If you're a British expat residing in the United States, the prospect of securing a mortgage for a property back in the UK might seem like a daunting task. 

However, with the right guidance and expertise, it's entirely achievable - especially with the help of a mortgage broker that specialises in arranging UK mortgages for expats. 

In this article, we'll explore the intricacies of obtaining a UK expat mortgage while living in the US. We'll delve into the eligibility criteria, application process, and key factors that lenders consider. Whether you're a first-time buyer or an experienced investor, you'll gain a comprehensive understanding of how to make your UK property dreams a reality.

Eligibility Criteria for US Expats

Before diving into the application process, let's take a look at the eligibility criteria that lenders typically require for expats in the United States.

Nationality and Residency Status

Most UK lenders will require you to be a British citizen or hold a valid UK residency permit. This is because they want to ensure that you have the legal right to live and work in the UK, which can impact your ability to repay the mortgage.

However, there are lenders that can work with US citizens and residents - you just need to apply to the right ones.

Employment and Income

Lenders will scrutinise your employment status and income to determine your affordability. If you're employed, you'll need to provide proof of employment, such as a contract or payslips. If you're self-employed, you'll need to furnish tax returns and financial statements that demonstrate a stable income.

It's generally more difficult as a self employed expat - but not necessarily impossible. Speaking to a mortgage broker is wise, as they can help package your application in the right way and liaise with the lender and underwriters on your behalf.

Deposit and Credit History

Like any mortgage, you'll need to have a substantial deposit – usually at least 25% of the property's value, but you may be able to get away with a 20% deposit for residential properties. Lenders will also review your credit history to assess your financial responsibility and ensure that you're a low-risk borrower.

The Application Process

Now that you understand the eligibility criteria let's walk through the application process for a UK mortgage as an expat in the United States.

Finding the Right Lender

Not all lenders offer mortgages to expats, and those that do may have varying requirements and terms. Using an expat mortgage broker is typically the best way to ensure you're applying to the right lenders.

Gathering Documentation

Once you've identified a suitable lender, you'll need to provide a range of documentation to support your application. This typically includes proof of identity, proof of income, bank statements, and details about the property you're interested in purchasing.

The Underwriting Process

After submitting your application, the lender will conduct an underwriting process. This involves assessing your financial situation, employment history, and credit score to determine your risk level and the appropriate mortgage terms.

Key Considerations for US Expats

While the application process is similar to a standard mortgage, there are a few key considerations that are unique to expats in the United States.

Currency Fluctuations

As an expat earning income in US dollars, fluctuations in exchange rates can impact your ability to make mortgage payments in pounds sterling. However, as the US dollar is a strong and stable currency, your application will still be competitive. You may face a 15-20% currency trim when calculating how much you can borrow compared to Sterling earnings.

Tax Implications

Depending on your residency status and the tax laws in the United States, there may be tax implications associated with owning property in the UK. It's crucial to seek advice from a qualified tax professional to ensure you're fully compliant.

Property Management

If you're purchasing a rental property in the UK, you'll need to consider how you'll manage it from the United States. Many expats choose to hire a property management company to handle day-to-day tasks like tenant screening, maintenance, and rent collection.

Frequently Asked Questions

Can I get a UK mortgage if I live in the USA?

Yes, it is possible to obtain a UK mortgage while living in the United States. However, you may need to work with a specialist mortgage broker who understands the application process and the specific marketplace for US residents.

Can I keep my UK mortgage if I move to the USA?

If you already have a UK mortgage and plan to move to the United States, you may be able to keep your existing mortgage. However, you'll need to inform your lender of your change in circumstances, and they may have specific requirements or conditions.

Can I get a UK mortgage with a US salary?

It is possible to obtain a UK mortgage using your US salary as your income source. However, lenders may apply a slight reduction to your income when converting it from US dollars to pounds sterling for the purpose of calculating your borrowing potential.

Which UK banks offer mortgages for overseas properties?

While many high street banks in the UK may not offer mortgages for overseas properties, there are several lenders that specialise in this area. These include international building societies, specialist expat lenders, and private banks. Working with an expat mortgage broker like UK Expat Mortgage can help you find the right lender for your needs.