When should you consider an offshore mortgage?

If you’re living overseas and are looking to buy or remortgage a UK property, you need to secure an offshore mortgage. Here, we’ll explain what that is, the types of offshore mortgages available and the eligibility criteria.

What is an offshore mortgage?

Offshore mortgages enable those who aren’t resident in the UK for tax purposes or those whose income is predominantly earned outside the UK to buy or remortgage a UK property. You can apply for one if you’re a UK expat, a foreign national or have an income that’s earned overseas. As a niche product, offshore mortgages are provided by specialist lenders and private banks.

Offshore residential mortgage

Offshore mortgages are typically used to buy residential UK properties. You may wish to buy a home in Pimlico, London, for you or your family to use each time you go to the UK, for example. This saves you from having to find short-term rental accommodation or paying expensive hotel costs.

Offshore buy-to-let mortgage

You can also take advantage of an offshore buy-to-let mortgage to purchase an investment property. When you’re domiciled abroad, having a property that you can rent out in the UK makes financial sense.

Your eligibility for an offshore mortgage

Private banks and specialist lenders dealing with offshore mortgages take a more personal approach when it comes to their lending criteria. They understand that you may have a complex income stream and, as well as your earnings, they take your assets into account. You may have a lack of credit history in the UK. Offshore mortgage lenders allow for this in their underwriting processes.

Each application is dealt with on a case-by-case basis and you will benefit from a mortgage that’s tailored specifically to meet your needs. Your age, occupation and circumstances are also taken into account as well as your purpose for buying the property. You can apply for an offshore mortgage as an individual or via a limited company or an offshore trust. You can also choose whether to have your offshore mortgage in sterling or a foreign currency.

Most lenders agree to offshore residential mortgages up to a 75% loan-to-value (LTV) ratio. Others may agree to a higher LTV depending on your circumstances and country of residence. You may be able to secure a 100% LTV with back-to-back loans via some private banks and lenders.

The benefits of having an offshore mortgage

An offshore mortgage allows you to buy or remortgage a property in the UK if you’re domiciled abroad, your income is largely comprised of different currencies or you’re a foreign national. As mentioned above, you can secure an offshore mortgage even with a lack of credit history in the UK. This is likely if you’ve lived overseas for more than 3 years.

With an offshore residential mortgage, you can buy a home in Pimlico, London, for example. This is ideal for you or your family to stay in if you travel to and from the UK frequently. Or you may prefer to buy an investment property in the UK using an offshore buy-to-let mortgage, providing you with an income. Other benefits of having an offshore mortgage include:

• Your worldwide assets are taken into account as well as your earnings.
• You can apply for an offshore mortgage as an individual or via a limited company or an offshore trust.
• You can decide which currency you’d like your offshore mortgage to be in.
• It may be possible to acquire a 100% offshore mortgage using back-to-back loans.
• An offshore mortgage can be tax-effective in some circumstances. Be sure to speak with a tax expert before proceeding with this type of mortgage.

Proceed with your UK property transaction using an offshore mortgage

Our offshore mortgage brokers have formed good relationships with specialist lenders and private banks offering this niche product. When you’re ready to buy or remortgage a UK property, just give us a call on 01322 907 000. We’ll find the specialist lender most suited to handling your mortgage application. This will provide you with a bespoke lending solution for your needs and circumstances. We’ll also negotiate for the best terms and most competitive offshore mortgage rates on your behalf.