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Lloyds Bank to withdraw expat mortgages on UK properties
| Published: | 13 Nov at 6 PM |
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Shortly after its international arm stopped lending to expats, Lloyds Bank UK announced that it was following suit and pulling the plug on its expat mortgage scheme for UK properties.
The move is bad news for expat workers planning to move back to the UK as many wish to have a secure property waiting for them after their contracts end. The withdrawal covers all Lloyds subsidiaries including Lloyds TSB Scotland, Halifax and BM Solutions, meaning that expats planning to return home within three years are no longer able to buy a house and let it out until they arrive.
According to Tom Harvey, MD of expat mortgage company OffshoreOnline, those wishing to buy a property in London and benefit from the capital’s emerging market will find it more difficult to obtain a mortgage. However, he added, returning expatriates with at least a 25 per cent deposit on a £200,000 plus property, should still be able to find a suitable loan.
Ironically, expat salaries abroad far exceed those in the UK and taxes are far lower, with job security at the present time far more reliable, especially for those on long-term contracts. In spite of the financial advantages of working abroad, Britain’s high-street banks are shutting down their expat mortgage schemes, with Lloyds stating that the sector is a very minor part of their overall business.
Paul Welch of LargeMortgageLoans advises expats to search for a loan through specialist companies with links to international banks willing to provide the service. He also recommends that those with existing UK mortgages should keep them going rather than pay them off in full in order to retain their credit history.
The move is bad news for expat workers planning to move back to the UK as many wish to have a secure property waiting for them after their contracts end. The withdrawal covers all Lloyds subsidiaries including Lloyds TSB Scotland, Halifax and BM Solutions, meaning that expats planning to return home within three years are no longer able to buy a house and let it out until they arrive.
According to Tom Harvey, MD of expat mortgage company OffshoreOnline, those wishing to buy a property in London and benefit from the capital’s emerging market will find it more difficult to obtain a mortgage. However, he added, returning expatriates with at least a 25 per cent deposit on a £200,000 plus property, should still be able to find a suitable loan.
Ironically, expat salaries abroad far exceed those in the UK and taxes are far lower, with job security at the present time far more reliable, especially for those on long-term contracts. In spite of the financial advantages of working abroad, Britain’s high-street banks are shutting down their expat mortgage schemes, with Lloyds stating that the sector is a very minor part of their overall business.
Paul Welch of LargeMortgageLoans advises expats to search for a loan through specialist companies with links to international banks willing to provide the service. He also recommends that those with existing UK mortgages should keep them going rather than pay them off in full in order to retain their credit history.
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