Expatriate Mortgages – UK Citizens Buying Property Overseas

Many UK expatriates find that they need to buy property while they are living overseas, either to give themselves a place to live, or to serve as an investment. If this is the situation you are in, you have a couple of choices when shopping for expatriate mortgages. You can either apply for an expatriate mortgage through a UK lender, or you can apply for an overseas mortgage from a lender in the country where you are living.

Applying with a Local Lender

One benefit of applying with a local lender is the fact that you will not have to travel to Britain to sign documents or apply for the mortgage. If you are far from home, this travel expense becomes significant. For this reason, many expatriates living in exotic locations find it easier to work with a local lender, in spite of the fact that the mortgage itself may be more expensive.

Applying with a UK Lender

Applying with a UK lender also has some advantages and disadvantages. While the mortgage will typically be cheaper, you will have to travel to the UK at some point to secure the loan. You may find that getting a mortgage from a UK lender makes it easier to understand the terms and conditions of the loan, as the loan will have to follow UK lending guidelines, which may not be present in the country where you are living.

Which Choice Is Best?

The answer to this question is not easy. What is best for one expatriate may not be best for another. While these two types of mortgages are extremely different, they both carry benefits and risks.

Getting a mortgage in another European country where you are living and working is probably the cheapest option. However, if you are in Asia or Africa, you may not find this to be the case due to the cost of travel. An independent mortgage broker in the UK can help you determine the best course of action.

You will also find that many of the lenders that are based in the UK are in partnerships with lenders in other countries where Britons tend to live. You may be able to get an overseas mortgage while still using a UK lender. This way you can get the mortgage with a UK lender without having to travel back and forth from your new home to Britain. Obviously there are many mortgage options to choose from when purchasing property overseas. Having a trusted mortgage advisor working with you will make the choice much more clear.