With employment opportunities becoming increasingly globalised, it’s common to find UK nationals (both non-domiciled as well as non-resident) settled outside the country. But being an expat need not stop you from investing and building your dream home in the UK. A home in the UK serves as an excellent financial investment as well as provides a place to live in when you return home for good. Are expat mortgages any different in process from conventional mortgages in the UK?
The main difference lies in tax and currency related considerations. As far as currency implications go, in all likelihood, you may be earning in a currency other than the Pound Sterling. What you need to pay closer attention to is currency exchange fluctuations that may make property investment more expensive than it should. Foreign exchange rates change on a daily basis and since property purchase is a heavy investment, you need to be particularly vigilant about currency volatility. Since you are earning an income abroad, there will be various tax implications to consider. Although there are several UK banks and money lenders that service the expat population, they are often sceptical about approving overseas mortgage loans. This is the reason why you often find much fewer lenders willing to service expat mortgages compared to local clients. Expat mortgage loans stand higher chances of being rejected simply because lenders consider these as high-risk cases.
Looking for a competent and reputed broker has several benefits to offer.
Firstly, you don’t have to worry about issues such as taxation and currency exchange rates. The broker will be able to connect you to trustworthy and reliable lenders and you stand a much better chance of getting a property loan approved as you have a professional working on your behalf.
An independent expat mortgage broker will be able to recommend properties and loans that suit your preferences and budget. The best part is that you do not have to pay your broker out of your pocket. Most expat mortgage brokers earn their commissions from property investment banks and lenders.
Expat mortgages often involve a staggering amount of paperwork that can feel overwhelming. A broker will help you prepare your documents and keep you briefed on whatever you need to submit to get a loan approved.
Expat mortgages tend to get processed faster and more efficiently through a broker given the privileged relationship between brokers and lending institutions. In addition to this, brokers are often successful in securing attractive lending rates for expat clients. This is because they transact huge volumes of business for specific lending institutions and are able to offer lower rates than you might have been offered on your own.
The bank or lending institution underwriting your loan application will give priority to your application over others when using an experienced broker. Expat mortgages transacted through a broker will tend to much more relaxed, hassle-free and smooth compared to doing it on your own. The broker will handle any questions or issues that arise with the bank.
To conclude, a competent broker for expat mortgages can effectively save you time, money and effort and help you get a preferred property in the UK.