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Expatriate Mortgages for a new house purchase.
If you wish to buy a house in the UK and use it as your
primary residence, some lenders will consider advancing up to
95% of the purchase price. Lending criteria and mortgage terms
vary tremendously and different lenders will use their own
policy to determine a maximum loan figure.
Both UK and offshore banking institutions will consider
applications from British expatriates looking to purchase
property in the UK. Lenders use income multiples, affordability
and employment status before offering mortgage terms - some
lenders have strict lending policies whereas others are more
flexible when considering each mortgage application.
Generally speaking, the following table should give you a good
idea of the maximum Loan To Value (LTV) available if you're considering
buying in the UK.
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Employment
status |
Max LTV |
| |
|
|
Employed |
80% |
| |
|
|
Employed with Multi-National Company |
85% |
| |
|
|
Employed and returning to the UK |
95% |
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Protecting your interests.
Since October 2004, the selling of UK mortgages has been overseen by the
Financial Services Authority (FSA). For regulated mortgages you should now
be able to find clear comparable information about the service you receive
and the mortgage itself. This also means that when you ask us to give you
advice, we should offer you a mortgage that best fits your needs and must
consider how much you can borrow with regard to responsible lending rules.
The FSA now has strict guidelines with regard to mortgage pricing
information and how mortgages are advertised. For example, for regulated
mortgages the Annual Percentage Rate (APR) should be displayed more
prominently than the mortgage rate itself.
When comparing mortgage products the APR is more significant than the
mortgage interest rate, this is because the APR will indicate the true cost
of the mortgage including start up costs and any lenders fees. As an
example, costs and fees may be higher for mortgages with low interest rates
and no early repayment charges if you switch to a different lender.
UK Expatriate mortgages are regulated if more than 40% of the property being
purchased will be occupied by the purchaser or a member of the purchaser's
immediate family. Mortgage Regulation also applies to "buy to let" property
if you or your family have an intention to return to live in more than
40% of the property.
Your property may be repossessed if you do not keep up repayments on your
mortgages.
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