Expat Lenders Keep Expat Mortgage Deal Flowing During COVID-19

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Expat Lenders Keep Expat Mortgage Deal Flowing During COVID-19

Just one month after the UK government effectively put large parts of the UK property market into a form of hibernation, evidence is emerging that many specialist UK expat mortgage lenders are finding ingenious ways of keeping expat house purchases moving and delivering completions.

Written for Expat Network by Guy Stephenson of Offshoreonline

With much of the country in lockdown, viewings and valuations of properties have inevitably become problematic. But for some buyers, deals are proceeding through to completion.

“We have seen banks react in one of two ways, both reasonable in the circumstances,” said Guy Stephenson, a director of expat mortgage brokers Offshoreonline.org. “Some lenders are moving to a simple desktop valuation model and importantly not charging the customer a valuation fee either. Typically, this is in cases where the lending represents less than 65% of the property value. Other lenders have used a list of specific kinds of property they will allow to move forward, without a physical visit to value.”

With the issue of a valuation solved, many deals can proceed to completion, especially remortgage and non-complex purchases. Complex cases which might cover factors such as short leases are not covered in the schemes.

Stephenson ends, “The smaller ,specialist UK building societies in particular have moved to an effective dispersed working model very quickly and as a result, we are seeing little, if any, delays to questions we have for underwriters. It is not quite business as usual, but it is certainly more than acceptable.”

Following the most recent UK Base Rate reduction, expat buy to let mortgage deals are now available from 2.49%.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.