UK Mortgage Finance

UK Mortgage Finance

Trying to source a mortgage in a country that you do not currently reside in, can seem very complex. Here at International Property Finance Group (IPFG) will provide the best lending options for you and your circumstances. If you are looking for a residential mortgage, buy to let, holiday let or a short term loan we can help advise. The main compliant we hear, is clients have been to their own bank and the bank confirms that no lending is available or their friend/s may tell you that it is difficult or it simply cannot be done.

Just because one bank says No, does not mean all banks will turn you down for a loan. Each bank will have their own criteria so it is important that you speak to an expert that understands each banks conditions.

When listening to friends, the likeliness is, your friend is not the expert and your circumstances are often very different from theirs.

There are many reasons that a bank will be more cautious when lending to an expat. This is mainly due to the difficulty in following procedures that guarantee the borrower’s financial stability when they have been living abroad for potentially very long time or never actually living in the country that they are borrowing in.

If a mortgage provider sees a certain kind of customer as higher risk then they will either refuse them a loan altogether, or offer higher interest to offset said risk.

As an expat, you might find it slightly harder to get a mortgage and may pay a little more on the interest rates.

Overseas Income and Credit Rating

If your primary income is earned overseas, then this may present a problem for the lender on various levels. The bank will look at the sustainability of your income, as well as its actual size, and these are harder to ascertain, also taking into account fluctuating exchange rates. The mortgage provider will have more difficulty in actually identifying your employer, if the employer is not internationally recognised and based abroad.

The difficulty in obtaining all of the relevant information, coupled with the risk of fraud, leads to many mortgage lenders to flat out refuse expats, or to at least charge higher rates to those that they do lend to.

It’s a similar story when it comes to credit ratings. Your credit history is important to a mortgage lender as it allows them to see how viable a candidate you are for borrowing money. If you’ve lived abroad for a relatively long time, then your credit history might not be traceable at all. This does not necessarily make you a bad candidate to lend to, but it does make you an unknown quantity and this leads lenders to err on the side of caution.

Can Expats Get Buy to Let Mortgages?

The demand for expats to take out buy to let mortgages and capitalise on the rental market in the UK has grown steadily in recent years. Providers of buy to let mortgages often require relatively high deposits, reflecting the increased uncertainty of income from rent. Taking into account all of the above, expats and foreign investors who require a buy to let mortgage can expect to come up with more money up front as a deposit.

This shouldn’t put you off. If you’re set on purchasing a UK property to rent out, just make sure you shop around online to get the best deals. Whether you’re looking for a buy to let mortgage or a residential mortgage, as an expat or foreign purchaser, please get in touch and we will advise you of the best solution.

Need a bank account in the UK? We can help. Please ask for more details.

Buying in the UK?

Are you an expat or a foreign investor looking for mortgage financing in the UK? Click on the button below to get a step by step guide to buying property in the UK.

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
Enter a value
Down payment
Down payment is cash that you pay upfront for your home.
0.0%
Enter a value
Term in years
Number of years you have to pay.
years
Enter a value
Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
Enter a value
Property tax
Enter your property tax here if you know it.
per year
Enter a value
Home insurance
Most lenders require home insurance. Enter its price here.
per year
Enter a value
PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
Enter a value

Your total monthly payment

£


Principal & Interest: £
Interest Only Amount: £

How Much Can I Borrow?

Why not discuss with a UK lending Expert? Complete the form and one of our dedicated UK advisors will contact you to discuss your options.

Disclaimer

Your property may be repossessed if you do not keep up your repayments on your mortgage. A fee will be payable for arranging your mortgage. Your dedicated IPFG Consultant will confirm the amount as this differs from country to country, this will be agreed before you choose to proceed.