There are many reasons that as an expat you may wish to remortgage your property in the UK. Just when we think we have heard of every reason possible a new one is presented to us, the words expat and inventive seem to go hand in glove together.
Often when a client takes a mortgage to buy a home in the UK the opportunity to work and live abroad is not even a consideration. This means that no forward planning was in place to ensure that the UK lender selected allows you to move out of your property. Whilst the lender cannot physically stop you from moving abroad, they can, under the terms of the mortgage agreement, request their money back.
A further issue can arise if you wish to rent out your property in your absence. A traditional UK mortgage does not provide you with permission to rent your property out. Doing so contravenes the terms of your mortgage agreement, and again the lender can request their money back.
The simple answer to these issues is to remortgage to a lender and scheme designed specifically for expats, the lender will be aware and happy with your residential status and will provide you with permission to let your property, usually for a 3 to 5 year initial period.
Even if you are already on the correct type of mortgage deal your circumstances may dictate that a remortgage is necessary. Sometimes you may find that you need to capital raise. A suitable remortgage can allow you to access some of the equity in your property; up to 75% of the value of your property is normally the maximum for an expat remortgage. The capital raised can be used for a wide range of purposes, quite often it is used as the deposit that allows an expat to purchase a property in the country they now reside in.
A further reason may be as simple as just obtaining a better deal. Some lenders offer attractive Fixed or Tracker rates for the initial 2 years of a deal. They hope that you will then remain on the higher variable rate for the remaining term of the loan. It is often the case in these instances that the services of a mortgage broker become invaluable. We will take your specific circumstances and shop the market to find the best possible deal out there for you.