Customer Overview
A UK-born property owner in her late 40s, currently residing in New Zealand and working in a professional field, needed to remortgage a buy-to-let property she owns in the UK. Her key objective was to secure a competitive rate while managing the property remotely and ensuring the income from rent continued to exceed mortgage costs. The Kent Reliance expat remortgage served her purpose perfectly.
The Challenge: Remortgaging as an Overseas Landlord
With her current mortgage rate due to expire, our customer wanted to avoid rolling onto a higher standard variable rate. However, living overseas presented unique challenges:
- She preferred to avoid switching lenders to reduce application complexity while overseas.
- She required a short-term fixed rate due to possible intentions to sell the property soon.
- As a landlord, she needed a remortgage solution that would preserve the property’s self-financing status.
- She wanted to add the mortgage fees to the loan to preserve cashflow, while still benefitting from a competitive rate.
Our Remortgage Solution
After a thorough assessment of the customer’s circumstances, objectives, and future plans, our expert mortgage advisors recommended a 2-year fixed interest-only mortgage with her existing lender, Kent Reliance. This solution included the expat remortgage, which provided several advantages:
- Ease of Process: Staying with the current lender avoided the added complexities of a new application while managing from overseas.
- 2-Year Fixed Rate at 4.64%: This short-term product aligned perfectly with her intention to potentially sell the property in the near future.
- Interest-Only Structure: Ensured that monthly payments stayed below the rental income, maintaining positive cashflow.
- Sale of Property: Declared as the repayment vehicle, suitable for an investment property.
- Product Fees Added to Loan: £6,334.23 in fees added to the loan balance for minimal upfront cost and maximised liquidity.
Affordability Summary
- Initial Monthly Payment: £840.90 (interest-only)
- Estimated Monthly After Rate Ends: £1,448.16
- Stress-tested Future Rates: Up to £1,991.89/month
The client confirmed this was affordable and understood the variations that may come if rates change, a common scenario with any expat remortgage like that offered by Kent Reliance.
Additional Features
- No tie-in period post fixed-rate term
- Fee-free valuation and legal services
- Fast processing with simplified documentation
Positive Outcomes Achieved
The remortgage solution successfully met the customer’s key requirements. By securing a 2-year fixed interest-only mortgage, she achieved:
- Minimal Disruption: No need to prove affordability or switch lenders while managing from overseas.
- Continued Positive Cashflow: New mortgage payments remained comfortably below rental income.
- Flexibility to Sell Without Penalties: Only a 2-year lock-in provided an ideal window for resale.
- Cost Efficiency: While fees were added to the loan, the total cost over time was manageable and allowed easy short-term planning.
“Even from overseas, the whole process was smooth. I appreciated being able to stay with Kent Reliance without having to jump through endless hoops, and now my property remains profitable.” – A satisfied UK property owner residing in New Zealand
FAQs
Need Help Managing a UK Property from Abroad?
Whether you’re an expat landlord or UK-based homeowner, Deal Direct experts offer bespoke remortgage solutions that align with your financial goals and personal circumstances.
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