Are expat mortgages harder to come by?

If you are an expat based overseas and are seeking a mortgage, it has proved more difficult to obtain a mortgage. New rules were introduced in 2014 and this made things trickier for potential borrowers whose income and expenditure had to be evidenced after this time.

Following European rules introduced in 2016, individuals that are paid in a foreign currency now come under closer scrutiny during the mortgage application process. In addition, lenders operating within this sector need to conduct enhanced due diligence on each application which, in turn, means more detailed administration. This has caused some lenders to withdraw from expat lending as a direct result of the European rules.

Expat mortgage application process

It can help to find a trusted mortgage broker who can guide you through the process and match you with the best lender.
Andrew Hipshon from Hoxton Capital comments: “Due to the increased risk to the lender there is usually a premium on expat mortgages, so don’t expect to get the headline mortgage rates on comparison sites. It is wise to obtain an agreement in principle first so you understand what you can afford to borrow before you start looking at property”

Other key tips are to provide as much accurate information as possible and keep in mind what you are trying to achieve with your available budget.

Be aware of currency fluctuations

Alongside the mortgage application, it’s worth bearing in mind that currency fluctuations can impact any currency payment you need to make. If you will be needing to send money overseas for deposit payments or property purchases then ensure that you plan in advance.

With the right planning and expert help, you can ensure your move is enjoyable and costs are kept down. If you are moving to Australia, New Zealand or anywhere else in the world, find out how FairFX’s International Transfers service can help you.

Moving abroad can be a stressful and costly experience but with the right planning and expert help you can ensure your move is enjoyable and costs are kept down. Find out how FairFX’s International Transfers service can help you.

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John Kinghorn

John Kinghorn

John is VP of Affiliates & Partnerships at FairFX. He has a passion for travelling, sport and keeping fit.

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