If you are an Expat you have probably been sat scratching your head as to why we are penalised by mortgage lenders, or should I say perceived as a higher risk. 🤷♀️
Counter intuitive really given the vast majority are working in countries where income tax is not paid. So base salaries far outstrip the equivalent role in the UK, employed in roles where there is a demand for the skills being provided and on long term contracts.
I have been wrangling with this for some time now and it really only got nailed home to me recently when refinancing a property. 😣
UK Ltd Co 5 year deal – monthly mortgage payment £410.00 PCM (October 22).
Ooops – sorry one of the shareholders is an Expat – go back to go – £560.00 PCM (Oct 22). 😔
Given this is for a BTL mortgage product which is based on the rental income of the property (so the primary measure considered is not reliant on an overseas income) and the asset is a UK based asset, so again no different to any other borrow.
WOW – I know we will charge you more. 😔
I had been told previously that it is because mortgage companies have so much work, we are just seen as an added complication – basically why do they need Expats when they have more than enough work from UK business? We are not a tick box exercise, but I have to disagree. 👎
As an Expat our focus is on being compliant ✅, meeting the needs of our local country and adhering to the many rules of being here, so we are well versed in our own DD, after all how many people up and leave their home country on a whim? 🤔
A few things that may assist:
- Check your credit files in your home country, especially for errors.
- Maintain a bank account.
- Have a mobile phone contract.
- Have a credit card, use it as often as you can and pay it off.
- Ensure your address in your overseas country is clearly on your bank statements – not a PO Box number.
- Up to date residents’ documents.
- Local utility bills.
- Local mobile phone contract and broadband – again with your correct address.
One of the biggest challenges is finding reliable partners who specialise in assisting Expats. Check out The Expat Property Investors Group (GCC) on Facebook to see if you find the answer to your question there. 💯
