Over recent years, it’s become increasingly difficult to get a buy-to-let mortgage in the UK if you don’t live in the country.
However, it is doable, with a small number of lenders offering expat buy-to-let mortgages.
Who needs expat mortgages and what are the typical reasons?
If you’re looking to invest in buy-to-let property whilst living abroad, varying exchange rates can provide good opportunities to do so.
Many expats end up earning more money abroad than would do so in this country which also means that, with the lower cost of living, you would end up having more disposable income to invest.
Why is it so difficult to get an expat mortgage?
After new European rules were introduced, if you are paid in foreign currency and apply for any expat mortgage, you will come under closer scrutiny to ensure that lenders are comfortable that you will be able to afford the mortgage.
What if I want to purchase a buy-to-let property in the UK and let it out?
Buy-to-let mortgages are a little easier to get for expats, with new lenders entering the market over recent years.
When assessing your affordability, the lender will take your earned income into consideration, and you will need a minimum of 25% deposit, whilst ensuring that the rental income cover 125% of the mortgage repayment cost.
However, there are lenders out there that will consider applicants that are going to see a rental shortfall, as long as you are paid in a currency from their approved currency list.
For further information on how you could get a buy-to-let mortgage whilst you live abroad, or if you want any other form of expat mortgage, speak to one of our expert advisers who will be able to help you with the next steps.