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A Complete Guide to Ex-pat Mortgages

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A Complete Guide to Ex-pat Mortgages

Professional guidance is essential if you're a British ex-pat looking to buy a home back home or obtain a mortgage in the country where you've gone. Expats are not accepted by all mortgage lenders, and those who do are known to raise their rates.

To dispel any misconceptions about ex-pat mortgages, we've put together this information. You'll learn how ex-pat mortgages operate, how much of a deposit you'll need, how much you could borrow, and more here.

How Do Expat Mortgages Work?
An ex-pat mortgage is a type of loan designed for people who live abroad and desire to buy a home in their home country or in the country where they now live. They can be more difficult to get than traditional residential mortgages, as some lenders view these transactions as riskier.

They function just like a regular mortgage, with the exception that some of the mortgage lender's checks and qualifying requirements may be more strict due to the perceived increased risk associated with ex-pat lending.

If you're applying for an ex-pat mortgage, professional guidance from a specialist broker is suggested because they can increase your chances of approval and help you receive the greatest interest rate. They'll even assist you with paperwork if you need it.

How Do I Obtain a Mortgage As An Expat?
Your first step should be to choose a mortgage broker who specializes in ex-pat mortgages, as they will be able to walk you through each step of the process and provide personalized guidance. We provide a free broker matching service that will match you with the appropriate mortgage advisor based on your needs and circumstances.

Purchasing a Home in the United Kingdom from Outside the Country
It is feasible to get a UK mortgage for an overseas property (in some circumstances), but there are a few requirements that aren't the same as getting a regular mortgage in the UK. You will require the following:
1. Evidence of employment in the United Kingdom (preferably a contract)
2. If you're self-employed, you'll need proof of earnings from a reputable accountant.
3. Have a credit history that is free of errors (more on that later)
4. A mortgage term that does not exceed 70 years.

Most lenders prefer ex-pat purchasers to have a UK bank account, and some even require it.

Expats Returning to the UK Can Get a Mortgage.
Most lenders will not lend to customers who have not had a fixed address in the UK for the previous three years, making it difficult for returning ex-pats to obtain a mortgage in the UK. Because they are living abroad, it may be tough to track their credit history. If you have the luxury of being able to plan, there are things you can do to boost your chances of acquiring a mortgage when you return to the UK. Among them are:

1. Keep a UK correspondence address: This could be your parents, a family member's, or a close friend's address.
2. Save more money for a deposit: Having more money for a deposit can help to mitigate the risk posed by your ex-pat status. In the next section of this post, you'll learn more about ex-pat mortgage deposit requirements.
3. Maintain a credit history in the United Kingdom: Using an overseas credit card issued by a UK provider or maintaining a UK bank account from afar are two options.

Are you looking for a job in the United Kingdom? Having a job set up in the UK when you return would undoubtedly improve your chances of obtaining a mortgage, though you may need to put in some time with your employer before applying. Some lenders want a six-month work history, while others just require three.

Eligibility Criteria
Expats have various requirements when it comes to acquiring or remortgaging a home. Expats have a credit history that can be traced, thus remortgaging is a little easier for them. The following are the main challenges that ex-pats in the UK face while applying for mortgages:

Credit history
If you've been out of the country for a while, UK lenders may find it difficult to track down your credit history. Our knowledgeable brokers know which speciality lenders could be prepared to lend to those with bad credit.

Lenders consider persons who make their money outside of the UK to be a higher risk and may reject an application if proof of income is difficult to come by.

If you have a job, lenders prefer candidates who work for a well-known multinational corporation (although this is not essential)

If necessary, pay stubs and other forms of proof of income must be translated into English.

Some lenders may demand that you deposit your earnings into a UK bank account.

If you're self-employed, a globally recognized accountant is required.

The standard criteria for self-employment may apply.

  Apr 06, 2022       by eguaogie-eghosa       521 Views

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