In the world of property finance, there are few circumstances more complicated than being an international self-employed mortgage applicant. These two factors in isolation make it tricky to secure high-value finance. Combined, it can feel almost impossible to find a mortgage that meets your needs, whether you’re buying or refinancing.
This can quickly become incredibly frustrating. Whether you’re a global entrepreneur with multiple income streams, an international company director, or a contractor with clients across the world, your net worth may be significant – meaning you can easily service a large loan.
Unfortunately, the majority of mortgage providers are unable to assess international self-employed mortgage applicants so simply. For lenders, the issue is always one of risk – and the dual factors of an individual living abroad, and also having variable income as a result of being self-employed, invariably creates a higher-risk situation.
However, as the Articus Finance team regularly proves, difficult does not mean impossible. By considering the subtleties of your circumstances, structuring your application appropriately, matching you with the right lender, and negotiating hard for a favourable outcome, even the trickiest of cases can find a solution.
Understanding your circumstances as a global self-employed mortgage applicant
Securing a UK mortgage as an international self-employed borrower is tricky. The first step is simply to create a clear picture of your scenario. A number of factors will affect your chances of a successful application, particularly since different lenders have different risk appetites for varied types of clients. The below is by no means an exhaustive list, but circumstances we often see include:
- Self-employed British expats who have moved abroad and wish to refinance a residential property to a buy-to-let mortgage
- Self-employed British expats who live abroad, but wish to maintain a British residence or build a property portfolio in the UK
- Global business people (non-UK passport holders) who wish to own a residential property in the UK to stay in while they visit the country
- Self-employed foreign nationals looking to purchase property for their family to live in (for example, when a child is studying at a British university)
- International investors who wish to start or expand a UK buy to let property portfolio
Whatever category you fit into, taking the time to understand your circumstances upfront creates the best chance of structuring your case appropriately and matching you to the right lender.
Structuring your case appropriately
Self-employment can take many different forms, and lenders will look at your case differently depending on how you are self-employed and the way you take your income. For example, you may primarily receive income through dividends, or the global nature of your business could mean you have income in different currencies.
Lenders will also view your case differently depending on whether you are a sole trader or the director of one or more limited companies. Whatever your situation is, the use of a skilled accountant and an expert broker can ensure that your situation is presented in the clearest light, making it easier for a lender to look favourably on your application. The right accountant and broker can also help to overcome challenges such as not having two years’ worth of accounts to show to a prospective lender.
Finding the appropriate lender
It’s certainly true that many lenders won’t work with international self-employed applicants, particularly in terms of the high street banks. The good news is that no matter your circumstance, there is likely a lender somewhere in the market who can meet your needs – whether you’re a British expat in Australia hoping to refinance a home to buy to let, a Saudi Arabian national buying a flat in London, or an American entrepreneur investing in UK property.
However, finding those lenders is almost impossible without the right assistance, particularly because each lender’s risk appetite continually changes. That’s why the team at Articus is in constant communication with a full spectrum of UK mortgage lenders, meaning we always have an up-to-date view on the best possible match for your case.
Negotiating for the best mortgage rate
From prestigious private banks to niche specialist lenders, our team can assist international self-employed mortgage seekers no matter how complicated your background or the mortgage application in question.
Better still, our strong lender relationships mean we’re able to negotiate for the best rate on your behalf. Fortunately, mortgage rates in the UK are currently at historic lows – so while self-employed global applicants of high-value loans won’t be able to access the headline rates offered by mainstream banks, you may be pleasantly surprised at the outcome you’re able to achieve.
Want more advice about financing UK property as a self-employed expat or foreign national? Our downloadable guides can help. Or, speak to a broker to discuss your case directly.