RESIDENTIAL MORTGAGES

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 Buying your first home is a significant decision. It can also feel overwhelming. However, our first-time buyer mortgage guide aims to make the process easier. We encourage you to read the entire guide before deciding. This will provide you with essential knowledge. Should you have any questions or require further assistance, please do not hesitate to contact us. We are here to help! 

Buying your first home is an exciting and daunting experience. It marks a major life milestone. However, understanding first-time buyer mortgages can be difficult.

That’s why our first-time buyer mortgage guide exists. We simplify the process, answer common questions, and provide essential information. You will find everything you need to make a confident decision.

Read on if you’re ready to begin your homeownership journey. We’ll guide you through each step of the first-time buyer mortgage process.

If you need additional help along the way, don’t hesitate to contact us.

If you’ve never owned a property before, then congratulations! You are considered a first-time buyer. That’s right – this includes single people and couples who have yet to purchase a home. 

First-time buyers can take advantage of mortgage terms that those not considered first-time buyers don’t qualify for.

Schemes like Shared Ownership and other lender-based schemes are also designed to help buyers get onto the property ladder.

To make the most of this opportunity and begin your homeownership journey, it’s essential to research all possible options before making any decisions.

Some lenders offer a first-time buyer mortgage designed specifically for first-time buyers. This type of loan may have lower interest rates, fewer upfront costs, or more flexible terms than other mortgages.

However, even if a lender does not have a special first-time buyer mortgage, they will still lend to any first-time buyer who meets their criteria.

If you are struggling to raise a deposit or do not have sufficient income, specific schemes allow a family member to assist.

Benefits for the first-time home buyer:

When you purchase a property, a deposit called a ‘down payment’ is required. First-time buyers often lack the savings for a large deposit. However, some lenders offer a lower deposit minimum. Therefore, you may access 95% loan-to-value products. This means you need only 5% of the purchase price from your own funds. As a result, homeownership becomes more affordable and accessible for first-time buyers. Nevertheless, remember you will still need money for other costs.

As a first-time homebuyer, you have an advantage over other buyers. This is because there’s no chain involved in your case.

A mortgage chain occurs when you buy a property, that owner buys another, and so on. Consequently, everyone must complete it at the same time. The longer the chain, the more complex it becomes. Everyone must align their mortgages and legal work simultaneously.

Because you are first in the chain, your offer becomes more attractive. This is compared to offers from homeowners needing to sell their existing property.

Therefore, being a first-time buyer benefits both you and the seller, especially for a speedy sale!

Lenders are always considering ways to help first-time buyers. Some innovative mortgages offer options like gifted deposits from family or friends. Additionally, gifted equity can be used as a deposit. Guarantors can also help cover income shortfalls.

Lenders commonly offer Joint Borrower Sole Proprietor (JBSP) mortgages. JBSP mortgages allow family or friends to assist with deposits or monthly payments. They do this without being named on the property.

This means the first-time buyer gets first-time buyer stamp duty incentives. Meanwhile, the family member assisting avoids any tax complications.

4. Government assistance: 

The Government has always sought ways to help first-time buyers get on the property ladder. However, the popular ‘Help to Buy’ scheme has now been withdrawn. Despite this, there are still some options available.

These include schemes for council and housing associations via ‘right to buy’. Schemes like ‘shared ownership’ and ‘help to build’ are also available.

Typically, you will need at least 5% of the property’s cost for a deposit. For instance, if the property costs £150,000, you will need a deposit of £7,500 (5%).

However, a larger deposit can be beneficial. For example, a deposit greater than 5% gives access to more mortgage lenders. This could potentially result in a lower interest rate.

Therefore, consider increasing your deposit to improve your mortgage options.

Family gifted deposits, for instance, are when your parents “gift” you the deposit to buy a home.

Moreover, some lenders allow friends or family to “invest” in your property. Up to six people can help boost your deposit or salary.

This support enables you to purchase a higher value property and makes it more affordable.

The average age of a first-time buyer in the UK is increasing. It has steadily risen over the past few years. First-time buyers face a competitive and expensive housing market.

Many cannot purchase a home until their thirties. This is due to high student debt, property prices, and tight mortgage lending criteria. Affordability is a significant barrier for many buyers.

Furthermore, first-time buyers need to save longer to build a deposit. This deposit is necessary to qualify for a mortgage. Consequently, buying a home becomes a delayed dream for many.

There are a range of schemes available to help first-time buyers to get onto the housing ladder. The schemes can assist with either a shortfall of deposit, a shortfall of income for affordability, or both.

Also known as “Part-buy, part-rent” this is where you purchase a share of the value of the property you are interested in. The property is usually purchased from a local authority or housing provider. If buying a new build, you will be expected to purchase between 10% and 75% of the property’s value and rent the remainder.

After six months of ownership, you can increase your share of the property through a process called ‘staircasing’. You can buy in increments of 1% as affordability allows. The cost of additional shares is subject to market value at the time you buy.

When discussing mortgages, you might hear the term ‘Loan to Value’ (LTV). This means the amount borrowed to buy your home (the loan) compared with the mortgage lender’s property valuation.

For example, suppose you buy a home for £200,000 and put down £20,000 (10%) as a deposit. You would then have a mortgage of £180,000. Therefore, your LTV would be 90% because the amount borrowed (£180,000) is 90% of the home’s value (£200,000).

The lower the LTV, the lower your interest rate is likely to be. This is because the lender takes less risk when you use more of your own money.

High-street lenders often offer the lowest rates, especially with a larger deposit. However, the interest rate is higher with a smaller deposit or if you use a scheme.

An independent mortgage broker can help. They will search for many high-street lenders and specialist lenders. Consequently, this ensures you get the best possible mortgage solution for your needs.

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. 

Mortgage lenders often consider first-time buyers with credit issues at higher risk. However, it is still possible to get a mortgage. The lender may require a higher deposit or interest rate for borrowers with poor credit.

Credit issues include missed credit card payments, defaults, or County Court Judgments. The more historic the issue, the less it affects the mortgage. For example, a credit issue over six years old will usually be ignored. Very competitive rates are available for a credit issue over three years old.

Arranging a mortgage is still possible for people with recent credit issues. However, a higher rate will be charged, and a higher deposit will be needed.

An interest-only mortgage lets buyers pay only the interest monthly, not the principal balance. Consequently, this can help first-time buyers by keeping their monthly payments lower. It makes home ownership more affordable in the short term.

However, first-time buyers should know they must repay the mortgage in full at the end of the term. Thus, they need a realistic strategy for repayment.

Lenders typically offer interest-only mortgages to those with very high incomes or deposits.

An alternative is to take the longest mortgage term available. Many lenders offer terms of up to 40 years. Although you will pay more interest over time, longer terms mean lower monthly payments. Therefore, this may be more affordable.

Finding a first-time buyer mortgage advisor can greatly help with navigating the home-buying process. A first-time buyer mortgage advisor is an experienced professional. They help first-time buyers understand their options and find the right mortgage that meets their needs.

They provide advice on the types of first-time buyer mortgages available. Additionally, they help compare different lenders and products. Often, they can offer advice on improving credit scores or saving for a larger deposit.

A mortgage advisor can also aid in the home-buying process. They help buyers submit their applications and understand legal documents. Thus, a mortgage advisor is invaluable to first-time buyers.

By working with a mortgage advisor, first-time buyers gain knowledge and confidence. Moreover, they increase their chances of finding a suitable mortgage.

• You only have a small deposit.
• You are self-employed or have adverse credit.
• You are struggling with affordability.
• You would like the most competitive deal.
• Other needs, such as complex property.

One of the first steps in getting a first-time buyer mortgage is to check your credit score. Additionally, reviewing your full credit report is crucial. This helps you understand your creditworthiness. Moreover, lenders use this information to decide if they will approve your loan. Therefore, it’s essential to know your financial standing. If needed, a mortgage adviser can help you understand your credit report. 

It’s essential to shop around for first-time buyer mortgage options. Furthermore, compare different lenders to find the ideal terms and rates. Don’t just settle for the first offer you come across. Instead, make sure to take the time to research. By researching first-time buyer mortgages, you can ensure you’re getting the right deal for your needs.

Before looking for first-time buyer mortgages, first-time buyers should make sure they know their budget and how much they can realistically afford to pay in monthly mortgage payments. This will help narrow down first-time buyer mortgage options and help first-time buyers avoid taking on more debt than they can handle.

Once first-time buyers have an idea of their budget, and what type of first-time buyer mortgage they’re looking for, it can be beneficial to get pre-approved by a lender. Getting pre-approved ensures first-time buyers that their first-time buyer mortgage will be approved (if their credit score and other financials meet the lender’s requirements).

A first-time buyer mortgage advisor offers valuable advice during the home-buying process. They help compare different first-time buyer mortgages. Additionally, they provide advice on improving credit scores. Therefore, a first-time buyer mortgage advisor is invaluable for first-time buyers’ homeownership journeys.

These tips help first-time buyers navigate the home-buying process and find the right mortgage. With a bit of research, preparation, and help from a mortgage advisor, first-time buyers can find the perfect mortgage for their needs.

Mortgage affordability calculators are everywhere these days. Why not try our calculator to see your borrowing potential?

Lenders have different affordability calculations. They change these calculations regularly. Some lenders accept a missed utility bill payment from two years ago. Others might reject your application for this reason.

Some lenders consider CCJs but need to know the amount, purpose, and reason. Using a qualified independent mortgage broker saves you time and stress.

As a rule of thumb, employed clients with 12 months’ work history and clean credit reports can expect to achieve 4.5 times their salary.

The most important thing is knowing how much it will cost each month. Make sure you can afford it.

Considering a budget before looking for a property is a good idea. Think about how much you can afford to pay every month. Remember to cover everyday costs like gas, electricity, and food.

Apart from your monthly mortgage payments, there are other associated costs when buying a home, either upfront or ongoing.

• Solicitor or Conveyancing Fees.
• Search and Land Registry Fees.
• Mortgage Arrangement and Valuation Fees.
• Removal and Moving Costs.
• Buildings Insurance.
• Initial Furnishing and Decorating Costs.
• Stamp Duty (Land and Buildings. Transaction Tax in Scotland, or Land Transaction Tax in Wales).

First time buyers should research the market and lenders, determine how much they can afford, investigate different mortgage options, understand associated fees, and get pre-approved before house-hunting to secure a first time mortgage. With these steps taken, first time buyers can confidently begin their journey to homeownership.

WHO IS ELIGIBLE FOR FIRST TIME BUYER MORTGAGE?

To be eligible for a first time buyer mortgage, you must generally not have ever owned property before. Some lenders may class you as a first-time buyer if you have not owned a property for many years. 

HOW MUCH MORTGAGE CAN I AFFORD FIRST TIME BUYER?

Your mortgage affordability depends on your income, credit score, and other financial factors. A good starting point is to calculate how much you can afford monthly for a mortgage payment by subtracting your expenses from your income. Speak with a mortgage advisor to find out what type of loan you qualify for and get an estimate of how much you can borrow.

HOW TO GET A MORTGAGE FIRST TIME BUYER?

To get a mortgage as a first-time buyer, research different mortgage options. Additionally, compare various lenders.Furthermore, get pre-approved to streamline the process. Also, working with a mortgage advisor is essential.They can help you find suitable terms for your needs.

CAN A FIRST TIME BUYER GET AN INTEREST ONLY MORTGAGE?

Yes, a first-time buyer can get an interest-only mortgage. However, they will need to meet certain criteria to qualify for one. A longer-term repayment mortgage may be more suitable.

WHAT MORTGAGES ARE AVAIABLE FOR FIRST TIME BUYERS?

First-time buyers can access a range of mortgage products, such as fixed rate, variable rate, tracker, and offset mortgages. There are also special schemes that can help first-time buyers get on the property ladder. Each option has its advantages and disadvantages, so it is essential to research the different types of mortgages before deciding.

CAN A FIRST TIME BUYER GET A SELF BUILD MORTGAGE?

Yes, first-time buyers can obtain a self-build mortgage to finance the construction of their own home. Some lenders have specific products designed for this purpose and may offer incentives such as cashback or discounts on legal fees. There is also a Government scheme called ‘help to build.

 Don't let the thought of moving house and changing your mortgage overwhelm you. Read our comprehensive guide on the subject and contact us if you need any help. We're here to make the process as easy and stress-free as possible. 

 This article covers the process of moving house and how it affects your mortgage. We’ll explain all you need to know, from understanding your rights under your current loan agreement to what happens when you move home and change lenders. Whether you’re a first-time buyer or an experienced homeowner, we can help make the transition smoother. Read on to find out more: 

1. Understand your rights under your current mortgage agreement.
2. Get professional advice from a mortgage broker.
3. Make sure you access the ideal rate and most suitable product.
4. Consider the costs involved – the cost of removal vans should be factored in too.
5. Decide if you want to change lenders or stay put.
6. Calculate how much money you need to secure a new mortgage – staying put will most likely be cheaper, particularly if you can ‘port’ your existing product to avoid early repayment penalties – this is where you can take your existing rate over onto the new mortgaged property with the same lender, to avoid paying penalties

When you move home and change your mortgage, it is important to understand your rights under the existing loan agreement. This includes knowing whether or not you can change lenders without penalty or if there are any conditions attached to changing lenders. You should also be aware of any associated fees you may have to pay and ensure that the new loan terms are agreeable to you. Your legal rights will depend on your loan type and your lender. Understanding these aspects is essential before changing to a different mortgage lender. It would be best if you spoke with a professional experienced in dealing with such matters. This will iron out any issues early on in the process.

When it comes to selecting a mortgage, doing research is essential. First, it’s important to compare the different lenders and products available to find the right deal. Websites belonging to various lenders may feature reviews from past customers. In addition, it’s worth checking to see what other clients have experienced.
The fees associated with different mortgage products should also be considered when deciding which lender to use. The terms associated with each product should also be carefully considered before you sign any documents or enter into any agreements.

Speaking with a mortgage broker who can provide advice and guidance on the right mortgage product is highly recommended.

This will help you avoid any pitfalls further down the line.

If you have opted to go with a different lender and have redeemed your old mortgage, your new mortgage lender will write to you to confirm your monthly payments. However, it may be the case that no payment will be due for several weeks. 

You may still pay double for the first payment. However, you could be charged slightly more for the first month. This is because some lenders add the shortfall to the end of the mortgage, meaning you make an extra payment that has been added on. Either way, the additional weeks without payment will be accounted for, so there is no need to worry.

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. 

Our advisers will:

• Work out what you can afford and what it will cost to redeem your old mortgage.
• Search our panel of over 170+ lenders to find the most competitive deals.
• Recommend which mortgage ideal fits your needs and circumstances
• Help you with the entire application process from submission to completion.

You may wish to consider reducing the size of your mortgage by paying some of it off. You can do this before committing to a new product without penalty if, of course, your current rate is redemption free.

Perhaps you’d prefer to keep your savings intact and instead take out an offset mortgage – the interest charged on the loan reduces as you forfeit any interest due on your savings.

This will reduce the overall term and the loan will be paid up sooner, saving you an attractive sum of money.

You will need to consult with a Connect Mortgages who will search for a lender who offers this facility.

We can still assist if you need to move home but are struggling to sell your existing property. Many lenders will allow you to let out the property you currently live in on a ‘consent to let’ agreement. The generated rental income can be used to repay the existing mortgage.

Your affordability will be calculated by factoring in both the existing and new mortgage payments. Lenders will only consider the rental income from your existing residential property if this has been in place for some time and can be evidenced via tax returns.

Raising enough deposit

If you’re struggling to raise the deposit for a new property, we may be able to switch your borrowing over to a ‘Let to buy’ mortgage. Again, there are specialist lenders who will happily accommodate this type of transaction. Put – you rent out the existing property and change the loan to a Buy to Let mortgage – release further equity to use for your deposit on the new property – this will be on a standard residential, regulated mortgage.

Staying where you are

If it’s a larger property you need, you could seek planning permission and add an extension. You can fund the project by taking additional borrowing, known as a further advance. Again this will come down to affordability – after all, your monthly payment will increase.

Are you moving house or extending the existing one? These are significant decisions that kay Global Financial Services can help you make sensibly. They are here to help you prepare for that next chapter in your life. So dream big, and we’ll help you achieve those dreams!

CAN I MOVE MY MORTGAGE TO ANOTHER HOUSE?

Yes, it is possible to move your mortgage from one house to another. This process is known as a “portable” mortgage. You will need to qualify for the new loan, and you may incur additional fees or costs associated with the transfer. Your lender can provide more details on what is involved in transferring your mortgage to a different property.

CAN YOU MOVE HOUSE ON A FIXED TERM MORTGAGE?

Yes, you can move house on a fixed term mortgage. However, depending on your lender’s terms and conditions, there may be additional costs associated with transferring the mortgage to another property. You will also need to qualify for the new loan and ensure that all of your financial obligations are met in order for the transfer to take place.

 Are you looking to remortgage your home? If so, you must understand the process and determine if remortgaging is right for you. To help you with the decision-making process, we have created a comprehensive guide that outlines all the steps involved in remortgaging. In addition, our guide will provide insight into the various benefits of remortgaging and how to go through the process smoothly. 

1. Remortgaging is a great way to make the most of your current property’s equity.

2. It allows you access to the money you have tied up in your property.

3. With a remortgage, you could even consolidate your debts.

4. If you remortgage to another lender, you may have access to a lower interest rate and reduce your monthly payments.

5. Alternatively, you could take advantage of the current lender’s switching process.

Whatever your financial goal, remortgaging could be the right solution for you.

We have compiled an extensive guide to enable you to make an informed choice about whether a remortgage is right for you. Our guide covers every aspect of remortgaging, from preparation to the things you should consider when selecting a new lender. Also, we provide valuable advice and guidance to help with your mortgage journey.

Whatever your financial goals are, our guide can help you navigate the remortgaging process confidently. Start exploring today!

A remortgage is where a homeowner takes out a new mortgage on their property, replacing their current loan agreement with one from a different lender. This typically happens if the mortgage borrower wants to switch lenders or take advantage of better terms than those offered by their existing lender. 

Sometimes, remortgaging can free up cash to fund home improvements, debt consolidation, or other investments.

The remortgaging process involves evaluating your finances, researching lenders and loan types, completing paperwork, and closing on the new loan.

There are many reasons to consider remortgaging. One of the primary benefits of remortgaging is that it can give you access to more money or lower monthly payments. In addition, by switching lenders and taking advantage of better interest rates, you could save thousands of pounds over the loan term. 

Additionally, remortgaging can free up cash from the equity in your home to cover other expenses or invest in future opportunities. It is essential to weigh the pros and cons when considering this type of transaction. 

You need to factor in the fees you will pay to the new lender and any broker fees that apply. That said, for many homeowners, remortgaging remains the most cost-effective option.

Remortgaging can provide numerous benefits. By switching to a more competitive loan rate, a remortgage can help cut down on monthly payments and save on the interest that accrues over the entire term of the mortgage. Remortgaging could also offer access to equity in your home, allowing you to use the funds for other financial aspirations or investments. 

Here are some of the critical benefits of remortgaging:

Remortgaging can help you save money over the life of your loan by taking advantage of lower interest rates offered by lenders. This can result in significant savings for a homeowner and could make monthly payments far more manageable

When you remortgage, you can free up some of the equity in your home to use for other financial commitments or to carry out home improvements.

If you have other high-interest loans such as credit cards, remortgaging can help you consolidate those into one loan with a lower interest rate, making payments more manageable and reducing the overall debt quicker.

Depending on affordability, you could take the mortgage over a shorter term. This will save on the amount of interest you pay overall.

Remortgaging can be a great way to save money and access additional funds, but weighing the potential benefits and drawbacks of changing lenders is essential. It’s also a good idea to speak with a financial advisor or mortgage broker before making any decisions.

Remortgaging involves evaluating your finances and researching different lenders and loan types to obtain a loan with more competitive terms. The borrower must complete the necessary paperwork, provide the required documents, and close on the new loan. 

Depending on which lender you choose, there may be additional costs associated with remortgaging, for example, exit fees, upfront lender fees, and broker fees. Therefore, reviewing these carefully before proceeding with a remortgage is essential. 

Any outstanding balance on the existing loan must be factored into the cost calculation. With any applicable early repayment charges, this balance must be cleared before the new loan is set up.

The right time to remortgage is when you can get a better interest rate than the one you are currently paying. This could mean that either market interest rates have been reduced or that another lender offers more competitive terms for your circumstances. Additionally, if your financial situation has improved since taking out your initial mortgage loan, this could help you secure a better rate. 

Finally, a remortgage could be an option if you want to access the equity in your home or consolidate any debts. Ultimately, it is essential to research and compares different options available before deciding on the ideal course of action.

It is possible to remortgage before the end of your loan term; however, this can often involve additional costs and fees. Depending on your lender, you may be required to pay an early repayment fee or a penalty for switching lenders before the end of your loan term.

If you’re fortunate enough to have funds put aside, you may wish to clear some of the balance off before you take the loan to another lender. It’s worth speaking with a financial advisor or mortgage broker in the first instance before making any concrete decisions.

The process of remortgaging usually takes around 12 – 16 weeks from the point of application, although this can vary depending on your circumstances. Delays in obtaining documents or any additional paperwork needed by the lender could extend the timeline.

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. 

Remortgaging usually takes around 4 – 8 weeks to complete, the timeline is dependent upon your circumstances, the lender’s process, and the conveyancing process – this seems to be taking longer nowadays, especially where searches reveal hidden complexities with the property.

The journey begins with your broker. 

They will source the most competitive rate, then apply to the most suitable lender. You will be asked to provide evidence of your income, any existing debts, and other financial commitments to support your application. Once the lender’s surveyor has conducted a valuation of your property, the application will go to offer. 

 In most cases, mortgage offers are valid for three months, although it can be up to six months. If you indicate that you’re happy to proceed, the legal representatives will pick things up from there and carry out the necessary searches with the land registry.

• Start by considering your reasons for remortgaging and ascertain your available options.
• Engage the help of a professional adviser – they will calculate the viability of a remortgage versus a product transfer with your existing lender.
• Don’t forget to check if any early repayment charges apply – of course, it may be in your interest to pay these and then move on to a better rate. Again, your broker will help calculate the cost-effectiveness of early coming out of the tie-in period.
• Remember to read all documents carefully and seek legal advice, if necessary, before agreeing to any mortgage terms or conditions.
• Finally, ensure you keep up with the monthly payments – missing payments will be detrimental to your credit file and could ultimately lead to repossessing your home.

Remortgaging is a great way to save money on your mortgage and take advantage of competitive rates. However, it’s essential to be aware of the process and costs involved before you make any decisions. Taking professional advice from an experienced mortgage adviser can help you navigate the complexities of a remortgage and ensure that you get the right possible deal to suit your needs. When done correctly, you are remortgaging can be a worthwhile and rewarding exercise.

DO I NEED A SOLICITOR TO REMORTGAGE?

If you’re borrowing more on your existing mortgage or switching products, with the same lender (known as a product transfer) then there are no legal charges involved. However, if you move to a new rate or a different deal with your current lender, or move to an entirely different lender, then you will need to use a solicitor or conveyancer. You can use the lender’s conveyancer if this service is included with your chosen product, or you can appoint your own.

WHAT HAPPENS WHEN YOU REMORTGAGE?

When you remortgage, your existing mortgage will be replaced with a new one. It may involve changing lenders, or simply switching to a different deal with your current lender. Your new mortgage can usually offer more favourable terms such as a lower interest rate or more flexibility.

CAN I REMORTGAGE WITH BAD CREDIT?

Yes, it is possible to remortgage with blemishes on your credit file. However, you may have difficulty finding a lender, willing to offer favourable terms. It’s also likely that the interest rate will be higher.

Having a poor credit history doesn’t necessarily mean that you won’t get a mortgage – many specialist lenders assess on a case-by-case basis.

Contact a us in the first instance if you’re concerned about your credit history.

CAN YOU REMORTGAGE TO PAY OFF DEBT?

It is possible to remortgage and pay off the debt by borrowing more, if there is sufficient equity in the property. It pays to explore all options before taking additional borrowing to consolidate your debt – after all this would mean taking the debt over a longer period in line with the chosen mortgage term.

CAN I REMORTGAGE TO BUY ANOTHER HOUSE?

Yes, a remortgage can be used to fund the purchase of a second property. Depending on your circumstances, you may need to release equity or use savings to make up the difference. It’s important to speak to an experienced mortgage advisor before making any decisions to purchase additional properties – this could result in you paying stamp duty.

WHAT HAPPENS ON REMORTGAGE COMPLETION DAY?

The funds from the remortgage loan are released and your existing mortgage is paid off in full. The new lender then becomes responsible for collecting future payments under the new agreement. The new deal will become effective from the first monthly payment.

DO YOU NEED A DEPOSIT TO REMORTGAGE?

No, a deposit is not required to remortgage. In most cases, remortgaging can be done without having to access any savings. Instead, you can use the equity that has built up in your property over time.

 Are you self employed and concerned about your ability to obtain a mortgage? Read our complete guide to learn more about mortgages for the self employed. If you need any help or have questions, please don't hesitate to contact us! We are here to help you find the right self employed mortgage for your needs. 

Are you self-employed and looking to obtain a mortgage to purchase or re-mortgage your home? Mortgages for the self-employed can be tricky to navigate, but with the correct information and guidance, you can make the process easier.

This guide will help you understand what is involved in getting a mortgage while you’re self-employed and provide resources for making informed decisions about your financial future. We’ll also offer tips and advice on choosing the right mortgage product. So read on to learn more!

What is a Mortgage for The Self Employed?

The mortgage will ultimately be the same apart from the underwriting. Mortgages for self-employed persons are considered riskier than traditional mortgage loans.

This is because they do not have the same income verification and security as a salaried employee, so lenders may require additional documentation to approve the loan.

Mortgages for self-employed persons may require a larger down payment and be restricted to a lower ‘loan-to-value’ in line with the lender’s appetite for risk.

Self-employed individuals who have been in business for two or more years and meet the lender’s income and credit requirements are usually eligible to apply for this type of borrowing.

Self-employed applicants need to provide evidence of their income, such as tax returns or business bank statements, along with a personal guarantee if requested by the lender.

Those who have recently started their own business can still be eligible for a mortgage as long as they can show a steady stream of income and sufficient assets to cover the monthly mortgage payments.

Self-employed applicants should be prepared to provide the necessary documentation to their lender.

Self employed mortgage lenders will typically require self-employed applicants to provide the same documentation as any other type of mortgage.

• Bank statements and/or tax returns from the last two years
• Profit and loss statements from the last two years
• Business debt schedules
• A personal guarantee
• A larger than usual down payment.

Additionally, self-employed applicants may be asked to provide other documentation as the lender requires.

When self-employed, you must assess your financial situation to understand what kind of mortgage you can afford. First, check your income over the past two years and determine how much of a monthly payment you could handle.

Different mortgages are available depending on your financial situation. Contact a mortgage specialist to learn more about mortgages for self-employed persons and which fits your ideal needs.

Gather all the necessary documents, such as tax returns, profit/loss statements, bank account records, and other financial documents, demonstrating your self-employment income over the past two years.

Reach out to banks or lenders who offer self employed mortgages and discuss what kind of loan you need. They can help determine how much you can borrow according to your current self-employment revenue and debt load.

Self-employed borrowers must meet specific criteria when applying for a self employed mortgage. This includes providing a self-assessment tax return, proof of self-employment income, and other documents to prove self-employment status.

Once you’ve gathered all the necessary documentation and discussed your self employed mortgage options with lenders, you can get pre-approved for a mortgage. Getting pre-approved will give you an idea of how much house you can afford and what loan terms are available.

Remember that different banks or lenders may offer better self employed mortgage rates or more favorable loan terms than others. Be sure to shop around before committing to any one lender or bank

After finding a mortgage suited to you as a self employed person, you can complete the application process. This includes providing the necessary documents, signing paperwork, and submitting the application to the lender.

During underwriting, self-employed borrowers must be prepared to provide additional verification of self-employment income and other documents indicating their self-employment status. Staying organized will help make the process as smooth as possible.

Once all paperwork is completed and approved, you’ll be able to close on your self employed mortgage loan and begin shopping for a home!

Follow these steps to successfully secure a mortgage for you as a self-employed mortgagor so you can start the process of becoming a homeowner without too much delay. With the right mortgage lender and proper preparation, you can make your dream of homeownership a reality.

When self-employed, the amount you can borrow for a mortgage depends on your self-employment income. 

Generally, self-employed borrowers must be able to provide proof of self-employment income over the past two years. Banks and lenders will look at things like credit score, debt load, and assets when considering a mortgage.

The amount self-employed borrowers are eligible to borrow depends on their individual circumstances. 

Typically, self-employed borrowers can expect to be able to borrow up to four times their personal income or self-employment income. However, this will vary from lender to lender. 

Self-employed individuals seeking a mortgage to research different lenders and their specific requirements need to find the right self employed mortgage option that suits their needs.

When self-employed individuals apply for a mortgage, they typically need to provide evidence of their income over the past two years to qualify. This proof may include copies of filed tax returns, pay stubs, and profit & loss statements that accurately reflect the self-employed individual’s financial situation.

It is essential to verify the self-employed individual’s income to assess their ability to repay the mortgage loan. Lenders may also consider self-employment stability by looking at how long an individual has been self-employed or if they have changed professions frequently over the past two years. Providing these documents can be a crucial part of applying for a self employed mortgage

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. 

As mentioned above, lenders typically require at least two years of verified self-employment accounts to assess their eligibility. Again, this ensures that self-employed borrowers have a consistent income and can meet their mortgage repayments.

Lenders will also consider self-employed applicants who have been self-employed for less than two years. Still, they may require additional verification or proof of income and take a closer look at the applicant’s financial history.

In some cases, lenders may also request that self-employed borrowers provide up to 5 years of verified self-employment accounts to assess their eligibility. 

This may depend on the self-employed borrower’s financial history and the lender’s criteria. It’s right to discuss your individual circumstances with a mortgage adviser before applying for self employed mortgages, so you know what documents will be required.

For self-employed individuals looking for a mortgage, it can take time to find the right lender.

Fortunately, some mortgage lenders specialise in helping self-employed individuals obtain mortgages. Our company has over 170 self-employed lenders available to help you secure your dream home.

Our self employed mortgage lenders understand the unique financial situation self-employed individuals face and provide tailored mortgage solutions to suit their individual needs.

When considering a mortgage for you as a self-employed person, it is essential to consider your self-employment income’s stability. Please check your income over the last two years and carefully evaluate any fluctuations or changes in income before applying for a self employed mortgage.

If you are self-employed and considering a mortgage, it is essential to seek advice from a self employed mortgage advisor with experience in this lending area. They can help guide you through the application process and ensure you get the right deal for your circumstances.

For you as a self-employed mortgagor, pre-approval is an essential step in the process. It will indicate how much you can borrow and provide peace of mind that your application will likely succeed.

As self-employed borrowers, it can be challenging to provide the same level of proof required for a standard mortgage application. Therefore, many mortgage lenders offer more flexible approaches when assessing self-employed income, such as looking at bank statements or HMRC self-assessment tax returns instead of audited accounts.

Mortgages for the self-employed are subject to several different rules and regulations. Hence, it is essential to ensure that you fully understand these before applying for a self employed mortgage. An experienced mortgage advisor will be able to provide you with guidance on the latest self employed mortgage regulations and ensure that you are compliant.

When taking out a self employed mortgage, it is essential to have an exit strategy in place. Make sure you consider any potential risks or changes in your self-employment income that could affect your ability to maintain payments on the loan in the future. It is also essential to consider how long you plan to stay in the property and if any flexible mortgage products could suit your circumstances.

When taking out a mortgage as a self-employed person, it is ideal to have a large deposit saved up. This will help reduce the amount of borrowing needed and make you more attractive to mortgage lenders. Saving as much as possible will also help reduce your monthly payments and leave you with more disposable income.

Please give me some advice to consider when self-employed before you apply. With the right mortgage lender and a bit of preparation, self-employed borrowers can still access competitive mortgages that suit their needs.

Getting a self employed mortgage doesn’t have to be complicated. With the right advice and preparation, self-employed borrowers can find a good self employed mortgage option that suits their needs. So don’t be afraid to take the plunge and look for self employed mortgages today!

CAN SELF-EMPLOYED PERSONS GET A MORTGAGE?

Yes, self-employed individuals can get a mortgage. Generally, self-employed borrowers will need to provide additional documentation and may be subject to different lender requirements than those who are traditionally employed. However, self-employed applicants can qualify for mortgages with most lenders if they have adequate income and credit history.

WHAT DOCUMENTS DO SELF EMPLOYED MORTGAGORS NEED FOR A MORTGAGE?

Self-employed borrowers may need to provide additional documentation such as business tax returns, self-employment income verification, and bank statements. It’s important that self-employed applicants contact their lender ahead of time to determine which documents they will need to provide to be approved for a self-employed mortgage.

HOW IS SELF-EMPLOYED INCOME CALCULATED FOR MORTGAGE UK?

In the UK self-employed income is usually calculated using a self-certification mortgage. This type of mortgage requires self-employed applicants to self-certify their income by providing evidence of past earnings, and ongoing proof that they can meet the obligations of their mortgage payment. Lenders will also consider other financial information such as credit history and assets when determining self-employed income.

HOW MANY YEARS SELF-EMPLOYED FOR MORTGAGE?

Most self-employed applicants will need to provide self-employed income verification for the last two to three years. However, this can vary from lender to lender and self-employed applicants should always contact their lender prior to applying for a self employed mortgage in order to find out what documentation is required.

WILL A SELF-EMPLOYED GRANT AFFECT THE MORTGAGE APPLICATION?

Any self-employed grants that self-employed applicants receive can affect their mortgage application. Generally, self-employed grants are part of the applicant’s income and lenders may take this into consideration when determining the applicant’s eligibility for a mortgage. It is important for self-employed applicants to inform their lender of any self-employed grants they receive to ensure their mortgage application is processed accurately. Most lenders will deduct any grants from the net profit figure since this isn’t really generated income.

HOW MANY MONTHS BANK STATEMENTS FOR A MORTGAGE WHEN YOU’RE SELF-EMPLOYED?

Most self-employed applicants will need to provide bank statements for the last two to three months. However, self-employed applicants should always contact their lender prior to applying for a mortgage to find out what documentation is required.

 It is called a "second charge mortgage" because it is a separate loan that is secured against your property, in addition to your primary mortgage which is the first charge on the property. Learn about the advantages of a second-charge mortgage with this guide. 

If you’re a homeowner with a mortgage, you may wonder what a second charge mortgage is. Essentially, it’s a loan secured against your property, like your first mortgage. However, there are some key differences that you should be aware of before taking out a second charge mortgage. In this guide, we’ll explore everything you need to know about second-charge mortgages so that you can make an informed decision about whether one is right for you.

A second charge mortgage is a loan that is secured against your property. It doesn’t replace your existing mortgage but sits alongside it as an additional debt. This means that you’ll need to make two separate payments each month – one for your first mortgage and one for the second charge on your mortgage.

Second-charge mortgages are an increasingly popular choice for homeowners looking to take out an additional loan. These mortgages, also known as secured loans, are an added line of credit secured against your property. Second-charge mortgages come with their own criteria, such as loan-to-value (LTV) ratios and repayment plans that depend on the products offered by lenders.

Having a second charge mortgage alongside your primary mortgage may be beneficial if you’re looking for extra capital but need to increase the amount already secured on your home. On the other hand, if you know what you’re taking on and can comfortably make payments on both loans over time, this type of financial product could offer an option worth considering.

The following are some examples of how our clients have used second charge loans:

This client had some credit problems after taking out his first mortgage. He wishes to raise money against the equity in his property, but re-mortgaging means he would pay more interest on a new loan. our team helped him with a second charge loan. This meant he could borrow more but keep the competitive rate on his existing mortgage.

This client had a first mortgage on a fixed rate with a high early repayment charge. He wanted to borrow more money, but the first charge lender did not offer further advances.  However, we managed to help him obtain a second-charge mortgage. It was cheaper than the alternative of a re-mortgage and facing early repayment charges.

This client wanted to purchase an investment property and needed additional funds for the deposit and renovation work. we helped the client raise a second charge bridging loan against their residential property. The loan was repaid when the renovations were finished, and the investment property was re-mortgaged using the new increased value.

There are a variety of benefits to taking out a second-charge mortgage.

• Keeping your first charge untouched allows you to keep your current rate and saves on paying early repayment charges.
• Longer-term period than a personal loan
• Second-charge mortgages are also helpful for short-term money saving.
• It can offer more flexible repayment terms than re-mortgaging and can often be used for short-term financing due to unforeseen circumstances.
• Relatively quick turnaround times and cost-effective terms – borrowers can tackle necessary projects while preserving their existing mortgage structure.

Second-charge mortgages offer many potential benefits and should be considered alongside other options by any homeowner looking for extra funding options.

Qualifying for a second charge mortgage involves meeting several criteria. To begin with, applicants must be over 18 and be the registered owner of the property that is being used as security. Furthermore, applicants must have sufficient income to make both mortgage payments.

It’s worth remembering that adverse credit records could affect the borrower’s ability to obtain a second-charge mortgage.

It is also essential to demonstrate a good payment history on the existing first charge mortgage and not have any bankruptcy orders against them. Finally, loan-to-value (LTV) requirements must be met before being granted a second-charge mortgage loan; this involves specifying the amount they would like to borrow as a percentage of the property’s value. Upon completing these criteria, mortgage lenders are more likely to comply with an applicant’s request and approve a second-charge mortgage loan.

Note: Although borrowing additional money by taking out a second charge mortgage can help individuals achieve their goals, it can also make it harder for them to repay their mortgage if an emergency arises, so it is essential for individuals to carefully consider all pros and cons before applying for such loans.

Borrowers should consider taking out income protection and critical illness cover if they are off work due to an accident or long-term illness. Ultimately, understanding how to qualify for a second-charge mortgage is essential in helping applicants decide whether this type of loan option suits them.

Taking out a second-charge mortgage holds various advantages for borrowers, including access to flexible repayment options, competitive rates of interest, and potentially lower fees than other loans. Understanding how the second charge mortgage process works is critical to finding the right solution for your needs. Before applying for a second charge mortgage, you must identify a lender who meets your criteria by researching their credentials and any conditions they may have regarding loan terms and eligibility.

Once you have chosen a second charge lender, they will assess your situation and determine whether you are eligible. After providing evidence of your income, assets, and credit history, the lender will guide estimated payments and different repayment options before issuing your second charge mortgage agreement. From that point forward, you must maintain regular payments until you’ve fully repaid your second-charge mortgage loan. This straightforward process should ensure that your second charge needs are met most efficiently.

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. 

Second-charge loans are typically repaid on a capital repayment basis; however, interest-only options may be available. If chosen, the rates tend to be higher, and fewer options are available. In addition, broker and lender fees are required – lender fees can either be paid upfront or added to the loan, so no upfront payment is necessary.

Valuation fees can also apply if the chosen product doesn’t offer a free valuation.
Rates will vary depending on the lender. Second-charge mortgages can cost more than standard mortgages since they present a higher risk to lenders – if any shortfall occurs due to difficulties keeping up with the mortgage payments, the first-charge mortgage lender will be paid first, then the second-charge lender.

The amount of money you can borrow on a second-charge mortgage will depend on several factors; these include the value of your property, the amount of equity you have in your home, and your creditworthiness. The lender will also consider other factors, such as income, employment status, and any existing debt.

The second charge mortgage loan-to-value could be anywhere from 60% – 95% – it depends on the lender and your circumstances. Assessing a second charge mortgage loan-to-value relies on a range of factors, e.g., whether the property is a residential home, a buy-to-let property, a house of multiple occupancies, or a commercial building.

If you decide to move home while your second charge mortgage is still in force, transferring the loan to your new property may be possible.

However, this depends on various factors, such as the type of loan and its status, the amount of equity you have built up in the old property, and whether or not you can satisfy the requirements of a new lender.

You should consult with a mortgage advisor or solicitor about transferring your second-charge loan before making any decisions or future commitments. Alternatively, you can pay off the loan in advance and apply for new financing when you move home.

There are a multitude of lenders in the UK offering second charge mortgages, each with its own set of requirements and rates. Shopping around for the right deal is essential to find one that meets your needs and budget.

At Kay Global Financial Services we have access to a wide range of UK lenders, allowing us to provide you with the ideal second charge mortgages in terms of interest rate and loan duration.

Get in touch with us today to find out more about second charge mortgages and how we could help you.

Although second-charge mortgages are a viable option, other options may better suit your needs. These could include:

Typically more expensive than second charge mortgages, but may allow smaller sums to be borrowed over shorter periods.

Credit cards can cover short-term costs but have higher interest rates and may require larger down payments.

Equity release enables you to access the equity in your home without needing to sell it or move out.

Unsecured loans may be more expensive than second-charge mortgages, but no collateral is required.

Savings and investments can provide interest-earning income over long periods.

Government schemes may be available for specific circumstances, such as help with home improvements.

It is essential to consider all the potential options before deciding and speak to a mortgage and financial advisor if you have any questions or need further advice. Kay Global Financial Services can help.

When looking for second-charge mortgage advice, it’s essential to consider multiple factors. A second charge mortgage lends money for different home and property-related purposes, such as home improvements or second properties, so deciding whether this is the right approach for you can be complex. When considering second-charge mortgage advice:

• It may also be helpful to investigate what other options are available as well.
• It could be more appropriate – and cost-effective – to secure a personal loan instead of taking on a second mortgage.
• Before going ahead with any second-charge mortgage, borrowers should take the time to understand the risks associated with second-charge mortgages and ensure that they have a realistic repayment plan.
• It may also be helpful to seek independent financial advice from an expert who can provide complete details about the implications of taking out a second-charge loan.
• Understanding all the pros and cons can help you decide whether a second-charge mortgage is the most appropriate approach for your needs.
• Ultimately, a clear understanding of the second charge mortgage process and associated costs is paramount.

HOW DOES IT DIFFER FROM A FIRST CHARGE MORTGAGE?

They differ from first-charge mortgages as they don’t secure against the full value of your property; rather they only secure a portion of it and come after primary mortgage holders in terms of priority. They typically have higher interest rates and fees than first-charge mortgages and are only available to those who own their property.

HOW TO PUT A SECOND CHARGE ON PROPERTY?

To put a second charge on your property, you need to take out a second charge mortgage. This is a loan secured against the value of your property, but with a higher interest rate than primary mortgages and it typically comes after primary mortgage holders in terms of priority.

HOW DO SECOND CHARGE MORTGAGES WORK?

Second charge mortgages work in the same way as other types of loans but are secured against the value of your property. They may be used for a variety of purposes such as home improvements, consolidating debts, or taking that much-needed holiday. The limit of what you can borrow may vary depending on your circumstances and requirements, so it’s important to shop around for the right deal that meets your needs and budget.

CAN A MORTGAGE COMPANY REFUSE A SECOND CHARGE?

Yes, a mortgage company can refuse to offer a second charge. This could be for a variety of reasons, such as if you don’t meet the required criteria or have sufficient income to cover repayments. It is important to shop around and compare different lenders to find one that meets your requirements and budget. Alternatively, getting independent financial advice can help you find the most suitable lender. It may also be helpful to investigate what other options are available as well.

CAN I GET A SECOND CHARGE MORTGAGE?

Yes, you can get a second charge mortgage if you own your property and have the necessary income to cover monthly repayments. It is important to understand all the risks associated with taking out this type of loan, such as higher interest rates and fees than primary mortgages, to make an informed decision about whether it is the right approach for you.

ARE SECOND CHARGE MORTGAGES REGULATED?

Yes, second charge mortgages are regulated by the Financial Conduct Authority (FCA). This means that lenders must adhere to certain regulations and ensure that borrowers have adequate protection when taking out a loan. It is important to take the time to understand the risks associated and make sure that they have a realistic repayment plan in place. They are no different from a first-charge mortgage except they rank second on the title deed of the property.

WHAT IS THE DOWNSIDE TO A SECOND MORTGAGE?

The downside to a second mortgage is that it typically comes with higher interest rates and fees than primary mortgages and may also be more difficult to obtain. Additionally, if you fail to make regular repayments, your property could be at risk of being repossessed.

DO YOU NEED A SOLICITOR FOR A SECOND CHARGE MORTGAGE?

No, a solicitor is not always necessary for a second charge mortgage. However, it is recommended that you seek independent legal advice before taking out a loan of this kind. This will ensure that your interests are protected and ensure that the terms of the agreement are clear.

 Are you an expat looking to buy or remortgage a property in the UK?
Our comprehensive guide on expat mortgages UK is here to answer all your questions. If you need additional assistance, don’t hesitate to contact us - we are always ready and willing to help.

An expat mortgage is a loan specifically tailored to the needs of British Expatriates (expats), enabling them to purchase or remortgage a property in the UK. With an increasing number of Brits leaving the country for work, retirement and lifestyle reasons, this type of finance has become increasingly popular over recent years.

At  Kay Global Financial Services, we have specialist advisors who can provide a wide range of international finance options for expats and foreign nationals looking to buy in the UK either as an expat buy-to-let or an expat residential borrower.

We can also assist UK nationals purchasing property overseas in places such as Spain or France. Our experienced team of experts has established relationships with many expat and foreign national mortgage providers, helping you to secure finances when needed.

An expat mortgage is a specialised type designed for individuals living abroad. It enables expatriates to purchase property in their home country without needing to return to it in person. The loan amount and interest rate will vary depending on the lender chosen.

An expat mortgage can allow expatriates to purchase their own home or an investment property, even when they live in a different country. The process of applying for an expat mortgage is often more complex than for a regular mortgage. It may require additional documentation, such as proof of employment, tax returns and other financial statements.

An expat mortgage is ideal for those purchasing properties, as it offers exceptionally low rates not accessible in their host nation. This can benefit those looking to invest in their home country’s property market or those who may need more funds to purchase a property outright.

Overall, an expat mortgage is an excellent way for expatriates to purchase property in their home country while living abroad. The process can be more straightforward and more affordable with the right expat mortgage lender.

Expat mortgages are available to UK citizens who live or work abroad, regardless of their current location.

To qualify for an expat mortgage, you will be living outside of the UK and may or may not plan to return to the UK at some point.

Other qualification for an expat mortgage depends on several factors, including your income, credit score and the type of property you plan to purchase. Typically, lenders require applicants to have a steady income stream, such as from employment or investments. In addition, you will need to provide proof of residence in the country you occupy.

In most cases, lenders will also require that you have a good credit record to qualify for an expat mortgage. 

Foreign National mortgages are available for non-UK citizens who wish to purchase a UK property as an investment or to live in.

There are a number of UK mortgage lenders who can consider foreign national mortgages. For applicants who wish to live in the property in the UK, lenders will normally expect that they have already lived in the UK for some time, or have received permanent rights to reside.

For foreign national applicants who do not reside in the UK and wish to buy a UK property to let it out, there are specialist lenders who can consider this, but with a slightly larger deposit than a typical buy-to-let.

The costs associated with an expat mortgage can vary depending on the lender and the type of property you plan to purchase. Typically, several fees may apply such as arrangement fees, valuation fees and legal fees,

Sometimes, lenders may also require applicants to pay for an international credit report. You will require funds for a deposit, which will be a certain percentage of the purchase price of the property depending on the lender chosen. It is essential to research the costs involved with each lender before making any final decisions.

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. 

The amount borrowed with an expat mortgage depends on various factors, including the purchased property type and the borrower’s income.

Generally, most lenders offer between 70-80% of the property’s value in a loan. We recommend you contact a specialist mortgage adviser like us for more information.

This amount may vary from lender to lender, and other requirements, such as a higher income or credit status, may be needed for more significant loan amounts.

Expat mortgages are typically available for both residential and buy-to-let properties.

Depending on the lender, they may offer financing options for holiday homes or second residences.

It is vital to research the type of property you plan to purchase before looking into an expat mortgage to ensure that it meets the lender’s criteria.

2. Expat mortgages are generally buy-to-let mortgages while the applicant lives outside the UK, but can be switched to a residential mortgage if the borrower returns to the UK.

3. Expat mortgages are usually offered by UK lenders but may also be offered by some international banks.

1. Foreign National Mortgages are for non-UK citizens who with to buy a property in the UK

2. The mortgage can be on a buy-to-let basis for non-residents looking to invest, or on a residential basis for those already residing in the UK. 

3. UK lenders and some international lenders will consider these mortgages, but a larger deposit or higher interest rate may apply, particularly for foreign national buy-to-let.

You can take several steps to ensure that you get the best deal on an expat mortgage.

1. Research different lenders:

Searching for a suitable lender is essential for finding a competitive rate, as some mortgage lenders offer better terms than others. A mortgage adviser specialising in Expat mortgages can help you find the most cost-effective option.

2. Secure sufficient funds:

Most lenders require a minimum down payment called a deposit before approving a loan, so having access to enough cash upfront will maximise your chances of being approved for the required borrowing level. Keep aside some funds also for the mortgage costs.

3. Understand the tax implications:

If you are investing in the UK, speak with a specialist UK tax adviser to make sure you are aware of and make provision for the tax costs

By following these steps, borrowers can ensure they get the best possible deal on their expat mortgage. 

Expat buy-to-let mortgages are specialised loans designed UK nationals who wish to purchase a rental property in their home country.

Most of the criteria that a lender would apply for to a standard buy-to-let, will apply to an expat buy-to-let. The lenders however may have some variances, such as requiring a larger deposit or charging a slightly higher interest rate. 

Kay Global Financial Services specialises in providing tailored solutions to individuals seeking expatriate mortgages. We understand that no two situations are the same, so our experienced team of professionals will take the time to get to know you and your specific circumstances before finding a solution that best fits your requirements.

At kay Global Financial Services, we have access to a wide range of products from lenders in the UK, Europe and offshore, allowing us to offer competitive rates on all expatriate and foreign national mortgages. 

Whether you are looking to purchase, refinance or remortgage a property, Kay Global Financial Services is here to help. We are committed to providing excellent customer service and strive to ensure our customers’ needs remain at the forefront of everything we do. With our extensive knowledge and experience in the international mortgage industry, we can provide impartial advice and help guide you through every step of the process.

• Expats who live in a wide range of countries, including Australia, India, Kenya, Nigeria and Singapore.
• Expats that have just left the UK or have lived abroad for many years.
• First-time buyers or first-time landlords
• Self-employed Expats
• Expats up to the age of 80.
• Expats looking to purchase new build properties; Student lets, HMOs and Ex-local Authority properties.

An expat mortgage can be an excellent way for expatriates to purchase property in their home country while living abroad. With the right lender, getting a competitive rate and securing the financing you need to invest without having to return home is possible. However, it is essential to research all the costs associated with an expat mortgage before applying.

CAN I GET A UK MORTGAGE AS AN EXPAT?

Yes, expats can get a UK mortgage, provided they meet the lender’s criteria for residency and income. It is important to compare lenders before applying to ensure you get the best deal available.

CAN AN AMERICAN GET A UK MORTGAGE?

Yes, an American can get a UK mortgage. However, the process may involve additional requirements and considerations due to the foreign national status of the applicant. Therefore, contacting a qualified lender or mortgage advisor is best for further information on eligibility and procedures.

WHAT IS THE MINIMUM CREDIT STATUS REQUIRED FOR AN EXPAT MORTGAGE IN THE UK?

The minimum credit status required for an expat mortgage in the UK will vary depending on the lender. Generally, however, lenders need a good to excellent credit score to qualify for a mortgage. A specialist Kay Global Financial Services expat mortgage adviser can help you to check if you meet the lenders’ requirements in this area.

ARE THERE ANY RESTRICTIONS ON THE TYPE OF PROPERTY THAT CAN BE PURCHASED WITH AN EXPAT MORTGAGE?

Generally, lenders will only lend on properties that fit their standard criteria. For example, some lenders may have a maximum property value of £500,000, but some will be much higher. Some lenders may also refuse to lend on certain types of property, such as new-builds or ex-local authority homes. Check with your expat mortgage adviser/ to determine if there are any specific restrictions on the property types you are considering.