UK Mortgages for Expats & Foreign Nationals Living in UAE
Many British expats still have the dream of owning a home in the UK even after settling in UAE. Some people see buying a house in the UK as a long-term plan, like building a base after retirement. Some people consider it a smart investment. But buying a property in the UK from UAE is not that simple. The UK banks and lenders all have their own rules; there is also a difference in income proof and currency. On top of that, there is a lot of paperwork too, which can complicate things further.
But with the right support and Team to help you, the journey can be easy. An expat mortgage brokering service that understands your needs and walks you through every step of the journey, regardless of your time zone and country of residence.
Expat Mortgages UK is your ideal partner in that journey, making it easy for British expats living in the Emirates – especially those in Dubai and other expat hotspots, to either remortgage, or buy a home in the UK.
Buying Property in the UK from the UAE: Who Can Apply? (Eligibility Criteria)
If you are living in UAE and thinking of buying property in the UK, then there is nothing to worry about. These days, many options are available for expats and foreign nationals.
If you are a British expat settled in UAE, or a citizen of another country, in both situations, there are plenty of options available for you successfully secure a UK mortgage when you work with the right broker.
Whether you’re employed or running your own business, if you have a stable income, whether it’s from UAE or the UK, you can apply. In some cases, it’s entirely possible to secure a UK expat mortgage from UAE, even if you don’t have a credit history in the UK.
You will need to provide a minimum deposit, typically around 25% and show a solid credit score, but rest assured, we are here to guide you through it.
Mortgage Options for British Expats in UAE
When you are an expat homebuyer or existing UK homeowner in the UAE, you have a variety of mortgage options available – here are some of the main options:
If you want to buy property in the UK and rent it out, then this is your best option. This type of mortgage can give you a steady source of income in the UK while your life continues in the Emirates.
If you plan to return to the UK either now or at some point in the future, this option is best suited to you. With this type of mortgage, you can buy your own home in the UK and live in it whenever you wish.
If you already own a property in the UK you can remortgage it at any time to secure better rates and also potentially release equity to provide you with spare capital.
Our team is ready to guide you through all these options based on your needs.
Challenges Expats Face & How We Help
Expats in the UAE looking to buy property in the UK can face several challenges. Here are some of the main problems that are most commonly encountered:
Difficulty accessing UK lenders
While living in UAE, accessing standard UK lenders such as the High Street lenders can be difficult. Sometimes, they do not have a clear understanding of your personal situation and financial circumstances from afar and are often hesitant to offer mortgages to non-UK residents.
Currency differences and income verification
The difference between UAE dirhams and the UK currency, as well as properly verifying your income, can often be a challenge.
Limited mortgage options
There are limited mortgage options available from traditional banks, especially if you are an expat or foreign national.
Tax Considerations of a UK Mortgage When Living in UAE
If you are a UK expat or foreign national living in the UAE with a mortgage in the UK, it is important to understand the cross-border tax consequences. The UAE has no personal income tax regime, but the UK retains the right to tax the income generated within the UK, particularly rental income and capital gains.
If you rent out a UK property while living in the UAE, you will usually have to pay UK income tax on the rental income through the UK Self Assessment process. You can offset some of your taxable income by allowable expenses that can include mortgage interest, maintenance and repair costs as well as letting agent fees.
As the UAE does not tax personal income, there is no potential for double taxation from the UAE side, but you must still adhere to UK tax rules, and compliance is vital, particularly for non-resident landlords. You may need to register with the UK’s Non-Resident Landlord Scheme, which ensures that UK tax is properly withheld at source if you are not self-filing returns.
Tax relief for mortgage interest is available under the UK tax law. However, various changes made in recent years may affect the deductibility of mortgage interest, particularly for higher-rate taxpayers. Each one of these changes will affect your net rental income and your overall return on investment.
In addition, if you are fortunate enough to make a profit on your UK property when you sell it, then you are liable for Capital Gains Tax (CGT) too, even if you’re a resident in the UAE. Since 2015 and again in 2019 the rules of CGT that applied to non-residents in the UK changed, and now most disposals of UK property come within the parameters of UK tax, and the exemptions are ever narrowing too.
Tax rules frequently change and are also dependent upon your personal circumstances, so it is recommended to consult with a specialist Tax Advisor who understands UK expatriate taxation to give you the best advice possible. This is particularly important if you are considering buying property or selling property in the UK or if you receive income from property when letting it out whilst you are living in the UAE.
How can we help?
Proof of Income & Employment
Lenders require stable income evidence, such as salary statements, tax returns and employer confirmation.
Connect to specialist lenders
We work with ALL UK lenders, including the specialist ones that you can’t approach directly. These lenders are very willing to offer mortgages to expats and foreign nationals both for either new property purchases or remortgages.
Expat-friendly brokers and customised advice
Our team provides customised advice and a very personal service for your specific needs and circumstances. When you work with us, you get your own Dedicated Mortgage Advisor and Case Manager, with their direct phone lines and email –
so, you can contact our team directly without any delay and certainly NO call centres!
Transparency and updates
We give you regular updates at every step of the process and we constantly chase-up all parties involved via our Case Manager. Additionally, you can track your application’s progress 24/7 via our innovative client portal which also provides you with real-time updates.
Expat Mortgage in Dubai
Dubai has always been the top destination for UK expats in the UAE and it’s no surprise why. It’s a lively, fast-paced city with great career opportunities, but many people still want to keep a connection to home by buying property in the UK.
We’ve worked with plenty of clients in Dubai, helping them sort out mortgages for everything from city flats to substantial family homes. The mortgage process can be a bit different when you’re applying from overseas, but as an experienced expat mortgage broker in the UK, we make things much simpler for you.
Expat Mortgage in Abu Dhabi
Abu Dhabi is quickly building a name for itself as a brilliant place for expats to live and a lot of British nationals living there are also looking ahead to their potential future return to the UK.
No matter if it’s either a Buy to Let mortgage or residential you need, we can help. Getting a UK mortgage when you’re living overseas can feel a bit daunting, but we’ve helped plenty of people in Abu Dhabi do exactly that over the years. We’ll quickly determine what’s possible, what you’ll need to provide and then connect you to lenders who are used to working with UAE expats.
Expat Mortgage in Sharjah
Sharjah’s a great choice if you prefer a quieter lifestyle but still want to be close to Dubai. More and more British expats are settling there and lots are thinking about investing in property back home in the UK. If you’re based in Sharjah, we can help you find the right mortgage deal without the usual headaches.
We know exactly which lenders are open to applications from the UAE and we’ll guide you through what paperwork you’ll need and how it all works – rest assured you’re in very safe hands!
Expat Mortgage in Ras Al Khaimah
Ras Al Khaimah’s laid-back pace and growing business scene have made it a popular option for British expats who want a different pace of life. But just because you’re a bit further out from Dubai doesn’t mean getting a mortgage in the UK is any trickier.
We’ve worked with British expats in Ras Al Khaimah looking to buy everything from UK holiday lets to long-term property investments. If you’re thinking about doing the same, we’ll talk you through what’s involved and help get your application moving.
Expat Mortgage in Fujairah
Fujairah might be a quieter emirate, but we know plenty of British expats there who are keen to keep their property investments alive back in the UK. If you’re living in Fujairah and looking to buy a residential or buy to let property in UK, we can help make it happen. We’ve got access to all the specialist lenders who understand the intricate expat market and can tailor mortgage deals to suit your personal situation and circumstances. No matter your plans, we’ll keep things simple, clear and hassle-free.
Mortgage Application Process
When you decide to either remortgage or buy property in the UK from the UAE, the mortgage application process involves several steps. Here we guide you through each step:
Initial consultation and whole-of-market search
The initial consultation will enable us to determine whether you are eligible or not and equally, what your mortgage affordability is. Following this, we then search across the whole market and deals available to determine the very best options available to you. The options are then presented to you, so that you can comfortably decide which option you feel most comfortable with you.
Collecting documents
You will need to provide the necessary documents, such as proof of income, UK credit history and overseas credit report etc. Also, you will need proof of capital for the deposit if you are buying a new property.
Lender selection and application
Once the most suitable lender has been selected, we then begin the application process for you which we will fully submit and manage on your behalf. Once the application has been submitted, there will also be a requirement for a valuation to be undertaken as well as a solicitor to be appointed – don’t worry – we can help you with all of this as well.
Approval and offer
Once the mortgage lender has approved your application, you will receive your formal “mortgage offer”. At this point, we will provide you with complete information about the final steps required.
Completion
In this step, all the legal and financial processes are finalised, after which you become the legal owner of your property.
Interested in finding out monthly mortgage costs and deposit needed? Try our Expat Mortgage Calculator UK today.
Why Choose Us?
When you think of buying a home in the UK while living in UAE, the first question that comes to mind is – where do I start?
From the paperwork required to the sourcing the specialist expat lenders, everything is a little different and harder since you’re not living in the UK. And so, you need someone who not only understands your circumstances and needs, but equally also will support you every step-of-the-way.
This is exactly what the Expat Mortgages UK Team specialises in! We truly understand the specific needs of British expats living in the UAE — from Dubai to Fujairah – and we will secure the best mortgage solutions for them.
Don’t worry – you don’t need to submit application or speak to the lenders – we literally handle everything for you! You save your precious time and reduce stress and will secure your expat mortgage much quicker and easier working with us.
Frequently Asked Questions (FAQs): Expat Mortgage from UAE
What are the tax implications of owning a UK property while living in UAE?
Buying a property in the UK is not a simple deal. Stamp duty is also required to be paid and income tax also has to be taken care of. Even if you are living in UAE, it is still necessary to follow the UK tax rules.
Do I need to have income in UK to get a UK mortgage?
No, you do not need to have income from UK. You can use income from the UAE or other countries.
Can I get a mortgage if I don’t have a UK credit history?
Yes absolutely, you can secure a mortgage from expat-friendly mortgage lenders who can accommodate all types of credit situations.
How will currency exchange affect my UK mortgage payment?
Currency exchange rates can affect your payment, causing payments to fluctuate.
Are there specialist lenders for expat mortgages?
Yes, absolutely – there are many specialist lenders for expats that offer tailored solutions to enable you to secure a UK mortgage.
Can I use rental income from UK property towards a mortgage?
You can use rental income towards mortgage payments, particularly in Buy-to-Let properties.
Will the terms of my mortgage change if I return to the UK?
If you return to the UK, mortgage terms may change, depending on your overall financial circumstances.
Are there any restrictions on the type of UK property expats can buy?
In most cases, expats can buy any property in the UK. There are some lenders who will specify certain conditions on the type of property and its location.
The benefit of working with an experienced and knowledgeable broker is they will ensure they only approach lenders they know will want to lend on your choice of property so there are NO nasty surprises downline!
Start Your Mortgage Journey Today!
The time has come to get a UK Expat Mortgage from the UAE! Start your journey today! We are always available to give you free consultations and quotes.
You can contact us anytime:
Call us on +44 1494 622 555
Email us at [email protected]
Our team is always ready to help you make the process smooth and stress-free.