Expat remortgages

An expat remortgage is a new mortgage on a UK property that replaces an existing one while the borrower lives abroad. It can secure a new rate when a deal ends, release equity, move from a residential to a buy-to-let mortgage, or add or remove a borrower. Lenders assess it on overseas income, the property and how it is used.

Many expats first meet this when a fixed rate ends after a move overseas and the existing lender's standard variable rate applies. Others want to release money for a purchase abroad or to fund work on the UK property.

A product transfer is a new deal with the existing lender, usually with few checks if the loan amount and the borrowers stay the same. Many lenders allow product transfers for customers who have moved abroad, even if they would not lend to an expat from scratch, which can make this the simplest route when a deal ends.

Some lenders restrict transfers once a borrower is overseas, or offer only part of their range. Checking the existing lender's position early, before a deal ends, leaves time to compare it with moving to a new lender.

Moving a mortgage to a new lender while living abroad means a full application, with checks on overseas income, the country of residence, the currency of income, UK credit history and the property. The group of lenders is smaller than for UK residents, and criteria vary on countries, currencies and minimum income.

Rates on expat mortgages can differ from rates for UK residents. The expat mortgage rates page explains what moves expat pricing and how to compare offers on total cost. Fees for valuation and legal work apply in the usual way, and some lenders offer free legal work on remortgages.

Documents usually include payslips, an employment contract, bank statements, proof of address abroad and identity documents. Some lenders accept documents certified overseas, and others ask for originals.

Expats who move abroad often let their former UK home. Letting a property on a residential mortgage needs the lender's consent, which may come with a higher rate or a time limit. Remortgaging to an expat buy-to-let mortgage is the longer-term option, assessed on the expected rent against the interest, rather than on personal income alone.

Letting also brings duties as a landlord, such as safety checks, deposit protection and tax on rental income under the Non-Resident Landlord Scheme. A UK letting agent can manage these while the owner is overseas. How expat lending on rental property works is covered in the expat buy-to-let mortgages page.

Releasing equity through a remortgage can fund a property abroad, home improvements or other plans. Lenders ask what the money is for, and some limit how much can be released or exclude certain uses, such as buying property overseas. The amount depends on the property's value, the existing loan and the borrower's income or rent.

Raising money increases the loan and the monthly cost, so testing the new payment against income in the foreign currency, allowing for exchange rate changes, gives a fuller picture.