Great deals on expat mortgages
At Yomo Finance, we understand the unique challenges faced by British expats and foreign nationals living abroad who wish to invest in UK property. Our expat mortgage range is designed to cater to the specific needs of these international buyers, ensuring a seamless and hassle-free experience. Contact our team in Aylesford now to find out more.
What is an expat mortgage?
An expat mortgage is a specialised mortgage product tailored for individuals who are not currently residing in the UK but wish to purchase or remortgage a property in the country. These mortgages are designed to accommodate the unique circumstances of expats, such as foreign income sources, credit histories and residency statuses.
Are you eligible for an expat mortgage?
While the eligibility criteria may vary depending on the lender, generally, you may qualify for an Expat Mortgage if you meet the following requirements:
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Residency status - you can be a UK national residing outside the UK (a British expat) or a foreign national living abroad who wishes to invest in UK property.
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Income and employment - Lenders will assess your income and employment status to determine your ability to make mortgage payments. This can include income earned in foreign currencies or from international sources.
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Credit history - While you may not have a UK credit history, lenders may consider your credit profile from your home country or other relevant financial information.
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Deposit - Most lenders will require a higher deposit, typically ranging from 25% to 40% of the property's value, to mitigate the perceived higher risk associated with expat mortgages
Case study: expat British national buying a home in the UK
Background:
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Previous property owner in the UK
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Average income
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Lives and works in France
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GBP income
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Married with no children
An expat British national and living in France with his wife, was looking to buy their next home in the UK.
Yomo Finance worked with clients to source the most appropriate lender and product within a short space of time. Advising the clients of the administration and documentation required as an expat. We supported the client by understanding their unique circumstances and navigating the expat lender market. Working with our specialist mortgage brokers, the client secured a mortgage at a competitive rate and the client successfully purchased their next home in the UK.
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How much can I borrow?A typical mortgage applicant can expect to borrow four and half times their annual income. This should not be affected by your employment type unless your income is low or you have a poor credit score.
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What deposit will I need?There is no specific deposit requirement needed by self-employed applicants and the minimum deposit usually needed for a standard residential mortgage is 10%. That being said, with a short trading history, you will increase your chances of securing a mortgage if you are able to offer more than the minimum deposit requirement. This can also give you access to more competitive mortgage rates.
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Do I have access to the Help to Buy scheme if I’m self-employed with one years’ accounts?All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you. All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you.
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What documentation is needed for a self-employed mortgage application?Tax returns, business accounts and possibly a reference from an accountant. This all depends on whether you are a sole trader, a director of a Limited Company or are in a partnership.
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How many years of accounts do I need to provide?Usually, two to three years of accounts. However, you can get a mortgage with one year's books.
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Can I get a mortgage if I am a contractor or freelancer?Yes, but you may need to provide more evidence of income stability. Typically you would need 12 months history.
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How do lenders assess self-employed income?They typically look at your average income over the past two to three years.
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What can I do to improve my chances of getting a mortgage as a self-employed individual?Keep thorough records, pay your taxes on time and maintain a good credit score. You should also limit the amount of expenses you put through in order to maximise your income.
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Are there specific lenders that specialise in self-employed mortgages?Yes, some lenders are more flexible with self-employed applicants.
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How does fluctuating income affect my mortgage application?Lenders prefer stable and predictable income but may consider averages.
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What is the impact of a limited company structure on getting a mortgage?Your income may be assessed differently, focusing on salary and dividends.
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Are interest rates higher for self-employed mortgages?They can be, depending on the perceived risk by the lender but most do not charge higher interest rates for self-employed applicants.
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