What is an Expat Mortgage?
If you’re an expat looking to buy a property you might have questions on whether you can get a UK mortgage as an expat and who offers expat mortgages?
Whether you’ve been working abroad or taken a career break, when you’re planning to return home it is possible to get a mortgage though it can be complicated.
An expat mortgage put simply is a mortgage product that is specifically tailored to borrowers who are living overseas.
How does an expat mortgage work?
In the same way as a ‘normal’ residential mortgage would work, but with more stringent checks.
Generally, when lenders assess a mortgage application they will look at your income and your credit file. Being an expat moving back to the UK there can therefore be a few stumbling blocks.
Why? Because lenders like to be certain of a few details:
- Your source of income from work abroad is stable and the size of it, or you have work lined up in the UK on your return.
- The identity of your employer and it’s traceability.
- Any impact the exchange rate fluctuation has on your disposable income.
- Having credit history within the UK as your credit history may not be otherwise traceable.
For these reasons’ lenders see expat mortgages as high risk.
How much deposit do I need for an expat mortgage?
As with a lot of high risk borrowing, having a big deposit can help. The deposit you’ll need is usually around 25%. This could also help with better rates.
When looking for an expat mortgage you need specialist lenders who are a little more flexible. Seeking the advice and help of a whole-of-market broker or advisor who specialises in this area is paramount to getting a mortgage approval with the right lender for you.