UK Property Mortgages Guide

UK Property Mortgages Guide

If you’re tempted by property for sale in the UK, find out our guide to UK property mortgages for expats and non-residents.

Before even beginning to look at properties for sale in UK, first check out our guide to UK property mortgages to make a calculation of how much you can realistically borrow from the bank and what property prices you can afford. There are no restrictions on foreigners applying for a UK mortgage, but UK mortgage conditions can change depending on whether you are a resident or non-resident in the UK.

Here are some things to keep in mind when it comes to getting a mortgage:

  • Expect the interest rate to be around 2-4%. This rate will vary case-by-case based on the lender criteria, your needs and circumstance.
  • The loan-to-value (LTV) ratio can vary between 65-75 %.
  • When it comes to the payment method you can choose between Interest Only or Interest and Capital. The term for an Interest Only mortgage is from 5 to 15 years the term for Interest and Capital is approximately 25 years. Both are dependent on the age of the borrower.
  • The interest rate can be booked for a fixed-term from 2 to 5 years, this will give a piece of mind that you don’t need to remortgage for 5 years and you will know how much you pay each month. The variable interest rate depends on the client and their needs is less than the fixed rate.
  • Lending age depends on the bank, with some who lend up to age 80.
  • A guarantor can be used to increase the borrowing, and to avoid hefty stamp duty.
  • Most of the lenders will look to the rental income for investment, if this is not enough, they will check the client’s income for top-slicing.
  • For a live-in property they will look to your income.

Our mortgage partners include:

Hayat Private Finance – UK Mortgage Lending

Visit their website www.hayatprivatefinance.co.uk for further information on the services they provide.