What Are The Differences Between Expat Residential Mortgage’s and Buy to Let Mortgages for the UK! In the United Kingdom, there are significant differences between expat residential mortgages and expat buy-to-let mortgages. These two types of mortgages cater to different purposes and borrower profiles. Here are the key distinctions: Property Usage: Residential Mortgage: A residential mortgage is used to finance a property that will be the primary residence of the borrower. Buy-to-Let Mortgage: A buy-to-let mortgage is specifically designed for purchasing properties that the borrower intends to rent out to tenants. Borrower’s Status: Residential Mortgage: Residential mortgages are typically available to individual borrowers who plan to live in the property. Buy-to-Let Mortgage: Buy-to-let mortgages are generally offered to landlords or property investors who want to buy properties for the purpose of generating rental income. Lending Criteria: Residential Mortgage: When assessing eligibility for a residential mortgage, lenders consider factors such as
Read more →WHO CAN GET EXPAT BUY-TO-LET MORTGAGES? Lenders offering expat mortgages take into account two additional factors, as well as the usual background checks and proof of income. Mortgage companies prefer borrowers who are employed by multinational companies, this allows them to confirm employment details and verify documentation. It is much easier than having to deal with an unknown overseas employer with the need for translation of documents, contracts and pay slips. If you’re self-employed, lenders would like to see your accounts being done by a small to medium-sized accountancy company which can be verified and has accreditation. The second issue mortgage companies look at is the country in which the expat is based. Some countries are deemed higher risk due to the history of widespread bribery, money laundering and corruption practices. Borrowers in such countries as Nigeria and Colombia may have a tough time finding a lender willing to offer
Read more →Why Should Expats Use An Expat Mortgage Broker When Sourcing Their Mortgage For The UK Using an Expat mortgage broker who are professionals who specialize in assisting individuals who are living abroad to obtain mortgages or home loans in their home country. These brokers play a crucial role in helping expatriates navigate the complexities of the mortgage market, providing them with valuable advice and expertise to secure financing for their property purchase. Here are 1000 words explaining why expat mortgage brokers are essential for individuals living abroad. In-depth knowledge of the mortgage market: Mortgage regulations, requirements, and processes vary significantly from country to country. Expat mortgage brokers have a deep understanding of the mortgage market in the home country of the expatriate, including the legal, financial, and regulatory aspects. They are familiar with the local rules and regulations, lenders, and mortgage products available for expatriates, which can be complex and
Read more →What Is an Expat Mortgage? An expat mortgage is a mortgage that allows you to buy a property in another country such as the United Kingdom. It’s also known as a cross-border or international mortgage. An expat mortgage can be used by anyone who has purchased property abroad, whether they’re living there permanently or just renting out the home while they visit on holiday. The Process of Applying for an Expat Mortgage The first step in applying for an expat mortgage is to gather all of the necessary documentation. This includes: Proof of income (most lenders require three months’ worth) Identification documents, such as a passport and birth certificate Residence permits or visas that allow you to live in your chosen country Proof of assets and liabilities What Are the Differences Between Standard and Expat Mortgages? There are a number of differences between standard and expat mortgages. The most obvious
Read more →Can An Expat Based In Hong Kong Secure A Mortgage In The UK? Yes, expats based in Hong Kong can secure a UK mortgage, but the process can be more complicated than it is for UK residents. In this article, we’ll discuss what an expat mortgage is, the eligibility criteria, the types of mortgages available, and how to apply. What is an expat mortgage? An expat mortgage is a mortgage designed for non-UK residents who want to buy a property in the UK. It can be used to purchase a residential property or a buy-to-let property. However, because expats don’t live in the UK, they may face more restrictions and requirements when applying for a mortgage. Eligibility criteria for an expat mortgage The eligibility criteria for an expat mortgage can vary depending on the lender. However, there are some common requirements that expats need to meet to be eligible for
Read more →How Can Expats Secure Expat mortgages For The United Kingdom When Based Overseas? As an expat, obtaining a mortgage in the UK may seem like a daunting task, but it is certainly possible. In this article, we will discuss the steps you need to take to get an expat mortgage in the UK. The eligibility criteria for expat mortgages in the UK vary depending on the lender. However, most lenders require that the applicant has a stable income, a good credit history, and a deposit of at least 25% of the property’s value. Some lenders may also require that the applicant has a UK bank account or a UK-based guarantor. Consider a specialist mortgage broker A specialist mortgage broker can help you find the best mortgage deal for your circumstances. They have experience working with expats and understand the eligibility criteria for expat mortgages in the UK. A broker can
Read more →The chancellor is expected to unveil a mortgage guarantee scheme that aims to help first-time buyers get their foot on the property ladder in next week’s budget. Rishi Sunak is attempting to incentivise lenders to provide mortgages to first-time buyers, along with current homeowners, with deposits as low as 5% on properties worth up to £600,000. The government will offer lenders the guarantee they need to provide mortgages covering the remaining 95%, with details set to be unveiled on Wednesday. The scheme will be subject to standard affordability checks, and is expected to launch in April. Low-deposit mortgages have virtually disappeared due to the economic impact of the coronavirus pandemic, the Treasury said as Boris Johnson announced he wanted “generation rent to become generation buy”. “Young people shouldn’t feel excluded from the chance of owning their own home and now it will be easier than ever to get on to
Read more →Portfolio mortgages can simplify finances for overseas and expat landlords holding property in the United Kingdom, as that’s what they’re primarily designed for. With recent news regarding tax and stamp duty laws, overseas landlords are forever looking at methods to increase their investment income. Further changes in 2020 will lower the amount of tax relief a landlord can claim. For instance, overseas landlords won’t be able to offset interest as an expense like previous years. For landlords with multiple properties, or landlords aiming to grow their portfolios, a portfolio mortgage could be something to consider. Placing an entire portfolio under one mortgage can be beneficial, especially with a large number of properties. What is a portfolio mortgage? A portfolio mortgage allows overseas and expat landlords to place all of their buy to let mortgages under one mortgage. Portfolio finance is treated as a single mortgage account. Rather than having separate buy
Read more →In 2018, the average UK tenant spent 52% of their disposable income on rent and with rental payments so high it makes saving for a deposit to purchase a flat or home very difficult. There is however a scheme that provides an option for those who wish to own a property but do not have a large disposable income or savings. The Shared Ownership mortgage scheme allows applicants who are not able to currently afford to buy a property with the option to ‘purchase’ a share of a property whilst paying rent on the remainder. To be eligible for this scheme your household income must be £60,000 or less (£90,000 or less in London). Also, you need to be approved by the Housing Association and often you can only buy in the borough that you currently live in. An Example You buy a 25% share in a £500,000 property for £125,000. Your
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A UK new-build property Should you buy a UK new build property or an existing property already built? You often see news in the press moaning that not enough new homes are being built in the UK and that there’s a vast shortage of housing. In fact, government figures show 162,180 were built last year (2018). That isn’t enough to fix the housing shortage but it does mean most of us will come across a brand-new property when we are out house hunting. Here are some pros and cons of buying a brand sparkly UK investment property new home straight from the developer against an existing home already built and for sale on the market. Pro’s of buying a new build property in the UK Unpack and go – A new home is a blank canvas with fresh tiling, paintwork, kitchens and bathrooms. This means there should be very little,
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