What are the loan to value limits on an expat mortgage?

Maximum loan to value is typically 80%, with a standard minimum loan of £100,000. First-time landlords can have their loan to value restricted, often to 65%.

Expat Capital Raise Remortgage | Vietnam Case Study

Q: What is the difference between a Buy to Live and Buy to Let expat mortgage?

Buy to Live is for clients working abroad whose family live in the UK property. Buy to Let is for an investment property let to tenants, assessed on rental income and loan to value like a UK resident application.

Q: Can an expat capital raise on an unencumbered UK property?

Yes. An expat can remortgage an unencumbered property to release equity for further purchases. A longer fixed rate can apply a lower stress rate, allowing more funds to be drawn.

Client

An expat resident of Vietnam with an existing portfolio of three UK properties, who came to us for an expat mortgage to capital raise against one of them. The aim was to release funds to grow the portfolio further.

Background

The client wanted to capital raise on an unencumbered property – one owned outright with no mortgage against it – to fund the purchase of further investment properties. To raise the full amount required, the case needed to be structured carefully around how the lender would assess affordability when drawing funds from the property.

Requirement

Capital raise against an unencumbered UK property in the portfolio
Release enough funds to purchase further investment properties
Secure a five-year fixed rate to benefit from the lower stress rate on the drawdown
Work with a lender comfortable with Vietnam as a country of residence

Challenges

The amount the client wanted to raise depended on the stress rate the lender applied when assessing the borrowing. A shorter-term product would have been tested at a higher stress rate, reducing the funds available – so a five-year fixed was needed to unlock the lower stress rate and release the required amount. On top of this, the lender had to be comfortable with the client’s country of residence, as expat lenders restrict which countries they will accept applicants from.

Solution

We structured the case as a five-year fixed remortgage for expats, using the lower stress rate applied to that term to release the full amount the client needed. The application was accepted by the lender and ran smoothly through underwriting and valuation, with no complications along the way.

Outcome

The client successfully capital raised against the unencumbered property, releasing the funds needed to move ahead with further investment purchases and continue growing the portfolio. For an idea of what you could raise in a similar scenario, our expat mortgage calculator gives an instant estimate.

Summary

Capital raising on an unencumbered property is an effective way for expat landlords to fund portfolio growth, but the amount you can release often hinges on the product term and the stress rate that comes with it. Choosing the right fixed period can be the difference between raising enough and falling short – browse our other expat mortgage case studies for similar examples.

Key Point

Key factors to consider for expat buy-to-let and buy-to-live mortgages:

Maximum loan-to-value is typically 80% for both buy-to-let and buy-to-live.
Minimum loan as standard is usually £100,000.
Lenders restrict which countries they will accept applicants from – any country under international sanctions is typically prohibited.
When assessing affordability, lenders take a shaving off overseas income to allow for exchange-rate fluctuations.
Clients must hold a UK bank account, and some lenders require a UK credit footprint.
First-time landlords can have their loan-to-value restricted, typically to 65%.

Frequently Asked Questions

Can an expat capital raise on an unencumbered UK property?

Yes, releasing equity from a mortgage-free property is a common way to fund further purchases.
The lender assesses affordability on the drawdown, so the amount available depends on the product and stress rate chosen.

Why does a five-year fixed rate let me raise more money?

Longer fixed terms are usually tested at a lower stress rate.
A lower stress rate increases the amount a lender will release, which can be the difference between raising enough and falling short.

What's the difference between a buy-to-live and buy-to-let expat mortgage?

Buy-to-live is for a property your family occupies while you work abroad; buy-to-let is for a rental investment.
A buy-to-live property can’t be left empty for 30 days or more, as this would invalidate the buildings insurance.

Can lenders accept applicants living in Vietnam?

Yes, some expat lenders accept Vietnam as a country of residence.
Lenders restrict which countries they’ll consider, so it’s worth confirming this early with a specialist broker.

If you have any questions relating to an expat remortgage, 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

UK mortgages for expats in Vietnam – How lenders assess applications from expats based in Vietnam.
expat buy-to-let mortgages – Financing a UK rental property as an expat landlord.
expat mortgage application guide – The documents, timeline, and steps involved in getting an expat mortgage approved.
currency haircuts explained – Why lenders discount foreign-currency income and how it affects borrowing.
expat mortgage case studies – Real examples of expat and foreign national UK mortgage completions.

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Expat Capital Raise Remortgage on an Unencumbered Property – Case Study