It’s estimated that over five million British people live abroad permanently. Some are in Europe, while others live further afield – but regardless of where they are in the world, many still have an interest in the UK property market and thus want to know about the availability of expat mortgages.
Unfortunately, there’s a lot of confusion around this topic, especially for those looking to borrow large sums. This has been exacerbated by political shifts like Brexit, and the fact that lenders are much more stringent about large mortgage applications than they were in the past. So, can British expats still get mortgages in the UK?
Expat mortgages: more complicated, but far from impossible
The short answer to this question is yes. However, the process of arranging mortgages for expats is definitely more complicated, particularly if you’re looking for high-value finance, or a mortgage over £1 million.
The reason behind this is that lenders generally see expats as higher risk borrowers. It’s harder to gain a clear sense of an applicant’s financial history when they’ve been living abroad, especially as an expat’s credit history may not be easily traceable. It’s also more difficult for lenders to complete the necessary checks – and if you’re paid in a foreign currency, exchange rate fluctuations could confuse matters.
Your location will have a further impact; an expat living in Australia or America might have more difficulty than one residing in France. And of course, the size of the mortgage you’re seeking will have an impact, as larger mortgages are more difficult to arrange in general.
How can British expats arrange a large mortgage?
Given the complexities at play – and the administrative difficulty of arranging finance from abroad – the easiest way to secure an expat mortgage is to use a specialist expat mortgage broker.
At Articus Finance, we receive many enquiries about expat mortgage rates for large loans, both for purchasing or refinancing. If you’d like to know more about the expat mortgages that might be available to you, one of our brokers would be happy to talk through your options.
If you’re wondering about securing a large mortgage in the UK, download our guide, Maximising your borrowing as an expat or foreign national.
