Client
A British expat living and working in Angola, on a fixed-term contract of three years with a good income and no bad credit. She came to us for a second residential mortgage to buy a home in the UK for her mother.
Background
The client wanted to purchase a second residential property in the UK for her mother, who lives in Scotland. Once her fixed-term contract in Angola ends, she’ll remain employed by the same company back in the UK, but on a lower salary, so any lender needed to be comfortable with that future change in circumstances as well as her current position.
Requirement
- Purchase a second residential property in the UK for a family member
- Work with a lender comfortable with the client’s country of residence, Angola
- Secure a lender willing to lend on a property located in Scotland
- Ensure affordability held up against the client’s lower future salary once her fixed-term contract ends
Challenges
Not every lender is comfortable with applicants resident in African countries, so it was important to find one that specifically accepted Angola. A second residential mortgage narrows the lender pool further still, and the pool narrows again for properties located in Scotland, which not every expat-friendly lender covers. On top of this, the client’s income was due to drop once her fixed-term contract ended, so affordability needed to hold up on the lower salary as well as the current one.
Solution
As a whole-of-market expat mortgage broker, we knew some lenders apply more flexible affordability scoring for expats than others. We identified multiple options for mortgages for British expats that were comfortable with the client’s country of residence, since not every African country is accepted. The lender we chose accepted both the second residential aspect and the fact the property was in Scotland, and we confirmed affordability would still work on the client’s lower future salary before proceeding.
Outcome
The client secured a second residential mortgage on a property in Scotland, with affordability confirmed against both her current Angola-based income and her lower future UK salary. For an idea of what you could borrow in a similar scenario, our expat mortgage calculator gives an instant estimate.
Summary
Purchasing a second residential home as an expat can be difficult depending on the country you reside in and how expat lenders calculate affordability, but there are options. The country the property is being purchased in matters too – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider for an expat residential mortgage when you’re an expat or foreign national and already own another property:
- Income and affordability
- Country of residence
- Country of purchase
- Whether the lender will even allow a second residential property
- Any changes to future income that might affect the application
Frequently Asked Questions
Can I get a UK mortgage as an expat living in Angola?
Yes, though not every lender accepts every African country.
It comes down to finding a lender specifically comfortable with your country of residence, rather than expat income in general.
Can an expat buy a second residential property in the UK for a family member?
Yes, some lenders will consider this.
It’s worth checking upfront whether a lender allows a second residential property at all, since not all do.
Is it harder to get a mortgage on a property in Scotland as an expat?
The pool of lenders is smaller than for England and Wales.
Not every expat-friendly lender covers properties in Scotland, so it’s worth checking this early in the process.
What happens if my income is due to drop after a fixed-term contract ends?
Lenders can factor in a known future change to your income.
Confirming affordability against your lower future salary, not just your current income, helps avoid problems further down the line.
If you have any questions relating to an expat residential 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
- expat mortgage income requirements – The income evidence expat lenders typically expect.
- expat remortgages – Switching from a residential mortgage onto the right expat product.
- buy-to-let mortgages for expat landlords – Financing a UK rental property as an expat.
- 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.