significantly less competitive deal. On top of this, many lenders apply overall portfolio limits or restrict ownership and rental stress calculations for landlords with large portfolios, which narrowed the pool of lenders willing to consider the case at all.
Solution
As a whole-of-market expat mortgage broker, we knew some lenders have no overall portfolio limits and don’t restrict ownership, loan-to-value or overall rental stress. We were also aware that some lenders will consider limited company (SPV) applications without taking shareholders into account, provided they aren’t a director. We sourced the deal based on the UK-resident director alone, to see if we could bypass the need for an expat mortgage and secure a standard limited company buy-to-let mortgage exclusively for UK-based clients.
The lender we found did exactly as expected: they only needed the director of the company to apply, disregarding any shareholders in the background. This gave access to a far better deal than would have been available had both shareholders been required on the application.
Outcome
Both properties were successfully remortgaged onto a standard limited company buy-to-let rate, based on the UK director’s application alone, avoiding the need for the Australia-based shareholder to be included and securing a considerably more competitive deal than an expat mortgage would have allowed. To see what a similar remortgage could look like, our expat mortgage calculator gives an instant estimate.
Summary
This case shows it’s possible to achieve a competitive outcome even with a complex structure involving multiple moving parts – it comes down to knowing the lenders and understanding their criteria. As a whole-of-market broker, our expat mortgage advisors can identify when a case can bypass expat criteria entirely – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider for a portfolio landlord remortgage with a UK director and an expat shareholder:
- Some mortgage lenders have no restrictive limits on your existing property portfolio.
- Some lenders are happy to lend to the director of the company only, disregarding the shareholders.
- It’s possible to secure standard limited company buy-to-let rates even for a complicated structure that involves an expat shareholder.
Frequently Asked Questions
Can a limited company buy-to-let mortgage ignore an expat shareholder?
Yes, some lenders only assess the director of the company, not the shareholders.
If the expat shareholder isn’t an active director, some lenders will disregard them entirely, avoiding the need for an expat mortgage application.
Do UK lenders limit how many properties you can hold in a portfolio?
Some do, but not all.
Certain lenders apply no overall portfolio limits and don’t restrict ownership structure, loan-to-value or overall rental stress, which suits larger landlords.
Is it cheaper to remortgage as a UK applicant rather than an expat?
Often, yes, since expat mortgage rates tend to be higher.
Where a lender only requires the UK-based director to apply, bypassing the expat criteria can unlock a significantly more competitive rate.
Can a shareholder living abroad affect a limited company mortgage application?
It depends on whether they’re also a director.
Some lenders only assess directors, meaning a shareholder based overseas may not need to be included on the application at all.
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.
- buy-to-let mortgages for expat landlords – Financing a UK rental property as an expat.
- expat remortgages – Switching from a residential mortgage onto the right expat product.
- expat mortgage income requirements – The income evidence expat lenders typically expect.
- expat mortgage case studies – Real examples of expat and foreign national UK mortgage completions.