Owning a home in the UK is still a financial and lifestyle objective for many UK expats and foreign nationals. Whether it be because of family, relocation in the future or just to have something to go home to, ensuring an expat residential mortgage UK is usually the most important. But the question that most of the expats ask themselves first is: how long is the whole process?
The short answer: it typically takes 8-12 weeks to process an application and conclude, but the exact period varies depending on your situation, your chosen lender and how ready you are with documents. Now we will divide the process into smaller bits to be aware of what to expect.
Initial Preparation Phase: 1 to 2 Weeks
Expats must prepare the required documentation before they are able to submit an application. This phase is critical, as delays in this phase can shift the whole schedule backwards.
Some important documents are usually needed, such as:
- Identity document and residence (passport, visa, foreign address proof)
- Income (payslips, employment contracts, tax returns)
- Bank statements (usually 3 to 6 months)
- Credit report (UK, versions of which may be provided, as well as the country of residence)
To expats, the process is time-consuming compared to that of UK residents, largely because of difficulties relating to confirmation of overseas earnings and currency exchange considerations. Using an expert expatriate mortgage broker like Expat Mortgages UK will help to accelerate this process because you will be sure of the specifics of the documentation that your chosen lending agency will require.
Mortgage Application and Agreement in Principle: 1 Week
The second thing to do after your documents are ready is to obtain an Agreement in Principle (AIP). This is whereby the lender validates the extent to which they will loan out to you, depending on your financial background initially.
It normally takes a week to get an AIP, provided all the documents are submitted properly. To expats, this is critical as most sellers and estate agents in the UK will wish to receive evidence of your ability to acquire financing first before they will consider acting on your proposal.
The Complete Mortgage Application: 2-4 Weeks
Once you get your AIP, you can complete the entire mortgage process. This is the point where the lender will examine the details of your finances in more depth. For expats, this may involve:
- Checking revenues received in foreign currencies.
- Verifying that s/he is employed with foreign companies.
- Examining overseas bank accounts.
- View your international or UK credit profile.
This may take up to two to four weeks, depending on the complexity of your situation. Documents solicited by lenders may also take up time at this point, as they may require more time than is provided.
Underwriting and Property Valuation: 2 to 3 Weeks
The lender will organise the valuation of the property that you want to buy once you have placed your application. This guarantees that the property is worth as much as you are paying and the lender is secured.
Simultaneously, the underwriting team will critically examine your financial profile and supporting documentation. Underwriting can also require a longer period than the UK residents due to the additional cheques that are necessary on the part of expats.
Time Taken to Mortgage Offer: 3 to 4 Weeks
After the underwriting process is done and the property valuation has been passed, the lender issues the formal mortgage offer. Here, the work becomes more of the solicitor or conveyancer.
Examples of what is involved in this last stage are:
- Legal work and conveyancing checks.
- Exchange of contracts.
- Closing of the mortgage deed.
- Finalising the property purchase.
This phase normally lasts three to four weeks, but may last longer, provided there are delays in the legal procedure, especially when you are carrying out the purchase remotely abroad.
How to Speed Up the Process
Some advice on how to get an expat mortgage fast is:
- Make all papers ready beforehand.
- Use an expat mortgage specialist advisor who is familiar with which lenders accept expat applications.
- Be prompt in responding to requests for further details.
- Utilise online resources, such as the WiiN portal, which can be used by Expat Mortgages UK to keep things updated and eliminate time delays during communication.
Summary: Prepare Early, so you have a Smooth Mortgage Ride
To the majority of the expats, the process of obtaining a residential mortgage in the UK will require about two to three months. It may appear a time-consuming affair, and from that point of view, it is important to be prepared and have a broker on your side who has the knowledge of the expat market.
At Expat Mortgages UK, we are experts in taking foreign investors and residents through it and to make sure that the processing of the applications is done in a smooth and efficient manner. Having access to the entire mortgage market, including specialist expat lenders, we assist clients to achieve the best deals and shorten the waiting time.
Ready to start your journey? Talk to the specialists of Expat Mortgages UK today and allow us to take you a step closer to your UK home.
