Head of Content
Mortgage Advisor & Director
Can I get a mortgage as a UK citizen living abroad?
Yes. It is possible to get a mortgage as a UK citizen living abroad, although there are a few more hoops to jump through.
Our experienced team of advisors have helped many UK citizens living abroad to get the best deal possible on their mortgage in the UK. We have access to lenders who specialise in these types of mortgages and are used to dealing with the specific challenges you face.
Why can it be more of a challenge?
As an expat, lenders will perceive you as a higher-risk borrower.
Living abroad means you may not have been able to build up a solid credit history in the UK, and your salary is likely to be paid in foreign currency into a non-UK bank account. Exchange rate fluctuations only add to the risk for mortgage providers, who may also struggle to identify your employer abroad. Some lenders will not consider your application, while others will look to compensate by offering higher interest rates and requiring a higher deposit.
If you need to remortgage your UK home
If you have kept your home in the UK, whether you are planning a return or not, you will probably need to arrange a remortgage at some point. Your lender will be interested in whether your property is fully insured; make sure to review your terms concerning how long your property can be left empty.
If you are seeking to let your property out, your lender should allow you a 'consent to let' on your existing mortgage.
What about investing in the UK?
As an expat, you may be looking to invest in the UK property market.
The UK is an excellent option for property investment, particularly if you haven't already bought a property in the country where you are living.
The UK rental market is buoyant, you may have family in the UK who can keep an eye on the property, and you know you have a base in the UK should you wish to return.
A few tips for expats:
There are a few actions you can take to increase your chances of getting the best rate possible on your expat mortgage:
- If you are a business owner overseas, get your business accounts verified by UK-based accountants.
- Lenders will like you to have family nearby to keep an eye on an empty property.
- Assume a lower income for affordability calculations - lenders can take off up to 25% to account for currency fluctuations.
- For remortgages - check your insurance policy to see how long your house can be left unattended.
- Expect to go through additional identity checks.
- Don't compare the rates your UK based peers are getting on their mortgage - expat rates are generally >1.5% higher.
- You may need to meet your lender face to face, so expect a trip back to the UK.
Where can I find help?
As a whole-of-market mortgage advisor, our team at Teito can help you get started with securing a mortgage as an expat. Get in touch today to begin the process.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
