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What is a buy to let mortgage for non UK resident?
When people refer to a buy to let mortgage for non UK residents, they usually talk about either British ex-pats or foreign nationals.
Expats are people that are UK passport holders but have now emigrated and living overseas.
Foreign nationals are people that are non UK passport holders living in overseas countries.
If you are a foreign national, your options for lending in the UK are very limited, as only a few lenders can accept applications.
If you are an expatriate, more lenders can help you due to being a UK passport holder with links to the country.
Lenders that can assist you will need to know full details of how long you have been away from the country, your credit commitments within the UK, the property details itself, and your financial situation in the country that you live in.
If you are an expatriate or foreign national wanting to find out about your mortgage options, you should look for an experienced mortgage adviser that has arranged such mortgages.
They will be able to take full details of your residency situation, visas, income, expenditure and property details. This will allow the adviser to look for a buy to let mortgage for your situation.
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Is a buy to let mortgage for non UK residents more expensive?
If you are a non UK resident, your buy to let mortgage is likely to be more expensive than a standard product for people living in the UK.
This is because lenders that lend to expats or British nationals usually charge a premium on the product considering the lending to be higher risk than for a UK applicant.
One reason for this is the potential challenge of getting hold of a mortgagor in the event of non-payment.
In addition to higher interest rates, it is not uncommon for ex-pat and British national lenders to charge a higher amount on the arrangement fee.
The lenders accommodating these applications are often specialist lenders with more expensive products than the High Street.
Lenders rates and product fees change regularly, so to find out the kind of products you would be eligible for, consult an experienced mortgage broker who can review the finer details.
Should you use a mortgage broker for buy to let mortgages for non UK residents?
It is highly recommended that you look for an experienced mortgage adviser.
For foreign nationals, certainly, most lenders are not in a position to be able to offer these borrowers mortgages due to them not being based in the country and not a passport holders.
However, some specialist lenders are willing to offer mortgages to these borrowers if they meet the rest of the lender’s criteria.
With the lenders from a specialist background, they may only be willing to accept business via registered intermediaries.
You may find a lender willing to offer a buy to let mortgage for a foreign national.
However, with few of them in the market, you may not know which lenders to approach in that situation.
Most mortgage brokers are willing to offer a free consultation to understand your situation thoroughly and then look for a lender accordingly.
If you would like I NEED ADVICE to match you with a mortgage broker with experience in expatriate and foreign national buy-to-let mortgages. Please complete the contact form.
How much would an applicant need to earn for a buy to let mortgage for non UK residents?
The amount of income required for a buy to let mortgage for non UK residents will depend upon the landlord himself.
Some expatriate and foreign national mortgage lenders require your income to meet a certain threshold before they are willing to consider you for the finance.
For instance, a typical amount is £25,000. If you are located in a different country, they would look at the exchange rate based on your currency and perhaps even build a contingency, such as a 20% ‘haircut.’
Non-UK resident buy to let lenders still require full information on your financial situation abroad.
This is to understand your commitments to ensure that you will be able to pay the mortgage.
However, lenders can offer the expatriate buy to let mortgages with no minimum income.
They, too, would need to be comfortable that you will be in a position to make payments by understanding your financial situation.
To find out what your income will be, contact an experienced mortgage adviser.
How much deposit is required for buy to let mortgages for non UK residents?
The level of deposit required for a non UK resident when buying a buy to let property will depend on the lender’s criteria, the property’s value, and expected rental income.
A common minimum deposit amount for buy to let is 25% of the property’s value.
However, lenders considering expat mortgage applicants often ask for a higher deposit, such as 30 to 40%.
With foreign national mortgages being seen as more specialist and risky, this would likely be the case too.
Lenders do, however, change their criteria and have different rules for one another.
As a result, ask your mortgage adviser what deposit amount would be required based on your circumstances.
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Conclusion
If you are a non UK resident looking for a buy to let mortgage, you should still have options.
Some lenders can offer expat buy to let mortgages, and a few specialist lenders can also consider foreign national applicants.
Your mortgage product will likely be more expensive than average if you are an expatriate or for a national. Non-UK resident buy to let mortgages are specialist products, so expert advice is strongly recommended.
If you would like I NEED ADVICE to match you with an experienced mortgage broker who can tell you your options. Please complete the contact form.
They are experienced, which can boost your chances of being approved.
