Are you finding it difficult to secure a mortgage as an expat? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.
Case Profile
Almost five million Brits1 live or work outside the UK and latest figures would suggest that more and more are choosing to keep – or purchase – a ‘bolthole’ back home. Year-on-year, demand for expat mortgages has grown by 30%2 but getting this type of mortgage is not always straightforward. There is a great deal of due diligence, and regulations have tightened with the FCA’s Mortgage Credit Directive meaning mortgage providers have to apply strict stress tests. However, working with a broker with access to the latest product knowledge and a strong network of lenders can make all the difference in finding the right solution for your needs.
We recently completed an expat, buy to let mortgage for a British client based abroad. He owns a home in the UK valued at around one million pounds and was looking for an interest only mortgage of £630,500. He had recently moved companies and started working for a new employer. Therefore he only had one pay slip as evidence of income. This meant he was discounted as an applicant from a number of lenders.
Solution
Our expert team of advisers found a lending solution offering the client a three year discounted product. This represented a 1.8% discount from the standard variable rate (SVR) of 4.75%, giving a pay rate of 2.95%. The lender was happy with the client’s income and rental income, both of which were strong, and our client was delighted with the outcome.
Deal Highlights
| Loan amount: | £630,000 |
| Rate: | 3 year discount rate of 2.95% |
| APRC: | Overall cost for comparison 4.60% APRC representative variable |
| LTV: | 65% |
| Term: | 25 years |
| Type: | Interest Only |
| Loan purpose: | Buy to Let Purchase |
| Lender’s arrangement fee: | None |
| Early repayment charge: | 3% of the outstanding loan amount in the first 3 years |
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Overall cost for comparison 4.6% APRC representative variable based on 36 payments at a discounted variable rate, currently 2.95%, followed by 240 payments at the lenders variable rate, currently 4.75%. Because all, or part of, the mortgage is currently, or will revert to, a variable interest rate mortgage, the actual APR could be different from this APR and the payments could increase, if the interest rate of the loan changes. For example, if the interest rate rose to 10.20%, the APRC could increase to 10.9%. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.
1 https://www.thisismoney.co.uk/money/buytolet/article-4745780/How-buy-let-mortgage-UK-expat.html
2 https://www.mortgagestrategy.co.uk/btl-watch-home-thoughts-abroad/
