For many people, living abroad is their perfect scenario. When you are young, you can enjoy an interesting career while enjoying a cultural experience.
When you are in your golden years, living abroad provides you with a chance to relax in better weather and a laidback environment.
No matter the scenario you are considering or living through, you should be aware that moving abroad will impact your finances with respect to mortgaged property at home. This guide aims to help you be fully informed when it comes to managing your mortgage if you live, or have decided to move, abroad.
What is an expat?
An expat, or an expatriate, is a UK citizen who moves abroad to live. There are many different scenarios for expats, including owning or not owning property in the UK and hold a range of employment statuses.
It is important to be aware that there are some challenges with respect to property finance for expats.
Can I get an expat mortgage?
It should be noted that many of the best-known mortgage lenders in the country will not approve expat mortgage applications. However, there are some lenders who will.
There are many reasons why a lot of High Street lenders will not provide a mortgage to expats, including the difficulties in carrying out credit checks or the currency fluctuations and transfer costs. Another reason is that most expats don’t pay income tax in the UK and this is a requirement for many UK domestic lenders.
If you are an expat with property in the UK, it is advisable to speak with a specialist tax adviser to determine your circumstances. If you are looking to obtain an expat mortgage, be aware that you will likely face a higher rate of interest due to the higher level of risk associated with lending to expats.
What can expats do to increase their chances of obtaining a mortgage?
Initially, it is best to speak with a mortgage broker to see what options they provide you with and whether you can put you in contact with any specialist who is likely to offer a suitable mortgage.
It is also vital that expats retain a dependable credit rating in the United Kingdom. If you have credit cards or bank accounts in the UK, it is recommended to keep them open and if possible, retaining a UK address will help considerably.
Get in touch for help
We are always happy to provide guidance for expats looking for clarity and tailored advice. We have a skilled and experienced team on hand who will help you make an informed decision. We can also connect you with professionals who offer a dependable expat service, including mortgages, family trusts, offshore investments and many other financial accounts.
Whenever you need advice or guidance, get in touch and we will do our best to assist you.