The good news is yes! The not so good news is that it can be a more complicated process. That said, the benefits of retaining property in the UK whilst working abroad can be significant. Especially if you expect to return at some time in the future.

The first thing to consider is your tax status. If you live abroad for six months or more per year, and rent out a property, you'll likely be classed as a "non-resident landlord" by HMRC, even if you're a UK resident for tax purposes. And wherever your income is taxed, you'll be required to pay tax on the rent you receive.

The next thing is the type of mortgage you’ll need. Lenders may consider a standard domestic loan when you can illustrate that a close family member lives in the premises whilst you’re away, but most lenders will require you to take a ‘Expat Mortgage’ loan which is designed for non-resident borrowers who are letting out their home.

This type of mortgage usually has different criteria and the ‘rent cover’ will be an important factor. In other words, the amount of rent you receive will be very pertinent to the amount of money you can borrow.You are also likely to have to put down a larger deposit, perhaps 25% or more.

The European Mortgage Credit Directive, introduced in 2016, requires that individuals paid in a foreign currency come under closer scrutiny when their loan applications are assessed. The underwriting process needs to take account of possible exchange-rate fluctuations, as well as looking at a borrower's overall financial position. Furthermore, satisfying the various checks required by lenders can become a cumbersome process.

Getting a correctly certified passport can be difficult if the borrower lives in an area without access to international lawyers, accountants or diplomats. In many cases large employers are not set up for the additional needs of an Expat’s loan application and the self-employed will have a very difficult time of it unless they have verifiable income that can be evidenced by a major international accountancy firm.

It’s also worth noting that lenders active in the UK market will have a list of "restricted" countries where they won't lend. This might include countries subject to sanction or where corruption or weak regulatory practices exist. Many African nations and some in Eastern Europe meet this category.

We offer a tailored, personal service to clients living abroad and work hard to understand clients present and future needs. Being totally independent we can offer products from the UK and international mortgage markets.

For more information please contact us on 01628 507477 or click here to book a free phone or video appointment.

Recent posts

Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.

Data shows landlords could miss out on green mortgages due to expired energy performance certificates.

Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.

Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.

It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.

There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish. 

The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.

Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months. 

According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.