International Mortgages

Surveys have shown a tremendous demand for buy-to-let (BTL) properties and international clients’ desire to capitalise in the UK. Yes, a foreign buyer can acquire a BTL mortgage; however, it may cost you more than usual because lenders see such mortgages as an increased threat; hence they mandate a larger deposit. 

A typical situation in the property market is that some people may be working and living in another nation but want to purchase a property in the UK. Such mortgages are readily obtainable and applying for them as a foreign national is feasible. It would be adequate to speak to a specialist mortgage advisor (like Care Financial Services) to make the process manageable so that they can correctly counsel you and provide you with the appropriate information. 

Your credit history is a very crucial element of your mortgage application. A good UK credit history is always beneficial as it simplifies the entire procedure, especially for international mortgage clients. Credit scores play a fundamental role in the mortgage operation because your lender may want to review a few things, such as:

• Your annual earnings and whether it not you have a sustainable income. 
• What impact may exchange rate fluctuations have on your income 
• Confirm the identity of your foreign employer or business (if self-employed) 
• . If you pose as a fraud threat or not

There is a higher chance of ensuring an international mortgage with a long-term credit history. If you have a bad credit history or cannot deliver a long-term credit history, you may not find a good number of lenders to secure your mortgage. However, we at Care Financial Services work with various lenders from the high street to local niche lenders. So whatever the situation may be, we assure you that we can help you. 

Whether you are applying for a standard mortgage or an international one, your borrowing ability will be based on two main factors: 

• The size of your deposit 
• Your income with evidence 

Usually, lenders in England tend to allow clients to borrow anywhere between 3-6 times your annual salary. Other factors can play a critical role in how much you will.be allowed to borrow such as: 

• Job History 
• Credit history 
• The number of dependents you have 
• Your annual spending 

If you earn in a foreign currency and want to acquire a mortgage in the UK, then you must keep in mind that exchange rates play a very integral role when you apply; this is because of the affordability standpoint due to which the smallest fluctuation in exchange rates can make repayments of your loan exorbitant or lead to fewer deposit sizes. Most lenders typically stress-test your annual earnings to ensure you can handle any drastic changes in exchange rates and repay your mortgage no matter the circumstances. That is why international mortgage lenders demand higher deposits. Exchange rates are also why international mortgages have higher interest rates than standard mortgage plans. 

Usually, lenders mandate a deposit of 25% of the property’s value. Lenders ask for such high deposits to eliminate any risks that may come into play, such as: 

• A short-term UK-based credit history 
• Unidentified foreign employers 
• Annual income amount 
• Fraud-related incidences