Best Expat Mortgage Rates Comparison

If you live outside of the UK as an expat, but want to access the UK mortgage market, you can do so through an expat mortgage. Here, we look at the typical interest rate you could expect, what today’s best rates are, and how a broker could help you get the best deal.

First, take a look at our rates table below to get an idea of what expat mortgage deals are currently available.

The rates quoted above were correct at the time of writing (May 2023) and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time.

How to compare offset mortgage rates

The best way to compare rates and deals is to use a broker who specialises in offset mortgages. Make an enquiry with us and we’ll match you with the right advisor for free.

The benefits of using a broker to compare offset mortgages are as follows:

• Access to the entire offset mortgage market
• Exclusive rates and deals
• Bespoke advice about which mortgage to choose
• Help completing and filing the perfect application

Your initial conversion with the broker we match you with will be free with no obligation to proceed, and it won’t leave any marks on your credit reports.

What is a typical interest rate for an expat mortgage?

Currently (May 2023), average rates are between 4.7% and 5.54%, which is higher than with standard mortgages. Lenders charge more to offset the perceived higher risk of these loans with the range of products available being narrower too. Other factors, which may impact your ability to get the best rates, are:

• Lenders generally prefer salaries paid in GBP, and may only accept a few other currencies.
• If you live in a particular country on a lender’s “red” list, your application may be automatically refused (often due to the risk of money laundering).
• How long you have lived out of the UK may be a consideration too – with expats who have lived abroad under 2 years, usually preferred.

As with standard mortgage products, to get a better rate, you can improve your chances of approval if you have a higher deposit. Plus, if you have a good credit history, your application will be stronger (though a credit history from other countries can sometimes be tough to prove).

What rate to expect as a returning expat

There isn’t just one rate for expats moving back to the UK. Instead, rates depend on applicants’ financial situations and other factors. So, while as a returning expat you may have a smaller pool of providers, you could still potentially secure a standard mortgage rate. For, instance, HSBC currently offers a 5 year fix at 4.1%.

Lenders will determine how much to loan you, and at what rate, by looking at:

• Your credit history – Mortgage providers like to check your credit rating. However, if you have not lived in the UK for a long time, you may not have a credit history at all. Talking with a broker is your best bet if you find yourself in this situation.
• Your income and income source – If you are returning without a job, you won’t automatically be prevented from getting a mortgage. You’ll just have to approach lenders who may consider your earnings in a foreign currency or still deem you eligible due to other factors in your situation, such as another income source.
• If you have a correspondence address – Mortgage providers will typically want applicants to have had an address in the UK, used for correspondence, for around 3 years. You don’t need to own that property, however, so it could be a family member’s home.

Why use Online Money Advisor?

You should use our matching service because being paired with a handpicked offset mortgage specialist will boost your chances of securing the best interest rate available.

Getting the lowest rate for your expat mortgage is down to finding the best deal for which you are eligible. To ensure you find that deal, using a broker is extremely useful. They’ll minimise the stress of your application, but also know immediately with who you are best to make that application. Doing so can help save you time and money.

Give us a call now on 0808 189 0463 or make an online enquiry so we can match you with a broker who specialises in mortgages for expats. You can have a free, no-obligation chat with them and find out how they can help you get the best rate for the amount you need.