Client
A British couple who had been expats living in Spain for several years, alongside a portfolio of buy-to-let properties in the UK. The husband was employed by an international company, while the wife had predominantly been a housewife. With family ties back in the UK, the couple wanted to move home, and came to us for a residential mortgage for expats moving back to the UK.
Background
The wife and children were planning to move back to the UK first, with the husband following once possible. Ahead of the move, the wife had already secured a job to start on her return, meaning her income existed only as an anticipated future salary rather than current, provable earnings. The husband, meanwhile, had recently started a new role within his existing field and was still serving a probation period. Alongside their own income, the couple wanted the rental income from their UK buy-to-let portfolio taken into account to help satisfy affordability.
Requirement
- Secure a residential mortgage ahead of the family’s full return to the UK
- Use the wife’s anticipated new UK salary, not yet in payment
- Work with a lender comfortable with the husband still being in a probation period
- Count rental income from their buy-to-let portfolio towards affordability
- Complete quickly, as the seller was threatening to withdraw from the sale
Challenges
Anticipated future income is difficult for many lenders to accept, since there is no track record of the wife actually being paid in the new role. A probation period is also a common stumbling block, even where the husband was continuing in the same field he had worked in for years. On top of this, the couple needed a lender willing to factor in rental income from their buy-to-let portfolio while they were still living abroad, and to do so within a tight timeframe set by the seller.
Solution
As a whole-of-market expat mortgage broker, we approached lenders directly to explain the couple’s full circumstances before submitting a formal application, rather than relying on a standard automated assessment. Working to the seller’s deadline, we identified a lender comfortable with the wife’s anticipated income, the husband’s probation period, and the rental income from their property portfolio. To see what you could borrow in a similar scenario, our expat mortgage calculator gives an instant estimate.
Outcome
A formal mortgage offer was secured within the seller’s timeframe, allowing the purchase to proceed without the sale falling through. The family was able to come home to be with their relatives in the UK, with the residential purchase completing smoothly around their staggered return.
Summary
This case shows that securing a residential mortgage for expats moving back to the UK is achievable even where one applicant’s income is still anticipated and the other is in a probation period. As a whole-of-market broker, our expat mortgage advisors have the ability to search the market and find a suitable lender when other avenues have been exhausted – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider:
- Some lenders will accept anticipated future income for a new role not yet started.
- A probation period does not automatically rule out a mortgage application.
- Rental income from a UK buy-to-let portfolio can be used to help satisfy affordability.
- Explaining a case directly to lenders can help secure an offer within a tight deadline.
Frequently Asked Questions
Can I get a UK mortgage using anticipated future income?
Some lenders will consider a new salary that hasn’t started yet.
It comes down to finding a lender comfortable assessing a confirmed job offer and future income rather than requiring an existing track record of payment.
Does being on probation in a new job stop you getting a mortgage?
Not necessarily, especially if you’re continuing in the same field.
A number of lenders will look past a probation period where the applicant has a consistent employment history in the same line of work.
Can rental income from a buy-to-let portfolio be used for a residential mortgage?
Yes, some lenders will factor this into affordability.
Rental income from an existing buy-to-let portfolio can support a residential application, alongside the applicants’ own employment income.
Can expats buy a UK home before fully moving back?
Yes, it’s a common scenario for families relocating in stages.
Lenders can accommodate a residential purchase ahead of a full return, particularly where family members are moving back at different times.
If you have any questions relating to a residential mortgage for expats, contact us today to speak directly with one of our CeMAP certified expat 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 Spain – How lenders assess applications from British expats based in Spain.
- 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.