Guide to Essential Money Tools

Property Tools

Offshore mortgages

Offshoreonline.org explains why expats should consider the offshore mortgage market.

If you are thinking of moving abroad, or if you already have, it is a condition of your mortgage that you will need to tell your lender. That is the point at which you will realise why you need an offshore mortgage specialist – the
majority of UK mainland mortgage providers are just not geared up to serve the needs of the expatriate. Typically, lenders who do not offer mortgages for UK nationals moving abroad will simply reclassify your existing loan as a buy-to-let or commercial account. The interest rate on such products is usually between 1.5% and 2.5% higher than the identical product if you were still living in the house, even though it may technically still be your main residence.

The reason why the banks do this is simply that they view a let house as a more risky commercial proposition. Needless to say, that is almost always incorrect, particularly if you are earning a typical expatriate salary.

There is a simple way round this problem. By using a lender who is geared up to serve the expatriate market, you will have access to loan deals that are as good, and in some cases better, than onshore ones.

In fact, moving abroad should be the ideal catalyst for you to review the rate you are paying on your loan.