Below we provide Q&A on all frequently asked questions relating to a UK Home mortgage for non-UK resident.
Do I borrow in my country of residence or the UK?
Mortgages are arranged with UK-based lenders who support non-UK residents. Therefore, the interest, terms and conditions are in line with the UK market and regulations.
Which countries can you assist?
We assist clients from across the globe, however it is important to note each lender will have an approved country list. This factor will be key in determining your lender choice and terms.
Use our personal mortgage report calculator for country specific terms
How much can I borrow?
The amount you can borrow varies between lenders. Most adopt an overall affordability assessment, i.e. your global income less expenses and liabilities.
What is the maximum loan to value?
The maximum LTV varies between lenders up to 90% loan.
It is important to note the rate of interest changes at each 5% threshold, i.e., a 75% LTV mortgage will attract lower rates than an 80% LTV mortgage.
Is there a minimum or maximum amount?
Minimum – £25K
Maximum – No maximum
What is the maximum age and term?
Terms: 5–45 years
Maximum age varies: typically up to 75–80 years at end of term
What are the repayment types?
There are three options:
- A full interest only mortgage – this is where you are only paying interest and the mortgage will remain outstanding
- A full repayment mortgage – this is where your monthly payments consist of interest and capital repayments so at the end of the term the mortgage will be repaid in full
- A part interest only and part repayment mortgage
- Interest rate types?
There are two main options, which are a fixed or tracker/variable rate.
Fixed Rates – Your interest rate is locked in for a period of 2, 3, 5, 7, or 10 years. With a fixed rate, your monthly payments remain unchanged throughout the fixed term, providing stability and protection against potential rate increases.
Tracker Rates – In this scenario, the rate you are charged is a fixed margin above either the Bank of England base rate or the SONIA rate. Consequently, your rate may fluctuate, increasing or decreasing in accordance with movements in the base rate.
Is it better to fix or track?
A fixed rate will suit borrowers who prefer stability in the monthly payments and forecast interest rate to increase in the coming years.
Tracker rates are more suited to borrowers who require flexibility to make overpayments above 10% of the mortgage balance (see overpayments & early repayment charges) or forecast the base rate to reduce.
What happens when a fixed rate expires?
At the conclusion of the fixed rate period, the rate will revert to the lender’s standard variable rate (SVR). The SVR is typically more expensive, so your Springtide broker will reach out to you seven months prior to the expiration of your fixed rate to discuss new rates that your existing lender can offer or to explore remortgaging options with a more competitive lender.
We will then secure the new rate or offer, ensuring a seamless transition at the end of your current fixed term, thereby helping you avoid the higher costs associated with the SVR.
Can I make overpayments above the monthly payment?
Most lenders allow up to 10% annual overpayment without penalty. Some products allow full flexibility.
Can the property and mortgage be in different names?
Most lenders stipulate that the property and mortgage must be held in the same names. However, some lenders provide the option for an indirect mortgage, allowing the mortgage and property to be registered under different names. This flexibility can be advantageous in certain circumstances, enabling tailored solutions to meet your specific needs.
How many persons can be on the mortgage?
Up to four applicants.
How do you know if the price you agree with the seller is a correct price?
Once you have an agreed price, we will submit the mortgage application, and the bank will assess and approve it based on your agreed price. Subsequently, they will instruct an independent RICS chartered surveyor to conduct a valuation of the property.
If the valuer determines a lower value than your agreed price, you will be informed, and the bank will base their loan-to-value ratio on this figure. You will then have two options:
- Utilise the valuation report to renegotiate the purchase price.
- Proceed with the original agreed price.
Is it possible to obtain a Sharia compliant mortgage?
Yes. We can assist with Sharia mortgages.
What is the process to secure a mortgage offer (required documents and typical timeframe)
Our Seven Steps to Offer:
- Provide your details and requirements.
- We will conduct thorough market research and present a report containing all key facts, figures, and the most cost-effective and suitable mortgage options.
- Confirm your preferred rate option, and we will furnish you with a formal illustration.
- Complete and return your questionnaire form, along with the necessary documents listed below.
- We will submit the application and manage the process through underwriting and approval.
- Valuation will be conducted.
- Offer will be issued.
- Our target is to secure the offer within a timeframe of 2 to 3 weeks.
What documents do I need to provide?
Documents:
- Passport
- Proof of your home residence address
- Last 3–6 months bank statements
- Evidence and source of your deposit funds
- Evidence of income –
- Employed will be last 3 months payslips
- Self-employed company director – last 2 years finalised accounts
- Self-employed sole trader – last 2 year tax returns