Remortgage Solution for UK Expat: Keeping Property and Maximising Rental Income

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

Can I remortgage while living abroad?

Yes, but options such as the Kent Reliance expat remortgage can be limited. Staying with your current lender is often the easiest solution if you’re an expat.

Can I add mortgage fees to the loan?

Yes, most lenders allow you to add product and arrangement fees to the loan. However, interest will accrue on these amounts over the mortgage term.

Why choose an interest-only mortgage?

Interest-only mortgages reduce monthly payments and are ideal if you plan to sell the property later or want to maximise rental profits. You’ll need a viable repayment strategy, such as selling the property, to clear the balance.

What happens at the end of my fixed rate?

Your mortgage typically switches to the lender’s Standard Variable Rate (SVR), which is often higher. You can remortgage again or switch to another deal to avoid rate increases.

Can I repay the mortgage early?

Yes, but early repayment charges may apply during the initial fixed-rate period. In this case, it was 4% in year one and 3% in year two.

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.

Contact Deal Direct today for a free consultation and discover how we can help you remortgage with ease—even from the other side of the world.