Expat Buy to Let Mortgages
Buying an overseas property as a UK expat
If you’re interested in buying an overseas property as a UK expat, but don’t wish to reside in it, then you’ll need a buy to let mortgage. This type of mortgage is perfect for those who are looking for an investment, whether for capital appreciation, rental yield, or both.
For a buy to let expat mortgage, you typically need a higher deposit for our dedicated expat mortgage team to find you the best mortgage rates.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Is an expat buy to let mortgage for me?
If you’re unsure if an expat buy to let mortgage is for you, our expert team are on hand. Before we can begin discussing a mortgage deal, one of our expat mortgage brokers will run through your personal circumstances and property wishes, which can include questions such as:
- Is the purchase long-term or short-term?
- Is the property for capital appreciation or rental income?
- What type of property are you buying?
From this, we then go on to perform a fact find to gain a detailed understanding of your situation to better advise you on expat mortgages, such as buy to let, and your next steps.
How do buy to let mortgages work for expats?
When it comes to choosing your expat buy to let mortgage, you can choose between paying off either capital and interest, or interest only.
What are the differences between interest only and capital repayment?
- Interest only mortgages usually have lower monthly payments, but you’ll only be paying the interest on the loan each month, not the capital.
- Capital repayment usually have higher monthly payments, but you’ll be paying off both the interest and capital each month.
Your mortgage broker can discuss the differences with you in detail, suggesting options which will suit your needs best.
What is the affordability criteria for a buy to let expatriate mortgage?
While similar to residential mortgages, there are different costs to consider when acquiring a buy to let UK expat mortgage, such as:
- A deposit of at least 25% (on property value).
- Interest rates on buy to let properties can be higher.
- Funds for management of the property.
- Additional costs such as landlord insurance and ground rent.
- Service charges on property maintenance.
When we begin the consultation, your assigned expat mortgage broker will discuss what matters the most to you. Helping them to cater their searches for UK expat mortgages that meet your needs and expectations.
Process of acquiring a UK residential property
1. Speak with our advisers
Begin your journey by getting in touch with our expert mortgage team who will be able to answer any questions, discuss your options and provide possible next steps.
2. Get an agreement in principle
Our friendly advisers will apply for your Agreement in Principle (AIP), which is where our great relationship with lenders comes in. Your AIP is an indication that the lender will allow you to borrow the specified amount, based on the condition all submitted information is correct. Once you have this, you can begin property hunting and put an offer on the property you wish to purchase.
3. Assign us as your mortgage brokers & choose a conveyancer
Once your offer is accepted, we will support you with your mortgage application and liaise between the lender and you. The lender will now assess your application and arrange a valuation of your property.
4. Receive your mortgage offer
If your lender is happy, they will send both us and you an approved mortgage offer. Your chosen conveyancer will now complete any required legal work. You should look to speak with us at this stage about protection planning, and buildings and contents insurance, so it’s all in place at the point of exchange.
5. Exchange and completion
If you’re re-mortgaging, your conveyancer will confirm a date when the funds will be drawn. If you’re purchasing a property, when contracts have been exchanged, you are then legally tied to the purchase of the property. A date will be agreed upon for you to complete and collect the keys—a congratulations is also in order.
Why Fidelius Mortgages?
Fidelius Mortgages are an independent, experienced, yet forward thinking Financial Services company, committed to providing the very best advice through our top-quality team.
With a combined experience of nearly two decades, our expert mortgage team average over 300 mortgages per year for expatriate clients and create bespoke insurance solutions. We’ve always specialised in expat mortgages.
Being independent allows us to source the best lender options, and we also have professional connections with partner solicitors who are experienced in assisting expats buying property in the UK.
Fidelius Mortgages believe in establishing a lifelong commitment to our customers with a service that is cost effective, valuable, and able to deliver total peace of mind. From our support teams, right up to management, we pride ourselves on having the correct work ethos and culture needed to provide excellent customer experience.
FAQs
Can I live in my buy to let property?
You are not able to live in your own buy to let property, as this mortgage is designed for landlords. You’ll need a standard mortgage for a home if you want to live in the property.
How do I find the best expat buy to let mortgage rates?
With so many mortgage costs to consider, knowing how to get a low mortgage rate is made easier with having a traceable credit score and UK bank account. Having a deposit of at least 25% will also put you in a good position.
Can I change my residential mortgage to a buy to let?
You can re-mortgage your residential mortgage into a buy to let mortgage, but be aware this will depend on several factors such as property type, personal circumstances, and the conditions of your previous mortgage. It’s worth being aware your interest rate may increase, but a member of our team can go through this with you.
Are buy to let mortgages more expensive?
Compared to residential mortgages, they are typically more expensive as they have more associated costs with them. You can also expect to put a larger deposit down, of at least 25% LTV and an increased stamp tax too.
What are acceptable deposit sources for an expat buy to let mortgage?
Typically, it makes it easier if you have your own deposit from your own sources, such as savings in account, investments, sale of property or equity in another property. It can be possible to find a lender that will consider a gifted deposit from a relative or friend.
What is the difference between regulated and unregulated mortgages?
A property you are residing in will have a regulated mortgage, where you can become an ‘accidental landlord’ if you (with your lenders permission) rent out your property. An unregulated mortgage is a mortgage on a property you aren’t going to live in.
Our complete guide to buy to let mortgages
If you’re looking to invest in property, we know it can be difficult to know where to start. Our guide will break down everything there is to know about buy to let mortgages, including deposits and what costs to consider.
Benefits of using an expat mortgage broker
If you’re an expat looking to purchase or remortgage a property in the UK, you may be wondering whether to use an expat mortgage broker to secure your expat mortgage, or go directly to the lenders.
What costs should you consider when buying an expat property?
Buying a property overseas and securing an expat mortgage can be a daunting process. With many things to consider, including expat mortgage rates, conveyancing costs and the costs of running a home.
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