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It is a question that many British expats and overseas buyers answer for themselves before they ever speak to a mortgage adviser. They assume that without a current salary or employment contract, a UK mortgage simply will not be available.
That assumption can be wrong.
What is the General Overview on obtaining a UK Mortgage as an expat when you don’t currently have a job?
To obtain a UK expat mortgage without a job depends on the type of mortgage you need, how affordability is assessed, and what other income, assets or financial resources are available. For some expat buy-to-let mortgages, the expected rental income from the property can be particularly important. For a residential mortgage, lenders may take a much broader look at your financial circumstances. So, being between jobs, taking a career break or relocating overseas does not necessarily mean you should rule out a UK expat mortgage.
Can an Expat Get a Buy-to-Let Mortgage Without a Job?
Potentially, yes. With an expat buy-to-let mortgage, affordability can be assessed differently from a standard residential mortgage. Rather than relying entirely on your employment income, specialist lenders may place considerable emphasis on the expected rental income from the property. The lender will normally assess whether the anticipated rent is sufficient to support the mortgage under its rental coverage and stress-testing requirements.
Depending on the lender and individual circumstances, this can mean that an expat applicant may still be considered depending on certain scenarios.
For example
If they are currently between jobs;
Taking a career break;
Relocating between countries;
A first-time buyer or first-time landlord;
Purchasing personally or through a limited company;
or
Receiving income that does not fit conventional UK PAYE criteria.
Some specialist lending options may also be available at up to 80% loan-to-value (LTV). In this case the deposit required will depend on the property, applicant, country of residence and lender criteria.
Why Savings and Financial Reserves Can Still Matter
Rental income may be central to an expat buy-to-let application but that does not mean lenders ignore the applicant’s wider financial position. A lender needs to understand what would happen if the property were temporarily vacant or an unexpected expense arose.
Savings, investments or other financial reserves can strengthen an application. This means you can demonstrate that you have the resources to manage the mortgage during periods when rental income may be interrupted. The important distinction is that having no current job does not necessarily mean having no route to mortgage affordability.
What If the Rental Income Isn’t Quite Enough?
This is where specialist underwriting can become particularly important. Different lenders assess expat buy-to-let applications in different ways. Where projected rental income does not quite satisfy a lender’s standard affordability calculation, there may be circumstances where other income or financial resources can form part of the overall assessment.
This is highly lender-specific, but it illustrates why an application should not automatically be dismissed simply because it does not fit a standard affordability calculator.
Can You Get a Residential Expat Mortgage Without Employment?
Residential mortgages are different because the property is intended to be your home rather than an investment generating rental income. Looking for an expat mortgage with no job- and so no current employment income-, means the lender will need to establish how the mortgage payments can be sustainably afforded. Depending on the lender and circumstances, the assessment could include taking into consideration:
Pension income;
Investment income;
Savings and investments;
Other sustainable sources of income;
Substantial assets;
Future employment circumstances where appropriate;
and
The applicant’s overall financial position.
This does not mean that assets automatically replace the need for income. Mortgage affordability rules still apply, and individual lender criteria vary considerably. However, being temporarily unemployed is not necessarily the same thing as being unable to afford a mortgage.
For example, someone who has recently relocated, completed an overseas contract and is waiting to begin another may present a very different lending risk from someone with no income, savings or financial resources.
What About an Expat Who Has a New Job Starting Soon?
This can also be worth investigating. If you have accepted a new position but have not yet started work, do not automatically assume that you must wait several months before considering a mortgage. Some lenders may consider applicants starting new employment or who have recently changed jobs, subject to their individual underwriting requirements and evidence of the new position and income. The key is finding a lender whose criteria fit the circumstances rather than assuming every lender will assess the application in the same way.
Could Joint Borrower Sole Proprietor (JBSP) Help?
Another possible route in appropriate cases is a Joint Borrower Sole Proprietor (JBSP) mortgage. A JBSP arrangement can allow another person to join the mortgage and have their income considered for affordability without necessarily becoming a legal owner of the property.
This may potentially help where an expat applicant is:
Between jobs;
Returning to the UK;
Starting a new career;
Temporarily earning less than usual; or
Unable to demonstrate sufficient affordability using their income alone.
JBSP criteria differ significantly between lenders, including who can act as the supporting borrower. Independent legal and tax advice may also be appropriate because the supporting borrower accepts responsibility for the mortgage debt without necessarily owning the property.
It is therefore a specialist option rather than a solution for every applicant.
What If You Are Employed Overseas?
This is where many expats unnecessarily rule themselves out. If you have a job overseas, there is a good possibility of more mortgage options available than you realise. We regularly speak to expats who are concerned because:
“My salary isn’t paid in pounds.”
“I’ve been outside the UK for years.”
“I don’t have much recent UK credit history.”
“I’m a first-time buyer.”
“I’ve just changed jobs.”
“I’m still in my probationary period.”
“I’m buying through a limited company.”
“I only have a 20% deposit.”
None of these circumstances necessarily means that a UK mortgage is impossible. Specialist expat mortgage lenders are accustomed to assessing applicants with overseas employment, foreign-currency income and circumstances that do not fit conventional high-street lending models.
Does Foreign Currency Income Affect an Expat Mortgage?
It can. If you earn in euros, US dollars, UAE dirhams, Singapore dollars or another currency a different approach is taken. A lender may apply specific criteria when calculating how much of that income it is prepared to recognise for mortgage affordability. The treatment of foreign currency income differs between lenders. This makes lender selection particularly important. A mortgage that appears unaffordable using one lender’s criteria may be assessed differently elsewhere.
Does a Lack of UK Credit History Stop an Expat Getting a Mortgage?
Not necessarily. Living abroad can mean that your recent UK credit footprint is limited. That is a normal consequence of expatriate life and something specialist lenders may be accustomed to considering. Lenders still need to carry out appropriate credit and financial checks, but a limited recent UK credit history should not automatically be interpreted as meaning that a mortgage is unavailable.
Better Question to Ask
Instead of asking:
“I don’t currently have a job – can I get a mortgage?” a more useful question is “What can my mortgage application realistically be underwritten on?” Depending on the type of mortgage and your circumstances, that could involve:
Rental income,
Overseas earnings,
Pension income,
Investments,
Assets,
Savings,
Background financial resources
or
Support from another borrower.
Speak to a broker who understands the specialist expat mortgage market before deciding you cannot qualify for a UK mortgage as an unemployed expat. A broker can help you explore your options and identify potential lenders.
UK Expat Mortgage Without a Job- Frequently Asked Questions
Can I get a UK expat mortgage if I am unemployed?
Potentially. It depends on whether you are applying for a residential or buy-to-let mortgage and what income or financial resources are available. Buy-to-let mortgages focus on rental income, while residential mortgages assess sustainable personal affordability.
Do I need a UK job to get an expat mortgage?
No. Expat mortgages are specifically designed for people living overseas, and specialist lenders consider applicants earning income outside the UK. You do not necessarily need UK employment or a UK salary.
Can I get an expat buy-to-let mortgage with no earned income?
There may be lenders willing to consider applications where the property’s rental income is the primary basis of affordability, although individual criteria, minimum income requirements and financial-reserve requirements vary. Its’s always worth speaking with a specialist broker who will be able to discuss the options available on obtaining an expat mortgage when you don’t have a job.
Can a first-time buyer get an expat buy-to-let mortgage?
Potentially, yes. Some specialist lenders consider first-time buyers and first-time landlords living overseas. The choice of lenders may be more limited, so individual circumstances need to be assessed.
Can an expat get a mortgage with a 20% deposit?
Some expat mortgage products may be available at up to 80% LTV, meaning a 20% deposit could potentially be sufficient. This is subject to lender criteria, property type, country of residence, affordability and the applicant’s overall circumstances.
Can I get a UK mortgage if I have just changed jobs overseas?
Potentially. A recent job change does not automatically prevent an expat mortgage application. The lender may consider the new employment contract, salary, probationary period and employment history.
Can I get a UK mortgage if my new job hasn’t started yet?
There may be circumstances in which a lender will consider future employment that has already been secured. The lender is likely to require evidence such as a signed employment contract and confirmed start date. Criteria vary significantly.
Can foreign currency income be used for a UK mortgage?
Yes, some lenders accept income earned in foreign currencies. The amount of income recognised for affordability purposes and the currencies accepted vary between lenders.
Can I buy UK property through a limited company while living abroad? Yes, limited-company buy-to-let can be an option for some expat and overseas investors. Mortgage, legal and UK tax implications should all be considered before deciding whether personal or company ownership is appropriate.
Don’t Rule Yourself Out Before You Ask
The specialist expat mortgage market does not always operate in the same way as mainstream UK residential lending. You can still obtain a mortgage when between jobs, earning overseas, or buying through a limited company. The important question is whether there is a lender and mortgage structure appropriate for your circumstances.
Liquid Expat Mortgages can assess your circumstances and explain your UK property, buy-to-let or remortgage options.
Call Liquid Expat Mortgages on +44 (0)161 871 1216 or request a no-obligation mortgage review through the Liquid Expat Mortgages website.
Don’t reject your own mortgage application before a specialist lender has had the opportunity to consider it.
Mortgage availability is subject to individual circumstances, lender criteria, affordability assessment and property suitability. Your property may be repossessed if you do not keep up repayments on your mortgage.
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden,
Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
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+44 161 633 5009
