How to Get a Mortgage if I am Not From the UK? Do you dream of owning a property in the UK, but your dreams come to a standstill because you are not living there? It’s time to dream again as it is possible to get a mortgage even if you are not a resident there. Unfortunately, there are a number of people who get disappointed after being rejected by UKs banks or building societies. This could be a clear case of approaching a lender who doesn’t offer mortgages to expats or people who are not residing in the UK. And if you are really unlucky, your application might continue lying in the system for a long time before you get to know that things won’t move forward at all.
What you need is to find a lender or financial specialist who can get you a mortgage for buying a property here. It is not all that difficult as there are such banks and other lenders who deal in such cases. Such a bank or lender will be aware of the latest rules and regulations of lending mortgages to UK expatriates or foreign nationals in addition to having the right network and connection with those who can help with the documentation and other official formalities.
If You Are An UK Expat
The good news is that mortgage finance is available for UK expats as well. You might face certain restrictions related to money-laundering laws depending on your current country of residence and the currency you earn in. For all foreign currencies, a set percentage, which is usually up to 25% is deducted by the lender. This amount is arrived at by foreign currency salary affordability calculation so that exchange rate fluctuations can be accounted for.
Additionally, you might face difficulty in getting mortgage finance if you come from an ‘At Risk’ country. Such countries are not highly rated in the list published by the Financial Action Task Force (FATF).
However, if you work with an experienced broker like us, they will help you navigate through all these challenges and help you get a favourable mortgage.
If You Are A Foreign National
A UK mortgage can be availed even if you are a foreign national. While the same conditions will apply to you as applied to UK expats – the country you live in and its FATF rating and the currency you are paid in – you will also have to face certain additional conditions that include identity proof documents of your current country of residence (these should be acceptable in the UK) and your UK credit score.
Remember that credit ratings are not internationally transferable. You might have a really high credit score in your country, but not as such in the UK. To have a satisfactory credit score in the UK, you will need an active account in a UK bank, an active UK credit card that shows regular transactions and payments and a clean credit score from the top UK agencies – Experian, Equifax, and TransUnion.
If you are buying a high net-worth property, you can improve your credit score. This can be done by transferring a high amount of well-documented cash holdings in any UK bank. With so many conditions to be fulfilled to get mortgage finance, it is best to hire a broker who is experienced in dealing with these kinds of cases. They will not only be able to advise you properly on intricate matters but will also speed up the entire process.
If You Are A Non-Dom For UK Tax
Even though the issues you might face while getting a mortgage as a non-dom would be the same as those of expats, foreign nationals or HNW, a specialist mortgage broker might be able to help you. A tax advisor might not have the right knowledge and resources to find lenders providing mortgages to your requirements, neither would every mortgage broker would understand taxes. So, it would suit you best to find a broker who also understands the tax implications.
If You Are A Seafarer Or Yacht Crew
A crew member on a ship or a superyacht travelling across international waters is not necessarily considered a resident in the UK, however, there are certain provisions that allow you to own a property. A special exemption from the Tax Office allows such crew members, who fulfil all the conditions laid down by HMRC Statutory Residence Test and file tax returns annually, to get 100% exemptions on their foreign earnings. If you submit UK tax returns and you are eligible for HMRC’s Seafarer’s Earning Deduction, you can get a mortgage on domestic rates rather than on expatriate lending rates. It is a huge relief.
So, even if you don’t reside in the UK, it is possible to get a mortgage and fulfil your dream of owning a property. All you need to do is find the right broker who has the right knowledge about the rules and regulations and the right network of lenders who provide mortgages to cases like yours.
Once you fulfil all the prerequisites, you can avail a mortgage and own your dream property. Partnering with an experienced expatriate mortgage broker such as Loan-Broker will help you navigate through all the complexities and speed up the entire process, providing you with the best financial solutions that suit your individual needs.