United Kingdom
Best Expat Mortgage: questions and answers
Can I get a UK mortgage if I live abroad?
Yes. Offshore lenders, the international arms of some UK banks and specialist lenders offer expat mortgages, usually with a larger deposit and a minimum income.
How much deposit do I need for an expat mortgage?
Usually at least 20 to 25% for a home to live in, and 25 to 40% for buy-to-let.
Do non-residents pay more stamp duty?
Yes. Non-UK residents pay an extra 2% Stamp Duty Land Tax on residential property in England and Northern Ireland. Second homes and buy-to-let also pay the higher rates for additional homes.
Can lenders use income in a foreign currency?
Many can, but they often count only part of it to allow for exchange rate risk. Major currencies are treated most favourably.
Is an expat buy-to-let mortgage regulated?
Most buy-to-let mortgages are not regulated by the FCA. Mortgages on a home you or your family live in are. Use an FCA-registered broker either way.
How is rent from a UK property taxed if I live abroad?
Under the Non-Resident Landlord Scheme, basic-rate tax is taken from the rent unless HMRC approves you to receive it gross. You may still need to file a UK tax return.
Should I use a broker or go direct?
Go direct if you clearly meet one lender's criteria. A broker helps when your income, currency or property is less standard, because it can compare many lenders.