Using a Broker For Expatriate Home Loans
It used to be a relatively simple process to obtain a mortgage as an expat or foreign national wishing to purchase in the UK. A number of High Street banks offered mortgages via branches in the key expat markets and others were happy to look at overseas earnings and take a view on the overall credentials of each case. That all changed with the credit crisis in 2008. Suddenly many banks started to withdraw from expat business in its entirety, or at the very least, would apply far more stringent criteria than they had in the past. Proof of income, country of residence and whether or not a prospective client was employed by a multinational company became far more significant factors in whether an expatriate could find a mortgage.
The best approach for expatriates wishing to organise a mortgage these days is to seek the services of an independent mortgage broker who not only understands the mortgage market but also the challenges facing expats and foreign nationals when seeking to purchase or remortgage say a buy to let property in the UK. All lenders differ in terms of their maximum loan to value, who they will lend to, country of residence, expat or foreign national, type of property purchase and the list goes on. In the UK, lenders will only deal through FCA regulated brokers for regulated business such as house purchase/remortgage or residential buy to let so, if you are taking out a regulated mortgage in the UK and FCA regulated mortgage broker who deals with expats is the best route to take.
Wesley Ranger, Technical Director of Brunswick International Finance has many years experience of dealing with expats and foreign nationals buying in the UK. He says “I often find that overseas clients are surprised at the level of scrutiny required to obtain a UK mortgage and indeed, it is not uncommon for a client to think they want a certain type of loan, only to find that when we analyse the facts in detail, there may well be a more efficient way to approach their borrowing requirements than they previously thought.”
“Our role is to utilise our experience, knowledge, independence and wide ranging contacts in order to come up with the most suitable and cost efficient arrangement for the client. Frankly, I don’t think many overseas clients have the time or inclination to track down some of the non-mainstream lenders such as private banks who can be extremely useful in the right circumstances. When it comes to the fees we charge, we firmly believe that we provide excellent value for money given the service we are able to provide.” For more information contact us here