Expat mortgages

Buying a property in the UK as a non-resident or expat is certainly possible, but buyers need to be aware of both tax and currency.

The UK property market has traditionally been one of the strongest in the world and despite house price falls during the most recent recession, property investment in the UK remains active.

One of the foremost concerns for non-resident buyers of UK property is tax. If the property purchase is part of corporate relocation, tax advice may be available.

However, tax advice is available from a number of firms, including local financial advisers. Getting the right tax advice can save considerable sums when it comes to buying a UK property as a non-resident.

Currency services for expat mortgages

Currency has a substantial impact on how cost effective your UK property purchase is. For instance, UK banks may offer lower mortgage rates and charge lower arrangement fees than offshore investment banks and international mortgage lenders.

When buying a property in the UK as an expat or non-resident, currency is a prime consideration. Currency services are offered by a variety of offshore banks and specialist currency exchanges. All of these currency services allow non-resident UK property buyers to offset the risk of currency fluctuations between putting down a deposit and completing the property transaction.

This can be particularly acute in the case of off-plan property purchases, where the average property purchase time can rise from between six to 24 months. In volatile markets, even the standard international property purchase time of between six and eight weeks can see considerable currency shifts.

Currency risk

Any property purchase that takes place across borders is subject to currency risk, and if purchased with a mortgage loan, every subsequent mortgage payment could fluctuate depending on currency, meaning non-resident buyers have to be very aware of changes.

Furthermore, charges for international transfers of money can soon add up. Specialist currency exchange providers will allow non-resident buyers to automate their payments at a fixed exchange rate for as much as two years.