UK Mortgages for Expats & Foreign Nationals Living in Australia
Acquiring a UK Residential or BTL Mortgage from Australia might sound like potentially a daunting proposition, but with the right guidance and support, it is definitely achievable. Every year, countless Australian expatriates and foreign nationals invest in UK property with very unique challenges, whether that be lender restrictions, currency exchange differences, or anything in-between.
As expat mortgage experts, Expat Mortgages UK are well aware of the complications involved in cross-border financing. Our Specialist Team will help guide you through the UK mortgage arena from Australia to give you access to the best rates and mortgage products tailored to your personal circumstances.
Who Can Apply for UK Expat Mortgages?
- UK nationals living in Australia: The primary group of our clientele consists of British nationals living in Australia, as most expat lenders offer customary mortgage products aimed at British expats living in Australia.
- Self-employed and salaried applicants: An applicant for a residential UK expat mortgage needs to be either self-employed or salaried. Self-employed people typically require 1-2 years’ accounts, while salaried individuals must evidence stable employment and income.
- Expats with UK income or overseas income: Expatriates with income earned in the UK or abroad will be accepted. Performance in pounds, Australian dollars, or a blend of currencies is acceptable; specialist lenders will work for you.
- Minimum deposit and credit score requirements: Minimum deposit plus credit score are general requirements: A minimum of between 25 – 40% of property’s value is typically needed as a deposit, and the bigger the deposit, the better the rates available. A UK credit history is useful, yet most lenders recognise the unique situations that expats find themselves in and offer flexibility regarding their assessments.
Rest assured – we are in business to successfully secure your expat mortgage for you, tailored to your particular circumstances and source the lenders most likely to accept your application, so don’t worry the geographical distance or living on the other side of the world won’t be an issue!
Mortgage Options for UK Expats in Australia or BTL mortgage for an Australian National
Buy-to-Let Mortgages
Expat Buy-to-let mortgages for rental income will allow you to invest in UK property while living in Australia. This means you may easily build-up a property portfolio whilst taking advantage of the stable rental market in the UK.
Residential Mortgages
Are you planning on returning to the UK? This Expat Residential Mortgage will allow you to secure your future home right now. Many expatriates buy property years ahead of their return date so as not to be locked out of the most desirable areas, in order to avoid price increases over the years.
Remortgaging Options
Already an owner of a UK property? Remortgaging could mean getting better interest rates, securing new mortgage terms, or even potentially releasing equity for other investments. A core part of our service is helping expatriates refinance existing UK properties while living in Australia.
Challenges Expats in Australia Face & How We Help
Australian residents looking to buy property in the UK face several challenges such as:
- Restricted access to mainstream UK lenders whilst living in Australia.
- Currency fluctuations while calculating affordability.
- Difficult income verification due to Australian income.
- Limited mortgage products as most come from traditional banking sources.
Our Expat Mortgage Solutions
These are the ways we can assist Australian’s seeking Expat Mortgages UK:
- Access to all the specialist mortgage lenders for expats to ensure widest range of options.
- Currency strategies to manage risks with the exchange rate.
- Expat mortgage advice specific to your situation.
- Dedicated case management with direct personal contact via phone and email – NO voicemail. NO Contact Centres. Personal service comes FIRST with us.
Experience seamless, round-the-clock service with ‘WiiN,’ our exclusive 24/7/365 Customer Portal, designed to eliminate time zone barriers for Australian clients.
UK Mortgage Application Process for Australian Residents
Initial Consultation
We’ll review your financial situation to assess your eligibility, affordability and mortgage options. This consultation will help you understand your best options and set realistic expectations.
Collecting Documentation
We will take you through the collection of the necessary paperwork:
- Proof of income (payslips, tax returns)
- UK credit history or Australian credit reports
- Evidence of deposit funds
- Identity and address verification
Source Best Lender and Submit Application
Our specialist team of Expat Mortgage Advisors will source across the entire mortgage market and determine the best lender options and discuss the pros and cons of each option. Once you’ve decided on your preferred mortgage option, we will then submit your mortgage application directly to the lender for you, as well as provide you with quotes for supplementary services such as solicitors, valuations and insurances.
Most importantly, we will package and present your mortgage application as strongly as possible and exactly in the format lenders wish to see it, in order to maximise the chances of approval.
Approval & Mortgage Offer
Following approval by the lender, we will receive your formal “Mortgage Offer” and explain in simple, plain-language terms all the terms and conditions for total transparency and to avoid any nasty surprises!
Completion
We all coordinate with all parties involved to ensure a smooth completion of the mortgage and transfer of the property’s title to you to conclude the transaction.
Try our Expat Mortgage Calculator UK today to discover monthly mortgage costs and the deposit needed.
Why Choose Expat Mortgages UK?
Unrivalled Market Access
We provide access to mortgages to foreign nationals and British expats who live in Australia, including all of the specialist expat lenders that specifically cater for what can often be complex personal and financial circumstances. This “whole-of-market” approach ensures you receive the very best rates and terms available in the market.
Extensive Expat Experience
Our team has many years of experience handling expat mortgages, so we know exactly what lenders require. Our expertise ensures your application is presented effectively, significantly increasing your approval likelihood.
Comprehensive Support
Beyond specialist mortgage advice, we can also assist with:
- Legal requirements and solicitor recommendations.
- Property valuations.
- Insurance options for your UK property.
- Insurance options for you personally.
Stress-Free Process for Australian Clients
We’ve streamlined our process to accommodate our expat clients in Australia. Here’s just some of the ways we make it easier to work with us:
- Flexible meeting times that work with your time zone.
- Digital document submission.
- Regular updates that don’t require middle-of-the-night phone calls.
- Our WiiN Customer Portal providing you with 24/7/365 real-time updates.
FAQs: UK Mortgages for Australian Residents
Can I get a UK mortgage whilst living in Australia?
Yes absolutely – that’s what we here for! There are now many lenders with both residential mortgage products exclusively for expatriates and also BTL mortgages for Australians, among other things.
What deposit is required for expat mortgages?
You’ll typically need between 25% – 40% deposit for an expat mortgage, depending on your exact scenario and personal circumstances and depending on the lender’s own criteria.
Do I need a UK bank account?
No, although a UK bank account is always very useful, it is often not a necessity. Certain expat mortgage lenders will accept payments via Australian bank accounts. Currency conversions will apply in these instances just to bear in mind – we can discuss this with you don’t worry!
Do I need to be in the UK to apply and complete the mortgage?
No. Everything can be taken care of from Australia don’t worry. We will manage the entire application for you from start through to completion, including working closely with your solicitors and lenders throughout the entire process – that’s what we’re here for!
Does currency exchange affect my UK mortgage?
It can, depending on the currency’s fluctuations, be higher or lower than your effective taxes on mortgage costs. We usually guide these risks and educate on currency specialists who provide better exchange rates.
What is the maximum Loan to Value I can expect?
Most expat mortgages will offer a maximum Loan-to-value (LTV) of 75%. However, some specialist lenders can, under specific circumstances, provide LTVs of up to 80%. Once we’ve determined your exact personal circumstances and requirements, we shall short-list the most appropriate lenders for you.
How long does it take to get a Mortgage offer and complete the whole process?
This very much depends on the type of mortgage – i.e if it is either a new purchase or a remortgage of an existing property.
For remortgages, we advised clients that typically the whole process from start to finish can be between 4 – 12 weeks, subject to the lenders and solicitors acting swiftly.
For new purchases, this very much depends on whether a “chain” in involved or not. If no chain, then 6 – 12 weeks is typical. When a chain is involved however, it very much depends on how many parties exist in the chain and how swiftly all parties respond to information requests etc. A realistic average timescale is around 12 weeks in this instance, but this can also be significantly longer where large chains exist.
Tax Considerations of a UK Mortgage When Living in Australia
If you are a UK expat or foreign national living in Australia and have a UK mortgage, it’s really important that you understand the cross-border tax implications. Because both the Australian and UK tax authorities may have claims on your capital gains or property income, careful tax planning is crucial to avoiding double taxation or unanticipated liabilities.
Owners of rental properties in the UK who reside in Australia are typically required to pay UK income tax on any rental income through the UK Self Assessment system. You may be able to reduce your UK tax liability by deducting allowable expenses such as maintenance costs, mortgage interest and letting agent fees.
If you are an Australian tax resident, you have to show all of your worldwide income – including rental income from the UK – on your Australian tax return. The UK-Australia Double Taxation Agreement fortunately helps prevent paying taxes twice on the same income. Generally speaking, you can write off any taxes paid in the UK from those owing in Australia on that income.
The type of the property affects how mortgage interest on a UK property is handled for Australian tax considerations. Should the property be rented, mortgage interest could be deductible. If held for personal use, Australian tax laws could restrict the amount of interest expenses that could be deducted though.
Should you sell your UK property and profit, you could be liable for UK Capital Gains Tax (CGT). Australia may also tax the gain unless a particular exemption covers, such the main residence exemption under Australian tax law.
Given the complexity of coordinating UK and Australian tax systems, particularly with regard to rental income and property sales, it is highly advised that you speak with a tax advisor knowledgeable in UK–Australia cross-border taxation.
Start Your UK Mortgage Journey from Australia Today!
Don’t let distance stop you. As specialists in UK mortgages for Australian Expats, our team will secure your financing and make the whole process smooth and stress-free. Start your free consultation today.