The expat mortgage market is growing as lenders expand their offerings

Overseas buyers continue to seek UK property investments and obtaining an expat mortgage is no longer the barrier it once was.

British citizens who do not reside in the UK are increasingly looking for credit to buy property here, so Dudley Building Society. As a result, the lender has upgraded its expat mortgage availability to suit its growing customer base in the space.

The company has increased its maximum expat loan amount from £ 1 million to £ 1.5 million, which will make a significant difference in the types of property that can be bought by those living abroad. It also offers a two-year fixed rate expat mortgage with an LTV of up to 80% at 3.89%.

While borrowing in the “underserved” and “niche” space of expat mortgages can sometimes be more of a challenge, the new offering from the Dudley Building Society aims to open the market to more buyers. At the same time, the lender has expanded its range of vacation loans.

New mortgage options for expats for 2022

Commercial Director Kieron Blackburn said, “We are seeing continued demand from expat and vacation rental customers and it seemed appropriate to expand our offerings in line with our recent increase in the maximum credit sizes for our standard large loan product. There are now only two other lenders that can match our new expat loan sizes and two other lenders that can match our vacation rental mortgage loan sizes.

“Dudley can be very pleased with the progress it has made this year. We would especially like to thank our importers for their continued support. It is gratifying to know that by 2022, society is in great shape to continue to offer a solid proposition based on strong products, innovative solutions in underserved niche areas like the expat market, and an underwriting that is always trying to understand the human story behind every application. We look forward to being on the road next year and passing on our offer to other brokers. “

Many of the country’s mainstream banks are now offering mortgages specifically for expats alongside a range of specialized lenders. Expat buy-to-let mortgages can also be taken out for property investors living abroad.

Buy-to-let from abroad

If you want to buy a property for rental income while living abroad, you need a buy-to-let expat mortgage. But real estate that you buy as your primary residence requires a “residential expat” mortgage.

To apply for both, you will need a substantial deposit (ideally in a UK bank account) and proof of the source of the deposit. You will also need proof of residence (for the past three years) and proof of income for a residential mortgage. With a buy-to-let mortgage, borrowers are rated based on their expected rental income.

Also take into account the repayment currency. the Mortgage Credit Policy (MCD) means that lenders must monitor exchange rates to ensure that foreign currency loans remain affordable to the borrower. Some specialist lenders also have a list of “Approved Currencies”.

Where do foreign investors buy?

According to the Public Data Center (CFPData), who carried out the research for HM Land Registry, more investors than ever are leaving the traditional London market. While London was the port of call for a lot of foreign investment a decade or more ago, many are realizing the value of helping new areas elsewhere.

The data shows that Liverpool, Manchester, Salford and Leeds in particular are now attracting more foreign investors. All of these areas stand out for their renewal, redevelopment and investment in recent years, making them a really attractive alternative to the more expensive London. CFPData believes that most of the foreign investment in these cities will be in apartments, which supports the booming rental demand in these areas.