Top property locations in the UK for ex-pats:
If you are planning to purchase property in the UK, one of the most difficult decisions can be choosing where to buy. After the economic recovery from COVID’19, the property market has become favorable toward property investors. Throughout 2021 property prices have increased by 9.8%, and the average value of properties has gone up to £280,921. This has resulted in a greater return on investment for ex-pats looking to invest in buy-to-let (BTL) property’s in 2022.
The pandemic lockdown period has allowed many to value outdoor areas and more home space, increasing property prices. When buying a property, specifically a BLT, ex-pats usually determine how much rental yield the property can generate.
Rental yield is usually based on the annual percentage of the property value. For instance, if a property is worth £400,000 and generates £20,000 per year in rent, the yearly rental yield would be 5%. Based on rental income, rent percentages have increased by 8.6% across the UK. This is primarily because of young workers who have returned to the cities to return to the office as the COVID restrictions ease. London rents are increasing slower than in other cities, while in areas such as Bristol, Glasgow, and Nottingham, rental rates have increased by 10% compared to pre-pandemic times.
UK expat mortgages for people earning in foreign currencies:
Securing an expat mortgage deal cannot be easy if you make it overseas. One of the main reasons is that foreign income streams can be complex for banks to handle because of the following reasons:
- Fluctuation can pose an issue in your ability to repay your mortgage.
- It could be difficult for the lender to track your employer and income stream.
- If income is coming through a foreign source, it could pose a risk of money laundering.
- If you live overseas, you could have an untraceable credit rating.
These factors decrease the chances of any bank lending you money and make the overall process much more expensive.
However, if you earn in foreign currency, that does not mean a mortgage am not be obtained. You must fulfill your application criteria correctly and have all the proper documentation available.
Applying for a joint UK mortgage with a Non-UK national partner:
The most common cause in this scenario is couples where one partner is a UK national while the other is not and are keen on making a home in Britain. In such cases, it can be challenging to get a mortgage, as lenders are likely to reject the application solely based on the case’s complexity.
At C4M, we can find the right lender who can still get you the finances in such a case. The following are mortgage finances for mixed national couples:
- In cases where one partner doesn’t have a permanent residence in the UK, property finances can be sourced for up to 70% of the property value, but only on a capital & interest replacement basis.
- For clients in tier 1 general visas, lending can be accessed for up to 90% of the property value
Three common causes have been seen, one of which is for European citizens living in the UK; a UK mortgage can be secured if:
- You have been living in the EU for over 3 years
- You have a UK bank account
- You have a permanent UK job
The second case is where you are from outside of Europe but are currently living in the UK; then a mortgage can be secured if:
- You have been living in the UK for over 2 years
- You have a permeated UK job
- You have residence rights in the UK
- You have a UK bank account
Thirdly, if you are a citizen of a different county and live outside of the UK but are buying property here, you should speak to a specialist mortgage broker from C4M.
Countries where we can help UK expats; high and low-risk countries:
As a UK expat, the country you currently live in can significantly impact your mortgage application process. It is important to approach the right lender, who can help you effectively with the right mortgage deals, terms, and fees. The country you reside in is a very important factor for many reasons. Firstly, earning in a foreign currency can pose an administrative burden on the lender. Secondly, foreign currencies can be more difficult for UK banks to verify and pose a risk for money laundering. This may result in a more costly mortgage process.
Many lenders are much more lenient with expats from countries such as USA and UAE and offer several great deals to choose from. However, for countries that are not on the International Financial Action Task Force (FATF), banks are reluctant to lend to such expats as these countries have a high ratio of money laundering and terrorist financing cases.