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For UK expat and foreign national investors looking to re-mortgage a UK property, the process can seem incredibly daunting. The main reason for this is that most try to conduct a re-mortgage with a conventional high street lender. However, high street lenders are far from the easiest or most cost-effective solution.
Why Re-mortgage?
‘There are many reasons that UK expat and foreign national investors come to us in need of a re-mortgage for their UK property’ says Stuart Marshall, CEO of Liquid Expat Mortgages. ‘The three most popular reasons we encounter are: to transfer a residential mortgage to a buy-to-let or vice-versa; to reduce monthly repayment costs; and for equity release which can fund other purchases or investments. All of these reasons are incredibly worthy causes and can unlock real benefits for UK expat and foreign national investors. However, it’s of vital importance to get the best advice, otherwise the process can be complex, costly and lengthy.’
Differing Situations.
The main reason that high street lenders are not best suited to conducting UK expat and foreign national re-mortgages is because of the huge breadth of reasons that UK expat and foreign national investors have to re-mortgage. For some, it is as simple as a fixed-term mortgage coming to an end and the investor is hoping to avoid their lender’s standard variable rates. This is simple enough, but some lenders are reluctant to lend to UK expat or foreign national borrowers because there is often a perceived level of higher risk.
For other borrowers, the LTV of their mortgage is now far lower than when they first got a mortgage. This can be because the value of the property has risen substantially, or because they have paid off large amounts of their mortgage. Having a lower LTV can massively improve interest rates and monthly repayments. It can also allow UK expat or foreign national investors to withdraw some of the equity from the property, which can then be used to invest in other investment products or a larger property portfolio. This is quite common, as building a property portfolio is a common goal for UK expat and foreign national investors. Luckily, there is a whole range of available finance for UK expat and foreign national investors, which can make their money go much further. With the advent of specialist mortgage brokers and lenders, this has become far easier, allowing UK expat and foreign national investors to build their investment portfolios.
Many UK expats have found themselves in a situation where they would like to retain the property they owned in the UK, renting it out while they live abroad to have an extra income stream. This involves changing the mortgage from a residential mortgage to an expat buy-to-let mortgage. In this situation, it is vital to get expert advice from a specialist broker to ensure that rental income is maximised. Conversely, there are UK expats who are looking to move back the UK. In this instance, getting a mortgage can be notoriously difficult with many lenders rejecting borrowers who haven’t had a UK address in the past three years. Specialist brokers and lenders will again prove to be a massive advantage in this instance, as they will be able to advise which lenders will be open to lending and secure the best available deals and rates.
Things to Consider.
UK expat and foreign national re-mortgages are easier to get than a new mortgage. This is because, in most cases, borrowers will already have an up-to-date UK credit history from their existing mortgage, which will make it easier to get a new deal. Income is another important factor and earning in a foreign currency can be a barrier when re-mortgaging. The volatility of different currencies can also be an issue, with fluctuations meaning borrowers could be refused a re-mortgage or pay higher rates. This is more of a problem with niche currencies than major currencies but is still something to bear in mind.
Re-mortgage applications can also be more difficult depending on where the UK expat or foreign national borrower lives. For some lenders, Australia, South Africa and even Singapore can be some of the common expat and foreign national locations which can be on the refusal list. Specialist expat and foreign national mortgage brokers will be aware of the best lenders for UK expat and foreign national borrowers from these ‘problem countries’.
Using a Specialist Broker.
Specialist UK expat and foreign national mortgage brokers can make the process of re-mortgaging a UK property far easier. Once they have gathered all the relevant documentation, they can help to save time and money by submitting, managing and chasing the application with the lender. By facilitating this re-mortgage process, specialist mortgage brokers keep costs down in the long-term. This will also make the process far easier than using a high-street lender.
There is a lot of necessary documentation and specialist UK expat and foreign national brokers will be able to provide lenders with exactly what they need, streamlining the process. Getting expert advice can provide UK expat and foreign national borrowers with a full range of market-leading options and get the best rates for their specific situation.
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
Any media enquiries please contact Ulysses Communications.
sergio@ulyssesmarketing.com
+44 161 633 5009
Disclaimer:
The content of this article is provided for informational and illustrative purposes only and is not intended as financial, legal, or tax advice. Liquid Expat Mortgages is authorised and regulated by the Financial Conduct Authority (FCA) to provide mortgage and protection advice. However, the FCA does not regulate certain investment mortgage contracts, and any views expressed herein may include unconventional or contrarian perspectives that do not necessarily reflect standard industry practices or regulatory guidance. Your home or property may be repossessed if you fail to keep up repayments on a mortgage or any other debt secured against it. We are not authorised to provide legal or tax advice, and we strongly recommend consulting a qualified professional for personalised guidance tailored to your circumstances before making any financial decisions.
