Ben12345 Posted February 4, 2022 Share Posted February 4, 2022 Hi guys, Hoping someone can help. Is it possible for me to get a buy to let mortgage in the UK while i live in Australia? I want to buy a property for my retired mother to live in and wondered if anyone has ever bought property before and what the max LTV is etc? What proof of earnings they look at from Oz? Thanks for your help. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 4, 2022 Share Posted February 4, 2022 You can get an expat mortgage but the interest rates are crippling. If you’re going to let it to your Mum then you can’t claim any tax deductions in Australia 1 Quote Link to comment Share on other sites More sharing options...
Tulip1 Posted February 4, 2022 Share Posted February 4, 2022 Buy to let mortgages are usually given against the income the property will generate rather than your usual income. It is often the case though that the terms and conditions of a buy to let mortgage do not allow family members to be tenants so worth checking that out. Quote Link to comment Share on other sites More sharing options...
Tulip1 Posted February 4, 2022 Share Posted February 4, 2022 Buy to let mortgages are usually given against the income the property will generate rather than your usual income. It is often the case though that the terms and conditions of a buy to let mortgage do not allow family members to be tenants so worth checking that out. Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted February 19, 2022 Share Posted February 19, 2022 (edited) On 04/02/2022 at 11:53, Ben12345 said: Hi guys, Hoping someone can help. Is it possible for me to get a buy to let mortgage in the UK while i live in Australia? I want to buy a property for my retired mother to live in and wondered if anyone has ever bought property before and what the max LTV is etc? What proof of earnings they look at from Oz? Thanks for your help. Buy to Let always comes with the stipulation that you can't have family living in it while the mortgage is in place. So you would need a standard UK mortgage (which will also be cheaper in repayments anyway so not sure why you would have chosen buy to let anyway) In answer to your question though, yes you can get a B2L mortgage for a UK property despite living in AUS (although not all provides will over it), however as stated above a B2L is not appropriate in your circumstances (family living in property) Edited February 19, 2022 by Ausvisitor Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 19, 2022 Share Posted February 19, 2022 30 minutes ago, Ausvisitor said: In answer to your question though, yes you can get a B2L mortgage for a UK property despite living in AUS I thought that was pretty much impossible, unless you're willing to get a mortgage with one of those specialist expat companies, who charge very high interest rates? Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted February 19, 2022 Share Posted February 19, 2022 10 hours ago, Marisawright said: I thought that was pretty much impossible, unless you're willing to get a mortgage with one of those specialist expat companies, who charge very high interest rates? That is one option If you have enough assets left in the UK and can prove rental income and put down 40%+ almost any bank would accept you - but you'd have to go through their broker/referral arm and not the general public retail system (similar rates of interest though) Quote Link to comment Share on other sites More sharing options...
DukeNinja Posted February 19, 2022 Share Posted February 19, 2022 1 hour ago, Ausvisitor said: That is one option If you have enough assets left in the UK and can prove rental income and put down 40%+ almost any bank would accept you - but you'd have to go through their broker/referral arm and not the general public retail system (similar rates of interest though) Not quite. A significant number of financial institutions will not consider you due to tax residency status. 2 Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted February 20, 2022 Share Posted February 20, 2022 2 hours ago, DukeNinja said: Not quite. A significant number of financial institutions will not consider you due to tax residency status. Maybe that's true, we have been told we won't have any issues but we would do it through a company anyway and that would be tax resident in the UK even though the owners of the company aren't Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 20, 2022 Share Posted February 20, 2022 42 minutes ago, Ausvisitor said: Maybe that's true, we have been told we won't have any issues but we would do it through a company anyway and that would be tax resident in the UK Yup, that's the important bit, AFAIK. 1 Quote Link to comment Share on other sites More sharing options...
AliG Posted April 20, 2022 Share Posted April 20, 2022 On 19/02/2022 at 11:19, Marisawright said: I thought that was pretty much impossible, unless you're willing to get a mortgage with one of those specialist expat companies, who charge very high interest rates? Im looking into this now and HSBC seem to offer something pretty close to a normal UK BTL for overseas applicants IF you meet the criteria... https://www.hsbc.co.uk/mortgages/non-uk-residents/ 2 Quote Link to comment Share on other sites More sharing options...
DrDougster Posted April 23, 2022 Share Posted April 23, 2022 On 04/02/2022 at 03:29, Marisawright said: You can get an expat mortgage but the interest rates are crippling. If you’re going to let it to your Mum then you can’t claim any tax deductions in Australia This "interest rates are crippling" is an example of repeat until true on this forum. Google very quickly gets you to the above link - https://www.expat.hsbc.com/mortgages/products/buy-to-let/ HSBC are hardly a niche specialist lender. Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted April 24, 2022 Share Posted April 24, 2022 12 hours ago, DrDougster said: This "interest rates are crippling" is an example of repeat until true on this forum. Google very quickly gets you to the above link - https://www.expat.hsbc.com/mortgages/products/buy-to-let/ HSBC are hardly a niche specialist lender. You may be correct on the rates piece, but Marisa is correct on the let to family bit, no lender allows a BTL for a rent to family Quote Link to comment Share on other sites More sharing options...
ramot Posted April 24, 2022 Share Posted April 24, 2022 (edited) 25 minutes ago, Ausvisitor said: You may be correct on the rates piece, but Marisa is correct on the let to family bit, no lender allows a BTL for a rent to family Edited April 24, 2022 by ramot Quote Link to comment Share on other sites More sharing options...
calNgary Posted April 25, 2022 Share Posted April 25, 2022 15 hours ago, Ausvisitor said: You may be correct on the rates piece, but Marisa is correct on the let to family bit, no lender allows a BTL for a rent to family Would the OP be ok if they DIDNT actually charge Mum rent ? Cal x Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 25, 2022 Share Posted April 25, 2022 2 hours ago, calNgary said: Would the OP be ok if they DIDNT actually charge Mum rent ? But then they wouldn't be "letting". Quote Link to comment Share on other sites More sharing options...
AliG Posted April 25, 2022 Share Posted April 25, 2022 21 hours ago, Ausvisitor said: You may be correct on the rates piece, but Marisa is correct on the let to family bit, no lender allows a BTL for a rent to family HSBC also do residential mortgages for overseas applicants - (i think they treat the property as not your primary residence ie a 2nd home). Its not clear whether this includes new purchases, or only remortages of properties owned already - https://www.hsbc.co.uk/mortgages/non-uk-residents/ If it does cover purchases then Ben may be able to take out a residential mortgage from Aus for a property in UK - it would be a repayment mortgage rather than interest only, and (Aus) income requirement is quite high (£75,000) might be worth giving them a call. Alternative option might be for Ben to remortgage and release equity from any property owned in Aus to raise enough cash to send back to UK and buy somewhere outright... Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted April 25, 2022 Share Posted April 25, 2022 9 hours ago, calNgary said: Would the OP be ok if they DIDNT actually charge Mum rent ? Cal x No, there are two issues here. Firstly in order to have the BTL the rent must cover (and usually exceed) the monthly payments. You might get away with this for a short while but you'd never get a refinance without proof of rentability Secondly the reason you can't have a family member in the property is to do with eviction related to non payment of mortgages, it gets really messy trying to evict family members and so it is easier just to say no to them being allowed to rent it 1 Quote Link to comment Share on other sites More sharing options...
calNgary Posted April 26, 2022 Share Posted April 26, 2022 19 hours ago, Ausvisitor said: No, there are two issues here. Firstly in order to have the BTL the rent must cover (and usually exceed) the monthly payments. You might get away with this for a short while but you'd never get a refinance without proof of rentability Secondly the reason you can't have a family member in the property is to do with eviction related to non payment of mortgages, it gets really messy trying to evict family members and so it is easier just to say no to them being allowed to rent it Ahh ok, that makes sense now , thank you. Cal x Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.