Living, working and studying in the UK is a great experience. That is why people from all over the globe want to get a visa to the UK and live there with the hope of becoming a citizen, which is incredibly difficult. That said, the UK has one of the highest concentrations of expats. If you are an expat living in the UK, you may be tired of paying rent every month, so you may be thinking about purchasing residential property to live in for the duration of your stay. This is not only a cost effective option, but also a great investment since property prices in the UK are always rising fast, so the value of the property would be much higher than the purchase price when the time comes to go back home.

If you are looking for a rental property to supplement your income, you will find many lenders wiling to finance your purchase. The UK, and the City of London in particular, has one of the highest rental rates in the world. You can make a decent income renting property. In fact, the rent may be enough to pay your monthly installment and leave a decent amount of money in your bank account. Whatever the case, you have to find the best lender when looking for UK mortgages for expats.

Mortgage Requirements

When applying for any type of mortgage, lenders normally look at three key factors, including; your income, credit rating and amount of money you have for the downpayment. Most lenders would also consider the legal status of the applicant. Expats are usually treated differently from citizens. The good news is that mortgage lenders have made changes in their loan approval processes. They are now more willing to lend to expats. After all, real estate is a unique investment that can never be moved elsewhere. If an expat client goes back to their home country and stops making payments, the property will simply be liquidated and the proceeds used to pay off the outstanding balance.

If you have huge savings that you are willing to pay as deposit when buying a property, you can have your mortgage approved quickly regardless of where you submit your mortgage application. Paying a huge deposit reduces the risk exposure for lenders. It will also reduce your interest payment over time. Furthermore, you will be able to pay off your loan well in advance.

The terms and conditions for expat mortgages should not be different from regular loans, but some lenders usually quote different terms and conditions. Therefore, you should take your time to review the terms and conditions that come with different mortgage products before making a decision.