Expatriate Mortgage Disadvantages

Expatriate

Expatriate mortgages are specialist mortgages available for UK citizens who are living and working abroad. If you own a UK property and are working abroad you can apply for a residential mortgage, even if this property is to be let for a few years until you return.

Mortgage Disadvantages

Get a Free Quote Disadvantages of Expatriate Mortgages
The Expatriate mortgage will always have a financial weighting to account for the increased risk of the loan. Lenders see UK citizens living or working abroad as a higher risk group no matter how stable and solvent they are personally and the Expatriate mortgage will reflect that in its rates and obligations. A person who is subject to foreign law and conditions will not have the same risk profile as a person residing and working in the UK.

More Expensive
Because Expatriates have to source their mortgage through specialist lenders means that there is much less choice available and that means competition on rates is not as keen as in other mortgage sectors. So, in short, an Expatriate mortgage is likely to be relatively expensive when compared to the standard high street mortgages on offer.
If some rates do appear to be low there may be hefty arrangement fees to compensate.
There may be other restrictions tied to the Expatriate mortgage that will become apparent when the mortgage is detailed. At least one of the borrowers will be required to have a current legitimate UK passport and other constraints will be dependent on the particular lender.

Minimum Flexibility
Finding a suitable Expatriate mortgage may not be easy and that is why the use of an experienced mortgage broker is advisable in this area.
Once an Expatriate mortgage is found it may not offer much flexibility in terms of early redemption or change of lender and is likely to carry financial penalties in those areas. Again the relative lack of choice makes it harder for the borrower to avoid these features by shopping around but a broker should be able to advise on the relative pit-falls and benefits of the various offers.

On balance there are several disadvantages to the Expatriate mortgage as mentioned above but for the UK citizen who lives abroad by comparing everything that the market has to offer and then taking informed advice it will enable them to obtain a mortgage that isnít otherwise available to them.

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