Expat Mortgages for Leicester Property
Expat Mortgages for Leicester Property
Where you are resident comes first
Most lenders offering expat mortgages maintain a list of acceptable countries of residence. Some are broad; others are restrictive.
Anti-money-laundering and sanctions requirements sit behind this, and they are not negotiable. A lender that will happily lend to a British expat in one country may decline the identical case from another.
Tell us your country of residence at the outset. It filters the lender list before income or deposit are even discussed.
Currency, and the discount lenders apply
If your income is paid in a currency other than sterling, expect the lender to discount it — commonly by around 25% — to allow for exchange rate movement over the life of the mortgage.
That is a substantial reduction, and it is applied before the income multiple. It is the single biggest reason expat borrowing figures come in lower than applicants expect.
Some lenders accept only a defined list of currencies. A smaller number will not consider foreign currency income at all, lending only where you are paid in sterling.
Where you have a choice — for instance if part of your package is sterling-denominated — it is worth structuring the application around the currency that survives the discount best.
The thin credit file problem
Several years abroad usually means little recent UK credit activity. Automated credit scoring handles that badly: no data reads as risk, even where the applicant is perfectly creditworthy.
Two things help.
Manual underwriting. Lenders who assess by hand can look at overseas credit evidence, employment history and bank statements rather than relying on a UK score.
Maintaining a UK footprint. If you still have a UK bank account, a UK credit card used occasionally, or an address at which you receive post, keep them. If you are planning to move abroad and may want a UK mortgage later, do not close everything before you go.
Residential or buy to let
Expat buy to let is the more established market, and the easier of the two to arrange. Many expats own a Leicester property let out while they are overseas — often a former home.
Expat residential is more limited, because a lender generally expects an owner-occupied property to be occupied. It is achievable where there is a clear plan to return, or where family will live in the property, but the pool of lenders is smaller.
If you moved abroad and let out your former home without telling your lender, that is worth resolving. You will usually need either consent to let or a switch to a buy to let product. It is easier to sort out proactively than to have a lender discover it.
Planning to return
A large share of the expat lending we arrange is for people who intend to come back — buying now to have somewhere to return to, or keeping a property let in the meantime.
Two things are worth planning around.
Timing the switch. A property bought on an expat buy to let basis needs converting to a residential mortgage when you move into it. That is a remortgage, assessed on your UK income at the time — which may not yet exist if you have only just returned. Some lenders will consider a signed UK employment contract before you start; many want payslips.
Rebuilding a credit footprint takes months, not weeks. If you know roughly when you are coming back, start early: keep a UK bank account active, register on the electoral roll as soon as you have a UK address, and avoid closing long-standing accounts before you go.
Returning and immediately applying with no recent UK income and a dormant credit file is the hardest version of this. Six months of planning removes most of the difficulty.
Paperwork takes longer — start earlier
Expect more documentation and more time:
Certification, translation and international post all add time. A case that would take four weeks domestically can take eight. Build that into any purchase timetable, and do not agree a tight completion date.
- Passport and proof of overseas address, often certified
- Overseas payslips and employment contract, sometimes translated
- Overseas and UK bank statements
- Tax documentation from your country of residence
- Evidence of deposit and its source, traced properly
Time zones and signatures
Two practical frictions worth planning around.
Documents needing certification. Lenders often require certified copies of identity documents, which usually means a notary, a solicitor or an embassy in your country of residence. That takes time and costs money, and it is worth getting done early rather than at the point a lender asks.
Signing and witnessing. Some documents still require a wet signature and a witness. Where international post is involved, allow considerably longer than a domestic purchase would need.
We work by email and video across time zones, and we will tell you at the outset exactly what needs certifying so it can be arranged in one visit rather than three.
Speak to a Leicester expat mortgage adviser
We work by email and video across time zones, so being overseas is no obstacle to getting advice.
Call 0116 277 7536 or book a free consultation.
Cedar House, 3 Broad Street, Enderby, Leicester, LE19 4AA.
Common questions
Can I get a mortgage on a Leicester property while living abroad?
Yes. A number of lenders offer expat mortgages, most commonly on a buy to let basis. Residential expat lending exists but is more limited, since a lender generally expects an owner-occupied property to be occupied. Expect a larger deposit and a narrower choice than a UK resident would face.
How much deposit will I need?
Typically 25% as a minimum, often more depending on the country you are resident in and the currency your income is paid in. Some lenders require 35% or 40% where income is in a currency they consider higher risk.
Does the currency I am paid in matter?
Considerably. Lenders apply a discount to foreign currency income to allow for exchange rate movement, commonly reducing the assessed figure by around 25%. Some lenders accept only a defined list of currencies, and a few will not consider foreign currency income at all.
Will a thin UK credit file stop me?
It makes things harder rather than impossible. Years abroad often mean little recent UK credit activity, and lenders that rely on automated scoring struggle with that. Lenders who underwrite manually are usually the answer, and keeping a UK bank account and address history open helps considerably.
Which countries are acceptable?
It varies by lender. Most maintain a list of acceptable countries of residence, and sanctions and anti-money-laundering considerations apply. Tell us where you are resident at the first conversation, because it determines the lender before anything else does.
Can I remortgage a property I already own in Leicester?
Yes, and expat remortgaging is common — often where someone bought before moving abroad and is now letting the property. Where you have moved out and let a former home, you may need consent to let from your existing lender or a switch to a buy to let product.
Related
Important information
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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