Helping UK nationals looking to return to the UK

Expat lending can become unexpectedly complex, even for UK nationals who have built substantial careers overseas. In this case, our clients had spent almost a decade in Qatar and needed a carefully structured expat lending solution to support both their existing investment property and the purchase of a new family home in the UK.

During their time abroad they retained their UK property as a buy-to-let investment. The property, now worth £450,000 with an outstanding mortgage of £252,000, had reliable tenants in place and continued to generate steady income. As the fixed rate was approaching its end, they wanted to release equity to help fund a new family home in the UK.

The complication was that the main applicant would continue working oversea’s, while the rest of the family planned to move back immediately so their son could start school in September. Many mainstream lenders struggle with this type of structure under expat lending rules, particularly where income is earned overseas and one property remains as an investment.

How We Structured the Expat Lending Solution in Two Parts

Buying a home in the UK while living abroad often requires a two-part structure, particularly where equity release is involved.

First, we arranged a Buy-to-Let remortgage with Market Harborough Building Society under their Expat Tier 2 product. Remortgaging UK property while abroad requires careful lender selection, particularly where income is earned outside the UK. By refinancing and raising an additional £80,000, the total loan increased to £332,000 on an interest-only basis over 25 years at 6.03%. The monthly payment was £1,668. This released the deposit required while allowing the existing tenants to remain in place and the property continue generating profit.

Second, we arranged the residential purchase at £460,000. Using the £80,000 raised from the BTL, £30,000 in savings and a £40,000 family contribution, the required mortgage was £310,000. Again, under the lender’s Expat Tier 2 criteria, we secured a 5-year fixed rate at 5.48% over a 15-year repayment term, with monthly payments of £2529.

By carefully aligning both applications, the family achieved their goals without disrupting their investment strategy. The main applicant’s salary was fully assessed under specialist overseas income mortgage UK criteria, the buy-to-let remained profitable, and the family secured their new home in time for the school year.

Expat lending often requires a more tailored approach than standard residential cases. Overseas income, currency considerations and future relocation plans must all be assessed correctly from the outset.

Every case is different, and criteria can vary significantly between lenders. If you are a UK national living abroad and considering a return home, seeking advice early can help you structure your borrowing effectively and avoid unnecessary delays.