Just because you are not living in the UK, doesn't mean that you are deprived of getting a mortgage from the banks or lenders in your homeland. There are currently many options available to UK Expats but you need to work with a qualified mortgage adviser who can provide some options and guide you through the process.
With that in mind, we wanted to briefly outline the UK Expat mortgage process along with some FAQs.
Do you need to travel back to the UK?
One of the most common questions every UK Expat has is whether they need to travel back to the United Kingdom to submit a mortgage application or not. The answer is resolute - no. You can submit every necessary document for the mortgage application via their secure email system or a courier.
What are the mandatory requirements to get started?
The list of mandatory documents will include a copy of your passport, three to six months’ payslips and three to six months bank statements. Nowadays, most lenders also insist on a permit of residence, P60, or a letter from your employer that confirms your contract details and your remuneration package.
How long is the mortgage application process?
After you submit the mortgage application, the process usually takes anywhere between four and six weeks. The lender uses the period to verify your employment status, source of funds for deposit, identification, etc. At the same time, the lender will conduct a property valuation for their purposes.
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The mortgage offer
Once the evaluation process is over, the lender will send a mortgage offer. That’s under the assumption that the lender green lights your application. Your mortgage offer or document will feature the exact amount your lender is ready to approve, the type of mortgage, the mortgage rate, along with other details. Much of that will be based on your financial background and the market value of the property.
What is the typical time limit of a mortgage offer?
The mortgage will also come with a time limit attached to it and along with other terms and conditions. The terms and conditions are pretty much standard and non-negotiable. However, there is a certain flexibility with the time limit of the mortgage offer. Very often, lenders are open to extending the period during which their offer is viable. On average, mortgage offers come with a two to three months’ time limit. But as mentioned, more than often, that period can be extended.
Is a solicitor involved in the process?
Again, let's assume that you find their financial offer acceptable, along with all the other terms and conditions. Your next step should be contacting a solicitor. The solicitor is essential when making your deposit. When exchanging the contracts, the deposit must be with the solicitor. Know that you can add lender arrangement fees to your mortgage, but not any associated fees like the valuation fee. A life cover is one of those things that is not mandatory, but more than often, it is recommended to have one.
This sumps up the process for obtaining a mortgage offer and what the average UK expat should experience when trying to get a mortgage. Some banks or financial institutions might require additional documents, but it’s nothing significant that slows down the process.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
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