Real estate is one of the best areas of investment for anyone who is willing to venture into the property market. The best thing about real estate investing is that it does not require a lot of money. All you need to have is a small amount of money to pay the deposit, a great credit rating and a decent income. When borrowing from most lenders, you must be a citizen to qualify for a mortgage. This is because mortgages are long term contracts and expats may not be in the country long enough to pay off the loan. The good news is that there are many lenders who now offer mortgages for expats in the UK. As long as you work in the UK, have a decent income and a great credit rating, these firms can help you buy property that you can live in or rent.
Why Buy Property in the UK?
The UK is one of the fastest growing real estate markets in the world. Property prices are always going up at a fast rate while rent is always rising. The beauty of owning property in the UK is that many people from around the world, including Africa, South America, Asia, North America and other parts of Europe want to live, work or study in Europe’s financial capital. This makes real estate in the UK the perfect place to put your money and get high returns.
Factors to Consider When Choosing a Lender
i) Interest Rates
The mortgage rates charged by mortgage lenders differ from one lender to the next. While you may be an expat, you are not willing to pay a higher rate of interest just because you are not a citizen. For this reason, you should take your time to identify the most affordable lender. The ideal lender must have mortgage products that are competitively priced. There should also not be any hidden charges imposed on expat mortgages, so be sure to read the mortgage agreement before signing it.
ii) Types of Properties Financed
To minimize risk, some lenders only finance rental properties, not private residencies. If you want to buy a house that you are going to live in during your stay in the UK then sell or rent it out after you go back home, you should find a mortgage company that is willing to finance that kind of property.
iii) Deposit Required
Some lenders may impose stricter mortgage requirements on expats, while others don’t. For this reason, you should compare the amount of money each of the lenders on your shortlist is asking for before making a decision. The lower the deposit the better for you.
No Comments