UK Mortgages for Expats
We can help British expats to secure a mortgage on a UK property. Contact us today to speak with our experienced expat broker team.
Bespoke UK Expat Mortgage Advice
Dolphin Finance is an independent, whole-of-market mortgage broker, specialising in UK expat mortgage advice to a global client base. We can provide mortgage advice on the entire range of mortgage and property financing products available in the UK.
We specialise in a broad range of mortgage lending to expat clients, from more straightforward mainstream mortgages to high-value complex and specialist property finance in both the residential and commercial space.
Whether you are a landlord looking for a specialist buy-to-let mortgage, a first time buyer or a developer looking for property development finance, you will benefit from our extensive market knowledge and unrivalled professional service.
Our team of experienced advisers will provide expert mortgage advice tailored to your specific circumstances. Whatever your property financing requirements, contact us today for a free initial consultation.
How can we help Expats get a UK Mortgage?
Dolphin Finance has extensive experience in helping UK expats obtain a mortgage to purchase or refinance their existing property.
We can advise clients with the following types of mortgages and scenarios:
- Residential mortgage for a UK expat living overseas
- Remortgage of an existing property
- Expat buy to let mortgage
- Mortgage for an expat currently living abroad who is planning to return to the UK
Dolphin Finance is a mortgage broker which specialises in securing finance for expats and foreign nationals across the globe.
An initial 15-minute consultation with one of our brokers will enable us to determine your position and present you with a range of detailed options to consider, with no obligation.
Applying for a UK mortgage for an expat living overseas can be a challenging and daunting prospect. As an expat, your choice of lenders will be more limited, as many major banks and lenders will not consider applications from non-UK residents or foreign nationals.
However, much will depend on your personal circumstances, and we maintain an extensive network of relationships with specialist lenders and private banks who have a lot of experience in more complex cases.
Why use Dolphin Finance for your Expat Mortgage?
Dolphin Finance understand that buying a property in the UK can be a complicated and challenging process for an expat or foreign national, especially if you live in a different time zone.
Whether you are an expat living in Singapore looking to buy an investment property in the UK, or to refinance an existing property, we will guide you through the mortgage financing process.
Dolphin Finance are one of the leading independent expat mortgage brokers, and our team is ready to help you at every stage of the property financing process, wherever you may be located.
We don´t work a typical 9 to 5. Our expat broker team are experienced expats themselves and understand the challenges and needs of good communication throughout the mortgage application process.
Our goal is to find the right mortgage for your particular needs and requirements, and to be by your side from the start to finish.
Contact us today for a free initial consultation.
What is the Process to apply for a UK Expat Mortgage if I’m living Overseas?
Step 1.
Enquire online via our website - you can either call or email us, or arrange a callback at a time convenient for you.
Step 2.
Initial consultation - after a thorough understanding of your needs, we will find the perfect mortgage for you.
Step 3.
We'll arrange all of the paperwork for you - we will work efficiently and proactively all the way to completion.
Applying for a UK mortgage as an expat living abroad can be a challenging and daunting prospect. As an expat, your choice of lenders will be more limited, as many major banks and lenders will not consider applications from non-UK residents or foreign nationals.
This is where Dolphin Finance comes in. We are a leading independent expat mortgage broker, and our team is ready to help you at every stage of the property financing process, wherever you may be located. All of our mortgage advisers are CeMAP qualified, with experience of advising expats obtain financing for their UK property.
Whether you are a British expat living and working abroad, or a foreign national looking to purchase a property in the UK, our goal is to help you to obtain a mortgage that is right for you.
UK Expat Mortgage Guide
If you are looking for a UK expat mortgage, then you need to understand their unique features compared with a regular mortgage. With more and more people choosing to work overseas, expat mortgages are becoming increasingly common.
However, there are some significant differences to regular mortgage products. This comprehensive guide will set out all of the essential details you will need to know if you are looking to apply for a mortgage as an expat.
We will cover how the mortgage application works, lender criteria, eligibility, deposit requirements, interest rates, what documents you will need, and how to find the right expat mortgage for your situation.
Keep reading for a complete guide on UK expat mortgages, or click one of the links on the right to go directly to the relevant section.
What is an Expat Mortgage?
An expat mortgage is a type of mortgage product specifically designed for British expats wishing to purchase property back home in the UK. There are a number of differences between applying for a mortgage as a UK non-resident, and many lenders will not consider applications from expats living abroad.
However, in recent years, a number of specialist lenders have entered the market to cater for this specific group, and today expat borrowers have a wider variety of choice. Dolphin Finance is a specialist UK expat mortgage broker who can find the right mortgage for your situation, wherever you may live.
How much can I Borrow as an Expat?
The maximum amount that you can borrow on an expat mortgage will depend from lender to lender, and on your individual circumstances (based on your application using the lending criteria set out above).
Most lenders will make you a mortgage offer based on an income multiple. These multiples will generally be between 4 and 5 times income, but some expat mortgage lenders will have stricter rules for expats and limit your borrowing to 3 times income.
In addition, there will be an affordability assessment carried out by the lender, to ensure that the borrower is in a position to make the mortgage repayments.
Due to the unique nature of expat mortgages, the best way to find the best mortgage for your circumstances is to speak with a specialist expat mortgage broker.
Lending Criteria for UK Expat Mortgages
The main criteria that expats need to be aware of when applying for a UK expat mortgage are as follows:
Loan-to-value (‘LTV’) ratio
The maximum LTV ratios are generally lower for expat mortgages, with most lenders setting a maximum cap of 75% LTV. This means that a borrower will need to put down a 25% deposit of the property. Some lenders will also offer reduced LTVs for mortgages above a certain amount.
Country of residence
Where you live can affect your expat mortgage application, with many lenders preferring applications from residents of countries offering political and financial stability. Most lenders will have lists of ‘acceptable’ and ‘unacceptable’ countries they will accept expat mortgage applications from.
Currency
Whilst expat lenders will accept applications from expats earning a salary in a currency other than sterling, they will often restrict the currencies they will accept. Stable currencies such as euro and US Dollar are generally accepted by expat lenders. However even for these currencies, lenders will often apply a ‘haircut’ to reflect the risk of fluctuating exchange rates affecting the affordability of the mortgage repayments.
Employment
Some lenders will only accept applications from expats who are in full time employment, although some will accept self-employed expat borrowers, provided their accounts are prepared and signed off by an internationally recognised accounting firm.
Bank account
It is often a requirement that you have an existing UK bank account when you apply for an expat mortgage. It is highly recommended to keep your existing UK bank account when moving overseas, or open one in anticipation of applying for a mortgage.
Credit history
Most lenders will still require a credit history for borrowers, notwithstanding that they are not resident in the UK. For this reason, it is advisable to keep some ties to the UK, such as being on the electoral roll, keeping a mobile phone contract, credit card and bank account in the UK. Specialist expat lenders will take into account that an expat will have a reduced footprint compared to a UK resident borrower when assessing their application.
Every lender has their own specific lending criteria when it comes to UK expat mortgage applications. This is why it is crucial to work with a specialist expat mortgage broker, who will be able to advise you on the most appropriate lender and product for your particular circumstances.
Deposit requirements for an Expat Mortgage
One of the differences with an expat mortgage is that lenders will generally require that you put down a larger deposit. A bigger deposit will reduce your loan to value ratio and reduce the borrowing amount and monthly repayments.
Another key difference is that lenders will often impose stricter requirements and request more information as to where the funds for the deposit originated. The reason for these stricter rules because of the additional potential risk of money laundering from lending to UK expats, or those who are returning (or have recently returned) to the UK from overseas.
Therefore, in order to satisfy international anti-money laundering regulations, borrowers will need to provide documentation as to the origin of the funds. Common sources of deposits will include:
Savings accounts
These will ideally be from a UK based bank. However, lenders will appreciate that if you are working abroad and earning a salary in a different currency, that this will not always be possible, and so lenders will also consider accounts from other countries.
Investment portfolio
Lenders will generally accept a deposit from liquidating investments owned by the borrower, including stocks, shares, bonds, investment funds and other investment assets such as gold.
However, as with the case of savings accounts, the borrower will need to demonstrate further the source of funds for these investments. You will therefore need to evidence a paper trail, from how you came by the funds to make the investments in the first place.
Sale of an existing property
Lenders will also accept using funds from releasing equity in or remortgaging an existing property.
Inheritance
Using funds from an inheritance is a popular source of a deposit for mortgages. Lenders will need to see proof that the funds were received through the appropriate probate channels.
Gifted deposit
Some expat lenders will accept a gifted deposit from a relative, but very few will accept a deposit in this way from other third parties.
Providing a simple bank statement with the balance will not be sufficient in these circumstances. The lender will want to know exactly how you came to have these funds, for example from an inheritance, or savings from your income. For example, if the funds came from saving money from your income, they will want to see deposits of your salary into the same bank account, so that they verify that the savings accumulated over time.
Tips to Improve your credit score when applying for a UK Expat Mortgage
Expats will sometimes have worked abroad for many years, and as a result, may not have a credit history in the UK. However, the good news is that it is not an essential requirement to have a credit score in order to obtain a UK expat mortgage.
However, you may be able to secure an expat mortgage on better terms if you do have some form of credit history in the UK. In addition, some lenders will still insist on a UK credit history, and so without one, your options will be more limited.
Expat lenders may be able to offer lower interest rates, more flexible terms, and lower arrangement fees if the borrower has a good credit history in the UK.
Fortunately, there are several ways that an expat borrower can obtain, and improve their credit score whilst living and working overseas, in anticipation of later applying for a UK mortgage. Here are some tips for maintaining a improving your credit score whilst living abroad as an expat:
Keep a UK address
One easy way to improve your credit score as an expat is to maintain a UK address for your banking correspondence. This will enable an expat lender to apply for a credit score for your mortgage application, which will in turn enable them to offer you a wider selection of mortgage products.
If you don´t have a current UK address, or if your bank is sending your statements to your home overseas, then request that your bank sends all correspondence to an address in the UK (your parents’ home, or another relative).
Maintain a UK credit history whilst abroad
A credit history cannot be transferred from one country to another. So even if you have a great credit history overseas, this will not count for anything when it comes to applying for an expat mortgage in the UK. As a result, when a lender assesses your expat mortgage application, it won´t show any credit history, and, depending on the lender, your application could be refused.
One way around this is to maintain a UK credit history. This can be achieved simply by using your UK credit history whilst you are abroad, and keeping your UK bank accounts open.
Keep your name on a bill and register to vote
If possible, keep your name on an electricity or water bill, or on your internet or mobile phone contract if you own an existing property if you are looking for an expat remortgage. If possible, also maintain your voter registration. This will show lenders that you are paying your bills on time and have retained a connection to the UK, which will in turn improve your credit score as an expat.
If you are overseas and do not own property, then these options may not be available. However, if you are a returning expat, then it is advisable to ensure that all utility bills are in your name, and to register to vote as soon as you return to the UK, in order to build up a good credit history as soon as possible.
Obtain a copy of your credit file
It is always a good idea to obtain a copy of your credit file in order to anticipate any potential problems with your credit history as an expat. This can be done quickly and cheaply through major companies such as Experian or Equifax.
Your credit file will flag any potential problems, such as late payments. These are quite common with expats, who may not have received a bill as a result of being abroad, or an oversight of the bank or utility company, for example.
By anticipating any potential issues, so are in a better position to remedy any problems before making your expat mortgage application. In addition, armed with this credit file and information, your expat mortgage broker will be better placed to advise you on the best way to improve your credit history.
Lenders for UK Expat Mortgages
Because of the specialised nature of expat mortgages, there are fewer lenders and banks who are willing to offer these products. Mortgages to non-UK residents are perceived as significantly higher risk than to UK residents, and as a result, there are fewer providers to choose from. In addition, each expat lender will have their own very specific lending criteria.
However, as more people leave the UK to live and work, there are an increasing number of lenders who are entering the market. This is great news for expats, who have more products to choose from.
Dolphin Finance has access to specialist expat lenders and private banks who can provide UK expats and international clients with bespoke solutions to secure financing for their property purchase.
Expat Mortgages FAQs
A UK expat mortgage is a type of mortgage designed for British citizens who are currently living abroad but wish to purchase or refinance a property in the UK.
Typically, UK expat mortgages are offered to British citizens who are living abroad. However, there are lenders will consider applications from non-UK citizens. This will depend on which country the applicant is a citizen of, the strength of the connection they have to the UK, and whether they have previously) or currently lived in the UK.
The deposit requirements for expat mortgages tend to be more stringent, with most lenders requiring at least a 25% deposit.
If you have a limited credit history this can be a challenge in securing an expat mortgage, but it doesn’t necessarily mean you cannot secure funding. Some lenders specialise in the expat market, and will be willing to consider other factors, such as employment history, income, and financial stability in order to assess your creditworthiness.
Interest rates for UK expat mortgages will vary in much the same way as rates for UK resident mortgages do. For instance, the rate offered by the lender will depend on the loan-to-value ratio, your credit history, and the prevailing market conditions. As a rule, expat mortgages may have slightly higher interest rates compared to standard residential mortgages due to perceived higher risks associated with lending to expats who are not resident in the UK.
This will depend on the type of expat mortgage you have applied for. If you have a buy to let mortgage, then you will be permitted to rent out the property. If you or your family intend to spend some of the time living there, you will need to apply for a residential expat mortgage.
Yes, it is possible to apply for a UK expat mortgage if you are self-employed. However, most expat lenders will require that you are in full time employment overseas.
Yes, as an expat, you can remortgage your existing UK property. Remortgaging your existing property can be used to lock-in to a better interest rate, or to release funds from the existing equity in your home.
To find the best UK expat mortgage deal for your specific circumstances, it is advisable to seek advice from a specialist mortgage broker. Dolphin Finance has access to over 30 expat lenders and can help you find suitable options based on your circumstances. Most mortgage comparison websites do not cater to UK non-residents, and so you will need the help of a specialist broker to access the whole of the market.
Specialist expat mortgage advice wherever you may be based.
We advise clients based all over the world, and available 24/7, 7 days a week to help expats finance and refinance properties in the UK.
As leading expat mortgage advisers, we will find the right expat mortgage for your specific needs and circumstances.
