International Expat Mortgages

If you’re an expat living overseas and wish to buy a property in the UK or purchase a home in the country you now work in the good news is that there may be many options available to you, even if your mortgage application has been declined in the past.

We work with many brokers who are specialists in both UK and international markets, so we can match you with an expert who can help you find your best options.

In the meantime, we’ve compiled this article to help you brush up on your facts as you search for your new home.

Can I get an international mortgage as a UK expat?

Getting an international expat mortgage is possible, though this depends on your circumstances and the country you currently reside in.

If you’re looking for an international mortgage in the UK, beginning with a previous mainstream lender based in the UK can make sense. However, while some lenders can provide international mortgages for UK ex-pats, the total number might be lower than expected.

It makes sense to speak to a mortgage advisor experienced in the international ex-pat mortgage market to ensure the process runs smoothly and you get the right product for your circumstances.

If you make an enquiry, we can arrange for one of the expat mortgage brokers we work with to contact you.

Is it possible to apply for a UK mortgage while working overseas?

Yes, it is. Many expats also find themselves in the situation of living and working overseas but wanting to buy a home in the UK. Mortgages for overseas workers are another product generally available from UK lenders.

Overseas workers may require a UK mortgage for investment purposes or for family reasons. Other circumstances include that they plan on moving back home in the near future and wish to have their own home ready to move into.

How can I get a UK mortgage if I’m working overseas?

Securing a UK mortgage while working overseas is possible, provided you speak with an experienced mortgage advisor. You will require specific documentation and details on your credit history.

Online Mortgage Advisor can connect you with a specialist broker who has the expert knowledge you need. Contact us today, and we’ll connect you with the right advisor.

How will my credit history affect my expat mortgage application?

A solid UK credit history can be essential for the information required for an international expat mortgage or a UK mortgage for expats working overseas.

That’s because lenders like to be sure of the following:

• The size and sustainability of your income
• The potential impact on your disposable income of fluctuating exchange rates
• Identifying and confirming your employer
• The higher risk of fraud when gaining information from overseas

How will my UK credit history affect my international expat mortgage application?

If an expat has a long-term and positive credit history in the UK, the possibility of securing a competitive international expat mortgage is strong. However, if your UK credit history contains adverse information or only covers a short period, there are fewer lenders willing to lend a UK mortgage to overseas workers.

For expats with little or no recent UK credit history, there are even fewer lenders who can help you, but they are out there. However, the mortgage advisors we put you in touch with have the experience to help you get the expat mortgage you require. If possible, they’ll help you secure the right product.

How do exchange rates work with an expat mortgage?

If you work overseas and are paid in your local currency, exchange rates will apply if you’re applying for a UK mortgage based on foreign income.

That’s because, from an affordability perspective, even a tiny change in the value of a currency may make your repayments unaffordable or a deposit too small overnight. Lenders will usually stress test your income to ensure that any significant change in exchange rates wouldn’t impact your ability to repay the mortgage.

Due to this, international expat mortgages and overseas workers’ UK mortgages tend to require larger deposits. This is also one reason that interest rates can be higher on these types of mortgages.

How much deposit do you need for international expat mortgages?

In many cases, lenders who provide international expat mortgages usually require a deposit of at least 25% of the property’s value. This is to mitigate the risks associated with details including:

• Lack of a long-term UK credit history.
• Uncertainty over your overseas employer.
• Your exact income.
• The sustainability of your earnings.
• Potential for fraud when gaining details from overseas.

How is affordability for overseas workers’ mortgages assessed?

Affordability is assessed by collating a variety of financial details, including:

• Income
• Sustainable earnings
• Outgoings
• Financial commitments
• Credit history

Where some of these details can’t be 100% verified, a lender of an international expat mortgage may charge a higher interest rate.

An expert mortgage advisor with experience in mortgages for overseas expat workers will be able to give you more information on this detail. They can also assist you in securing the best possible mortgage for your needs and circumstances.

Make an enquiry, and we’ll match you with an expert shortly.

Which countries can I get a mortgage as an expat?

In this section, we explore some of the most popular countries to live in as expats, and how likely you are to get a mortgage in each.

Spain

Getting expat mortgages for property purchases in Spain is a well-trodden path and there are a number of lenders who can provide possible mortgage products. However, while buying Spanish property is something that remains popular with UK expats, there is a lot to consider.

Among those details are:

• Spanish affordability rules can be strict.
• Spain’s capital gains tax is higher than the UK at the time of writing
• Transaction costs can be 10-15% of the property’s value.

International and Spanish lenders offer specific mortgages for expats living in Spain. Spanish residents are typically able to gain an 80% loan-to-value (LTV) mortgage; however, non-residents are often limited to an LTV of 60-70% of the property’s value.

Online Mortgage Advisor can connect you with an expert in expat mortgages for Spain, who will help you find the right product for your requirements and situation.

Australia

UK expats can get mortgages in Australia or as an investment. As with all international expat mortgages, there are specific rules for foreign resident purchasers and non-resident investments.

It’s possible to secure an Australian expat mortgage from an Australian mortgage lender or a UK-based one. In both cases, however, it’s advisable to secure the services of a specialist mortgage broker to help guide you through the rules and requirements attached to your overseas home purchase.

Expats living in Australia are typically able to borrow between 70% and 90% of the property’s value. Non-resident overseas buyers tend to be limited to a 75% maximum LTV on their Australian expat mortgage.

There are various ways to secure your Australian expat mortgage, but whichever option you choose, you’ll need approval from the Foreign Investment Review Board.

To help ensure you choose the right mortgage product and have all the documents and information you need, get in touch, and we’ll connect you with an expert in Australian mortgages for expats.

Dubai

Getting an expat mortgage for a property in Dubai is also possible for international buyers in the country.

In some ways, the Dubai mortgage market is similar to that of the UK in that:

• Getting a capital and interest repayment expat mortgage in Dubai is possible, but interest-only mortgages are not usually available to expats.
• Early repayment charges occur when a fixed-term mortgage is repaid early.
• Affordability is usually based on the customer’s overall financial profile

Loan-to-value levels for Dubai mortgages for expats vary depending on the type of mortgage you require. Where you plan to live in the property with your family, the maximum LTV on offer for expat mortgages in Dubai is 79.5%. For a non-resident, the maximum LTV is 75%, but you must have a clean profile with no liabilities back home to get that.

The highest possible LTV for buy-to-let mortgages is around the 80% level. That’s the same whether you’re a resident or non-resident of Dubai. In addition, if you’re interested in an expat mortgage for a commercial property in Dubai, the maximum LTV will likely be limited to 75%.

However, as with all secured loans, particularly international expat mortgages, you’ll have access to the best options for your specific requirements if you speak with a mortgage advisor with experience in the mortgage market for expats in Dubai.

USA

If you wish to buy a home in the USA, you’ll need a mortgage for expats in the US. This market is pretty large, and there are a variety of international mortgage types available to UK expats living and investing there.

Due to the choice of mortgage products for expat home buyers in the US, you’ll need to decide which type is right for you:

• A UK-based mortgage for your US purchase.
• A mortgage loan from a US bank.

Either option is possible whether you plan on buying a home in the US or an investment property.

LTVs are usually relatively low for foreign nationals; you could need a 30% deposit and upwards.

A wide variety of expat US mortgage options

As with all international expat mortgages, you’ll need to provide specific paperwork to secure your mortgage for your US home.

However, what you need depends on your unique situation:

• Are you a green card holder
• A non-permanent resident
• Buying a holiday home
• Making a BTL investment

The maximum LTV on your US expat mortgage will likely be capped at around 70% for all US states. It’s also important to note that while the details, deposit, and costs you’ll face will be similar from state to state, there will be some differences.

Due to the wide range of expat mortgage options in the US and the variety of purchaser circumstances that are recognised and catered for, it makes sense to speak with an expert advisor with experience in getting a US mortgage as an expat in most cases.

Contact us today, and we’ll connect you with an advisor with experience in the US expat mortgage market.

Netherlands

Getting an expat mortgage in the Netherlands tends to be a more straightforward process for residents of the country. While it is possible to get a mortgage as a non-resident, there are fewer options, and the requirements—and associated costs—are also larger.

There are two main types of mortgage available to expats buying a home in the Netherlands:

• A linear mortgage.
• Annuities mortgage.

A linear mortgage typically has fixed monthly repayments throughout the loan’s term. An annuities mortgage tends to have monthly repayments decrease over the term as interest payments fall in line with the overall debt owed.

France

Another popular destination for ex-pats looking for a mortgage, France has numerous expat mortgage options for UK buyers. However, while it shouldn’t be too difficult to find, you must be aware of the additional rules in place for non-French nationals.

First of all, the mortgage process in France can feel slow, even in comparison to the UK process, where property chains can make buying a home take a long time. In addition, mortgages for expats in France are assessed on a credit ratio basis rather than an income multiplier one.

Other details to be aware of when considering which French mortgage is right for your expat status are:

• Estate agency commission.
• Notaries fees.
• Essential repairs and renovations to the property.

Given the differences between French mortgages for expats and typical UK mortgage products, speaking with an advisor with experience securing mortgages for ex-pats in France is a good idea. Even if you only have an initial chat, you will gain a clearer idea of the French housing and mortgage market from an expat’s perspective.

Ireland

Despite the Bank of Ireland’s decision in 2018 to withdraw from this sector of the market, it is still possible to get an expat mortgage in the Republic of Ireland. Lenders who are still willing to lend to non-residents or overseas buyers tend to request deposits of between 20% and 30% of the property’s value.

You will have a choice of securing your Irish expat mortgage from a lender in the Republic of Ireland or a UK-based one. You may even be able to do a bit of both. The Royal Bank of Scotland Group, which also owns Natwest Bank, owns Ulster Bank, which has a presence in both the Republic of Ireland and Northern Ireland.

Differences include that some Irish lenders may request earnings in euros. Also of note is that, like many other European-based mortgage lenders, they prefer to calculate your mortgage affordability on a credit ratio basis rather than an income multiple.

Irish residents wishing to secure an international expat mortgage will find they have more options than those living overseas. However, both ways of proceeding are possible, depending on your unique circumstances and needs.

As with all international expat mortgages, a sensible first step is to speak with an expert in the area who can provide you with all the information you need to proceed with your plan.

Scotland

There are plenty of opportunities for expat landlords to purchase a property in Scotland. Many mortgage providers offer mortgages for Scottish properties on the same terms as those for England or Wales. Some UK banks even offer bespoke mortgages and financial products for internationally based individuals interested in purchasing Scottish property.

The mortgage brokers we work with can help source mortgages for expats looking to buy or refinance property in Edinburgh, Glasgow, Aberdeen, or anywhere else you may wish to set root in Scotland.

Get in touch, and we’ll connect you to an expert who can help you find your most attractive Scottish mortgage interest rates and loan terms.

Are there any other countries where I can get an expat mortgage?

The above-listed countries aren’t the only places where UK expats can get an international mortgage.

Many other countries are options for those wishing to buy a home overseas:

• Canada
• Northern Ireland 
• Singapore
• Hong Kong (but the market is tightly controlled)
• Thailand
• South Africa
• European countries, including Greece, Poland, Austria, Czech Republic, Portugal, Denmark, and many more
• Bahamas
• Gibraltar
• Sri Lanka (though restrictions likely)
• UAE, including Abu Dhabi (though restrictions are likely)
• Sweden
• Kenya (though the market is tightly controlled)
• Jersey
• Saudi Arabia (though restrictions apply)
• Qatar (though restrictions are likely)

Speak to an expat international mortgage advisor today!

If you have questions about getting an international expat mortgage and would like to speak to an expert to find out more, make an enquiry or give us a call on 0330 818 7026.

You can then relax and let us do all the hard work of finding the broker with the right experience for your specific needs.