You must feel like your friend has reached a big milestone every time they buy property in another country. If you want to buy property abroad, especially in the UK, after seeing your friend, you should know what challenges you might face ahead of time.
A lot of expats like you are looking into an expat buy-to-let mortgage UK because they want to buy rental properties and keep a home base in the UK. But just to make you aware, whilst it is certainly achievable, it is much harder for people who live overseas to secure mortgages on UK property.
Why Expats Choose Buy-to-Let Mortgages?
A lot of UK expats think that buying property in the UK is a good way to invest their money. It gives them a steady stream of rental income, long-term financial security and a way to stay connected to the UK. British expatriates can secure a buy-to-let mortgage, but mortgage lenders often see them as higher risk. The main reasons are that they earn their income abroad, don’t have a UK credit history, or that it’s harder to manage property from another country.
How to Secure an Expat Buy-to-Let Mortgage?
- Be Prepared with a Deposit and UK Financial Links
If you’re a British expat looking for an expat mortgage in the UK or an expat mortgage UK buy-to-let, lenders will ask you for a bigger deposit than they would from a UK resident. In this case, a 25% deposit is typical. Also, if you have a UK bank account, a UK postal address and a record of your financial activity in the UK, the chances your application being approved increase significantly.
- Understand What Lenders Want
Different lenders have different rules, but most want to see a minimum income, usually starting at £35,000. Some lenders like applicants who have worked in property management or rental before. Some lenders only lend to UK expats who live in certain countries. If you know these things ahead of time, you can find the right lenders.
- Work with a Specialist Broker
If you work with a broker who specialises in UK buy-to-let mortgages for expats, you might save a lot of time. They can help you with the paperwork and also know which lenders are open to working with expats. This is a very useful feature to have if you live in a different time zone or get money from more than one country.
- Get Your Documents in Order
Be ready to turn in very specific documentation. You might need to show proof of income from abroad, financial statements showing rental income from other properties, bank statements and identity papers etc. The process will go much faster if you have these things ready before you apply.
Owning Multiple Properties Abroad: What It Means for You
UK mortgage lenders will see you as an experienced landlord if you own a lot of properties in other countries. This factor will certainly help you with your UK mortgage application. But they will also want to make sure that your commitments abroad won’t make it hard for you to handle a buy-to-let mortgage in the UK. Make sure you have all the paperwork and records that go with these properties. Your application will progress much smoother if you do this and evidence all proof of property and income when asked.
Current Market Outlook for Buy-to-Let
Foreign nationals still find the buy-to-let market in the UK appealing for investment purposes. Interest rates did increase for several years, but they have recently started to slowly drop again which is good news. Because there isn’t sufficient supply of property to meet demand, rents are still going up in many parts of the UK. Because of this, now is a great time for expats to think about investing in UK property whilst living abroad, especially if they have the right amount of money and paperwork ready.
Key Steps at a Glance
- Be ready to put down at least 25% deposit.
- Keep a bank account in the UK and some money ties to the UK.
- To secure the right lenders, work with a specialist expat mortgages UK broker.
- Make sure all of your income and property papers are at hand.
- Keep up with the most recent trends in the UK property market.
Conclusion
If you’re an UK expat and own more than one property abroad, it is easier for you to get a buy-to-let mortgage in the UK. You only need to make sure that your paperwork is up to date and accurate, your finances are in order, and you have the right amount of money to put down as a deposit.
You need to use an experienced expatriate mortgages UK broker that knows what they’re doing and has all the knowledge to place you with the best lenders for your specific circumstances. If you work with a good expat mortgage broker, you can quickly secure an expat buy-to-let mortgage.
Owning property in another country will show expat mortgage lenders that you know how to handle investments professionally. Now is a good time to consider your options because the UK property rental market continues to be strong and interest rates are relatively steady and should potentially continue to drop further in mid – long term.
Need Help Getting Your Expat Buy-to-Let Mortgage?
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