As a mortgage brokerage with global clientele, one of the most common questions our brokers receive is about the possibility of buy to let mortgage finance for overseas residents. The short answer is yes – but there are many challenges to be aware of, and to get the best result, you’ll likely need expert help.
Why is it more difficult for overseas residents to get buy to let mortgages in the UK?
Arranging a mortgage of any description can be a tricky process. But when you’re an overseas resident trying to secure buy to let finance in the UK, things can get complicated – fast.
There are multiple reasons for this. Buy to let mortgage finance is inherently perceived as riskier than residential property finance, because the monthly income that funds the mortgage repayments is less stable and the borrower isn’t relying on the property as a home. When the prospective applicant lives abroad, the potential risk for lenders is even greater, as it could be more difficult to recoup any failed payments.
This increased risk means buy to let mortgages for overseas residents are invariably more expensive than for landlords living in the UK. An expensive mortgage can quickly eat into any possible profit.
The challenge for global nationals
Residents of some countries will also face bigger challenges than others. US citizens, for example, often struggle to secure UK property finance because of tax complications – while some countries are considered ‘high-risk jurisdictions’ (such as Russia and Saudi Arabia), which again makes it harder to arrange a mortgage.
But, while it is undeniably a more complex process, it is definitely still possible to arrange a buy to let mortgage as an overseas resident. The key is to work with advisers who are experienced in this field, and have strong relationships with the right lenders.
At Articus Finance, we work with a broad variety of overseas residents looking to buy or refinance rental property in the UK. This includes UK nationals who have moved abroad, and nationals of other countries living around the world.
Buy to let mortgages for British residents living abroad
At Articus, we regularly work with:
- UK nationals who have moved abroad and want to refinance residential assets into rental properties in order to maintain an investment presence in the UK market
- UK nationals living abroad looking to invest in UK rental property, or expand an existing portfolio
- Nationals living abroad who have existing rental portfolios that need to be regularly refinanced in order to continually secure the best deals
Buy to let mortgages for global nationals
The UK property market is renowned around the world for being incredibly stable – and it has also proven itself a consistently strong spot for long-term price growth. Accordingly, global investors from America to Asia and beyond have a keen interest in the UK’s buy to let property market, despite the challenges of arranging mortgage finance.
The Articus team frequently assist investors from around the world, including:
- Prospective investors looking to begin a UK rental portfolio, despite having no UK bank account or no lending footprint in the country
- Global investors looking to expand their UK rental portfolio
- Existing international investors looking to refinance UK assets
- Applicants from ‘high risk’ countries that can struggle to secure UK property finance
Finding solutions – no matter the challenge
Our experience working with such a wide variety of clients means that no case is too challenging for us. Whether you’re living in a ‘high-risk’ country, have other complicating factors in your background (such as being self-employed) or have no experience with buy to let property finance, our brokers have the experience to understand your case and work with you to find a fast, cost-effective outcome.
Our experience also means that we have excellent relationships with relevant lenders. There is a far smaller panel of lenders willing to offer buy to let mortgages to overseas residents – but we work hard to build and maintain relationships with these institutions. This means we always have a clear sense of their lending appetite, helping us find a solution quickly – and, crucially, we can negotiate with them for the best deals on your behalf.
If you’d like more information on the UK’s buy to let property market, read our recent update for insight on its prospects – and the availability and cost of buy to let finance.
