There are plenty of different scenarios to navigate when looking to invest in the UK property market as an expat living in Abu-Dhabi, but fortunately our expert advisers can help you do just that.
Why does living in Abu-Dhabi create problems?
If you’re living in Abu-Dhabi, you will be earning money in dirhams (AED) or another foreign currency, other than GBP.
You also may be using an accountant based in Abu-Dhabi, if you’re self employed.
These do create problems, but our expert advisers can negotiate these for you.
When should I apply?
Just like when in the UK, lenders look at your employment history to decide whether you are eligible for a mortgage.
if you’ve just switched roles, lenders may be hesitant to lend to you as you may have a probationary period to complete, for example.
What should I do before applying?
Again, just as if you were a UK resident, you should apply for an expat mortgage first, before looking at properties.
This way, you’re likely to receive an expat agreement in principle, meaning you will know your borrowing limits, the types of property you can look to buy, and, if buying a buy-to-let property, the rental income limits which will subsequently affect the amount you are allowed to borrow.
How do I apply?
Applying for an expat mortgage usually requires more in-depth information than a UK resident mortgage, including disclosing other buy-to-let properties you have and the likely rental income from the property.
Lenders will require a higher deposit than a typical mortgage too, with 25-35% being the standard figure for a buy-to-let expat mortgage.
What should I be aware of?
You should also be aware that most mortgage products advertised by most high street lenders are for UK residents only.
You must carefully consider each product available and offered, and this is where specialist expat lenders come in as they deal solely with expats looking to obtain a mortgage.
You should also be as honest and straightforward with your application as possible, and prepare all your documentation before applying to make the application process as easy as it can be.
Your credit score is likely to be poor considering you haven’t dealt with UK credit for a number of years, and despite how good your overseas credit record is, lenders will only look at your UK score, so ensuring all supporting documentation is ready to go will help your application.
You need to be aware of currency, too. Usually a mortgage is taken out in the currency which you earn income in, in this case dirhams (AED) but it can be a better option to take a mortgage out in the currency you will earn rent in (GBP.)
For advice on getting an expat mortgage if you live in Abu-Dhabi, speak to one of our expert advisers who will be able to help you with the next steps.