Securing a UK buy to let mortgage when working or living abroad as a British passport holder can be challenging. Here, we look at the solutions available for landlords and the lending criteria you’ll have to meet to secure an expat mortgage.
Expat lending refers to British passport holders living abroad and looking to secure a mortgage in the UK. This applies whether you’re temporarily working abroad or permanently relocated, and there will be unique challenges for you to overcome when securing a mortgage.
As a whole-of-market mortgage broker, we have access to specialist lenders who accept expat landlords with tailored lending solutions.
In this blog, we look at:
- Who is eligible for an expat buy to let mortgage
- The lending criteria you’ll need to meet
- The property types that will be accepted
- How to get started
Expat lending – are you eligible?
Expats are often considered higher-risk borrowers, so meeting the eligibility requirements can be slightly more challenging.
One key factor lenders will look for is credit history. UK lenders require landlords to have an active credit profile, including a UK bank account. Without this, running credit checks and assessing the risk of your application is much more difficult.
Most lenders have a maximum loan to value of 75% and a minimum income of £25,000 to compensate for the added risk with these cases, although some lenders can consider less.
Like with a standard mortgage, lenders accept both employed and self-employed applicants, and the requirements remain the same for expats. For example:
- Employed applicants: Proof of income, bank statements or payslips, confirmation of employment contract length
- Self-employed applicants: Proof of income (through tax returns or accountant records) and a minimum of 2 years of records
Property types and investment opportunities
Lenders accept several different property types for expat borrowers, including:
- Standard buy to lets
In terms of borrowers, lenders accept individuals and Limited Companies, and some will accept first-time landlords.
How to get started
Navigating the expat mortgage market can be challenging, so it's recommended that you work with an expert broker (like us!).
Our whole-of-market access means we can work with the specialist lenders to find a competitive rate that suits your needs, whether you’re just starting your property investment journey or expanding your portfolio as an expat.
See what rates you could access by calling our team on 0345 345 6788 or submit an enquiry here.
