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Differences Between An Expat Mortgage And A Standard Mortgage

What Is an Expat Mortgage? An expat mortgage is a mortgage that allows you to buy a property in another country such as the United Kingdom. It’s also known as a cross-border or international mortgage. An expat mortgage can be used by anyone who has purchased property abroad, whether they’re living there permanently or just renting out the home while they visit on holiday. The Process of Applying for an Expat Mortgage The first step in applying for an expat mortgage is to gather all of the necessary documentation. This includes: Proof of income (most lenders require three months’ worth) Identification documents, such as a passport and birth certificate Residence permits or visas that allow you to live in your chosen country Proof of assets and liabilities What Are the Differences Between Standard and Expat Mortgages? There are a number of differences between standard and expat mortgages. The most obvious one is the interest rate, which can be considerably higher for expats. This is because the lender has to take into account the extra risk involved with lending money to someone who may not live in their home country for an extended period of time. Another big difference between standard and expat mortgages is how long your loan term lasts: if you’re looking at getting a mortgage from a UK bank or building society, they’ll probably only offer you fixed-term deals lasting up until 25 years (the longest allowed by law). However, many international lenders offer flexible repayment options that allow borrowers to pay off their loans over any period between five years and 30 years – perfect if you want flexibility but don’t want to commit yourself fully just yet! What Are the Advantages of an Expat Mortgage? Tax benefits: If you’re a non-resident, the interest on your mortgage will be tax deductible in the UK. This can be a big advantage if you’re earning money overseas and paying taxes there rather than in the UK. Lower interest rates: The lower cost of borrowing means that expat mortgages tend to have lower rates than standard UK mortgages if the rates are lower in their host country. More flexibility: Expats often need more flexibility than other borrowers because they may not know where they’ll be living next year or even next month! For example, if an expat wants to rent out their property while they live abroad temporarily (perhaps while

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Can An Expat Based In Hong Kong Secure A Mortgage In The UK?

Can An Expat Based In Hong Kong Secure A Mortgage In The UK? Yes, expats based in Hong Kong can secure a UK mortgage, but the process can be more complicated than it is for UK residents. In this article, we’ll discuss what an expat mortgage is, the eligibility criteria, the types of mortgages available, and how to apply. What is an expat mortgage? An expat mortgage is a mortgage designed for non-UK residents who want to buy a property in the UK. It can be used to purchase a residential property or a buy-to-let property. However, because expats don’t live in the UK, they may face more restrictions and requirements when applying for a mortgage. Eligibility criteria for an expat mortgage The eligibility criteria for an expat mortgage can vary depending on the lender. However, there are some common requirements that expats need to meet to be eligible for a UK mortgage: Stable income: Lenders want to see that the borrower has a stable income to make mortgage payments. This means that the expat must have a steady job or source of income that can be verified. Good credit history: A good credit history is essential when applying for a mortgage. Lenders want to see that the borrower has a history of paying their bills on time and managing their credit responsibly. Deposit: Most lenders require a deposit of at least 25% of the property’s value. This means that the expat must have a significant amount of cash to put towards the property purchase. Documentation: Expats need to provide documentation to prove their income, employment, and identity. This can include a passport, visa, employment contract, payslips, bank statements, and tax returns. If the expat is self-employed, they may need to provide their company accounts, tax returns, and business bank statements. UK bank account: Some lenders require that the expat has a UK bank account. This can be difficult for expats who don’t live in the UK, but some banks offer international bank accounts that can be opened remotely. Normally banks like HSBC can allow mortgage clients to service their mortgages from Hong Kong. Types of mortgages available for expats There are several types of mortgages available for expats, including: Fixed-rate mortgage: A fixed-rate mortgage offers a fixed interest rate for a set period, usually two, three, or five years. This means that the borrower knows exactly how much they

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How Can Expats Secure Expat Mortgages For The United Kingdom When Based Overseas?

How Can Expats Secure Expat mortgages For The United Kingdom When Based Overseas? As an expat, obtaining a mortgage in the UK may seem like a daunting task, but it is certainly possible. In this article, we will discuss the steps you need to take to get an expat mortgage in the UK. The eligibility criteria for expat mortgages in the UK vary depending on the lender. However, most lenders require that the applicant has a stable income, a good credit history, and a deposit of at least 25% of the property’s value. Some lenders may also require that the applicant has a UK bank account or a UK-based guarantor. Consider a specialist mortgage broker A specialist mortgage broker can help you find the best mortgage deal for your circumstances. They have experience working with expats and understand the eligibility criteria for expat mortgages in the UK. A broker can also help you navigate the application process and provide advice on the best lenders for your situation. Determine your eligibility Before you start the process of applying for an expat mortgage, you need to determine your eligibility. Some lenders require you to have a minimum income, while others may only lend to expats from certain countries. You may also need to have a certain level of deposit, usually around 25% of the property’s value. Additionally, some lenders may require you to have a UK bank account. Choose the right lender It’s essential to research and compare lenders before applying for a mortgage. Some lenders specialize in expat mortgages, while others may not offer this type of mortgage. Comparing lenders will help you find the best interest rates, fees, and terms for your mortgage. Once you have determined your eligibility, you must find the right lender. There are many lenders that offer expat mortgages, so you need to do your research to find the one that is right for you. Look for lenders that offer competitive interest rates, flexible repayment terms, and a range of mortgage products. Provide proof of income and employment To apply for an expat mortgage, you will need to provide proof of income and employment. This may include copies of your employment contract, pay slips, and tax returns. You may also need to provide evidence of your current address and proof of identity. To apply for an expat mortgage in the UK, you’ll need to provide documentation

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First Time Buyers And The 2021 Budget

The chancellor is expected to unveil a mortgage guarantee scheme that aims to help first-time buyers get their foot on the property ladder in next week’s budget. Rishi Sunak is attempting to incentivise lenders to provide mortgages to first-time buyers, along with current homeowners, with deposits as low as 5% on properties worth up to £600,000. The government will offer lenders the guarantee they need to provide mortgages covering the remaining 95%, with details set to be unveiled on Wednesday. The scheme will be subject to standard affordability checks, and is expected to launch in April. Low-deposit mortgages have virtually disappeared due to the economic impact of the coronavirus pandemic, the Treasury said as Boris Johnson announced he wanted “generation rent to become generation buy”. “Young people shouldn’t feel excluded from the chance of owning their own home and now it will be easier than ever to get on to the property ladder,” the prime minister said. Sunak’s mortgage guarantee scheme is based on the help-to-buy mortgage programme introduced by David Cameron and George Osborne, which ran until June 2017. The scheme was an attempt to kickstart the housing market following the 2008 financial crisis, and was estimated to have helped sell more than 100,000 homes in the UK. Sunak said: “Owning a home is a dream for millions across the UK and we want to help as many people as possible. “Saving up for a big deposit can often be difficult, and the pandemic has meant there are fewer low deposit mortgages available.” However, in an interview with the Financial Times, the chancellor said there was a need to “level with people” over the state of the UK economy, which was under enormous strain. “There are some people who think you can ignore the problem. And worse, there are some people who think there isn’t a problem at all. I don’t think that,” he said. “We now have far more debt than we used to and because interest rates … at least a month or two ago were exceptionally low, that means we remain exposed to changes in those rates.” In an attempt to support the UK’s economic recovery from the pandemic, Sunak has also announced measures to tackle unemployment as the furlough scheme comes to an end, including new funding and cash incentives for apprenticeship schemes. The temporary £20-a-week rise in universal credit payments is expected to be

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PORTFOLIO MORTGAGES FOR OVERSEAS LANDLORDS

Portfolio mortgages can simplify finances for overseas and expat landlords holding property in the United Kingdom, as that’s what they’re primarily designed for. With recent news regarding tax and stamp duty laws, overseas landlords are forever looking at methods to increase their investment income. Further changes in 2020 will lower the amount of tax relief a landlord can claim. For instance, overseas landlords won’t be able to offset interest as an expense like previous years. For landlords with multiple properties, or landlords aiming to grow their portfolios, a portfolio mortgage could be something to consider. Placing an entire portfolio under one mortgage can be beneficial, especially with a large number of properties. What is a portfolio mortgage? A portfolio mortgage allows overseas and expat landlords to place all of their buy to let mortgages under one mortgage. Portfolio finance is treated as a single mortgage account. Rather than having separate buy to let mortgage lenders for each property, the entire portfolio is undertaken by one portfolio mortgage lender, hence one monthly payment. The property portfolio is registered as a limited company and finances and expenditures are treated exactly the same as any other business model. Property portfolio financing is a term used for when a landlord has at least four properties. Technically, a portfolio could consist of two properties, but from a lender’s perspective, they would usually class four properties to be the bare minimum for a portfolio. There is no limit to how many properties landlords can hold but some lenders do have their own internal restrictions. If a landlord had ten properties on separate mortgages, then there would be ten monthly outgoings to multiple lenders. A portfolio mortgage allows landlords to solely focus on a single mortgage payment each month to a single lender. One monthly mortgage payment is perhaps easier to manage in comparison to multiple mortgage payments across the month. Lenders introduced portfolio mortgages to allow landlords to hold and manage their multiple buy to let mortgages with greater clarity. Rather than having multiple mortgage statements, portfolio mortgages allow for one monthly statement and one payment, simple. Landlords with portfolios don’t have to have a portfolio mortgage and it is entirely optional. Advantages of having a portfolio mortgage for overseas landlords All mortgages types will usually have positives and negatives. It’s difficult to explain whether or not a certain mortgage type will be advantageous to you without

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Shared Ownership Mortgages

In 2018, the average UK tenant spent 52% of their disposable income on rent and with rental payments so high it makes saving for a deposit to purchase a flat or home very difficult. There is however a scheme that provides an option for those who wish to own a property but do not have a large disposable income or savings. The Shared Ownership mortgage scheme allows applicants who are not able to currently afford to buy a property with the option to ‘purchase’ a share of a property whilst paying rent on the remainder. To be eligible for this scheme your household income must be £60,000 or less (£90,000 or less in London).  Also, you need to be approved by the Housing Association and often you can only buy in the borough that you currently live in. An Example You buy a 25% share in a £500,000 property for £125,000. Your deposit is linked to the value of your share of the property and would normally be 5%, so £6,250 in this example. You will then pay a mortgage on the amount of the property you own yourself along with rent on the remaining share, allowing you to build up some equity as the mortgage decreases and value (hopefully) increases.  You also have the option to staircase and purchase a greater share of the property overtime, allowing you to make larger contributions towards the mortgage as opposed to the rent and to own more of the property.  The rental and mortgage payments combined will generally be less than what you would pay for the full rent on the open market, and you will also have access to the equity that you have built up when you come to sell or remortgage. The disadvantages of using this scheme is that you will generally be paying a maintenance or service charge on the full 100% of the property as opposed to just the share you own and these costs can be quite high. Also, since you are a tenant in law, you could lose the property if you are unable to keep up with rental payments. Not all lenders offer shared ownership mortgages, so it is a restricted market but you have to factor in the service charge and rent into your affordability – so if you have debt or childcare costs you might struggle to find a mortgage. The Shared Ownership scheme is a great

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Should I Buy A UK New Build Property Or An Existing Property Already Built

A UK new-build property Should you buy a UK new build property or an existing property already built? You often see news in the press moaning that not enough new homes are being built in the UK and that there’s a vast shortage of  housing. In fact, government figures show 162,180 were built last year (2018). That isn’t enough to fix the housing shortage but it does mean most of us will come across a brand-new property when we are out house hunting. Here are some pros and cons of buying a brand sparkly UK investment property new home straight from the developer against an existing home already built and for sale on the market. Pro’s of buying a new build property in the UK Unpack and go – A new home is a blank canvas with fresh tiling, paintwork, kitchens and bathrooms. This means there should be very little, if anything, you need to do to it. You can simply unpack your belongings and start enjoying your new home. A boost to buying – For many first-time buyers a new build home is the only way they can get onto the property ladder. That’s because schemes such as Help-to-Buy and Shared Ownership are only available on the purchase of a new home. Incentives – Some developers will throw in extras in order to get a sale. This could mean paying your stamp duty or covering the cost of carpets. Modern living – Top-spec new builds have all the latest technology. Many offer ‘smart home’ features and open-plan layouts. Some also have shared services such as a gym or concierge. Design a home – Buy off-plan and you may be able have a say in the design. The builder may let you choose fittings and perhaps even the layout. Low bills – New build homes have to comply with the latest building regulations. This means they are far more energy efficient than older properties. Data from Energy Performance Certificates shows over 80% of new homes have the highest A or B ratings. That compares to just 2.2% of existing properties. Chain-free – As you’ll be the first owner you won’t have a chain of buyers above you. This can take away one of the main stresses of buying a home. Warranties – Most new builds come with a warranty, which you don’t get with an existing home. But, a warranty

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Getting A UK Mortgage With Foreign Income

Getting A UK Mortgage With Foreign Income If you are a British expat living and working overseas and you are paid in a non sterling currency, you may experience difficulty securing a mortgage on a UK investment property property or remortgaging with an existing lender. The positive news is that there are lender options for UK expats and foreign nationals when it comes to remortgaging or purchasing property in the UK. It is possible to get a UK mortgage from abroad using foreign currency or a combination of Sterling and a foreign currency, typically US Dollar or Euro. Foreign currency mortgages are available Despite the seemingly overly restrictive regulations and the influence they have over traditional lenders’ appetite for lending to those with foreign currency income, it is still possible to access the funds you need to purchase a property in the UK. The lenders who are willing to provide mortgage of this type often work through specialist brokers (intermediaries). Therefore, if you require a UK expat mortgage or UK refinance, then it is advisable to contact a specialist expat and foreign national mortgage broker like Premier Expat Mortgages. Proof of income There are still lenders that are prepared to provide UK mortgages to those paid in foreign currency. One of the biggest hurdles that you will face in the application process for a foreign currency UK mortgage is providing proof of your income. Documents Required The documents that you have to provide will vary from lender to lender, however as a rule of thumb you should expect to require: Your employer’s details A number of months’ payslips Information regarding the property you want to buy Personal details including proof of address A letter from an accountant and tax returns (if you are self employed) Documents in foreign languages The majority of lenders we work with will require the documents that you have to be written in English. However, there are some lenders that are willing to accept documents that are in a foreign language. Examples of this is if we use a Chinese bank to secure your mortgage and the client lives and works in China. The lender will have staff on hand that can read Chinese and so there will not be a need for the documents to be translated. In the event that your documents are in a foreign language, you will have to have them translated

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Do You Need Life Insurance Cover

What is life insurance? Life insurance can pay your dependents money as a lump sum or as regular payments if you die early whilst you are working and in employment. It’s designed to provide you with the reassurance that your dependents will be looked after if you’re no longer there to provide for them. The amount of money paid out depends on the level of cover you buy. You decide how it is paid out and whether it will cover specific payments, such as mortgage or rent. You may need to think about whether receiving a payout will affect any means tested benefits your dependents might otherwise be eligible for. There are two main types of life insurance: Term life insurance policies: run for a fixed period of time (known as the ‘term’ of your policy) – such as 5, 10 or 25 years. Some policies can run longer upon request from your life insurance company. These kinds of policies only pay out if you die during the policy. There’s no lump sum payable at the end of the policy term. A whole-of-life insurance policy: will pay out no matter when you die, as long as you keep up with your premium payments. What isn’t covered with life insurance? Life insurance usually only covers death – if you can’t provide for your family because of illness or disability, you won’t be covered. Some life insurance policies provide a terminal benefit, although these are not automatically granted. A terminal benefit will pay out on diagnosis of a terminal illness. Check the terms and conditions of your policy to see if you’re covered. Most policies have some exclusions (things they don’t cover). For example, they might not pay out if you die due to drug or alcohol abuse, and you normally have to pay extra to be covered when you take part in risky sports. If you have a serious health problem when you take out the policy, your insurance might exclude any cause of death related to that illness. You can buy other insurance products for these issues, which cover: long-term illness critical illness cover, or total and permanent disability. Do you need life insurance? If you have: dependants, e.g. school age children a partner who relies on your income, or a family living in a house with a mortgage that you pay – a life insurance policy can provide for

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Why Should Overseas Investors Invest In UK Property

Why Invest in Property in the UK? Why Should Overseas Investors Invest In UK Property? Bricks and mortar have long been seen as a prudent way to invest with the phrase ‘an Englishman’s home is his castle’ revealing just how deeply entrenched in the British psyche investment property is. The UK investment property business is a financially rewarding and exciting business which can produce great rewards. It can produce a consistent income, even once you have retired. Historically, property prices have been on a strong upward trend since the 1970’s despite some volatility during the recession and credit crunch . New research has revealed that houses prices have grown faster in the UK than any other Europeans country. In fact, since 1988 house prices have gone up by a staggering 333%. This represents an average rise of 12.3% per year. Many home owners have benefited from the rising housing market and have seen their property increasing in value over the years. No wonder property investment is now seen by many as the best way to provide long term financial security. Why should you invest in property NOW? 1. House prices will carry on increasing The UK still has a serious shortage of housing caused by a number of social and demographic factors. Unlike other European countries, our population is expanding significantly and it is predicted to reach 70 millions by 2020 compared to 63.7 millions today. More people living in the UK means that the demand for housing will carry on increasing therefore driving up the price of property for the foreseeable future. According to the Office of National Statistics there will be an annual shortfall of housing in the UK of over 100,000 properties each year for the next decade. This could mean a 1 million housing shortfall by 2025 if current trends continue. 2. High rental demand, high rental returns. A number of factors have combined to push up rental demand including an increase in immigration, more people living alone and rising house prices stopping first time buyer onto the ladder. This is excellent news for landlords who are finding that their Buy to Let properties are being let extremely quickly while their rental income keeps increasing. 3. Low interest rates Interest rates have been at an all time low for 6 years making borrowing increasingly cheaper. With mortgage payments currently at their lowest, and ever increasing monthly

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