If you’re thinking of adding a UK buy-to-let property to your retirement portfolio but are living in Spain, you might be wondering – can I even get a mortgage? That’s the question a reader of Inews asked their mortgage expert.

The short answer is, yes – but it’s not as straightforward as if you were still living in the UK.

Why Are UK BTL Mortgages Harder To Get When You’re Living Abroad?

Banks view people living abroad as a higher risk because it’s harder to check your income and to manage a property from a distance.

So How Do You Do It?

Don’t worry, there are specialist mortgages for expats, though you’ll likely have to jump through a few more hoops. Here’s the lowdown:

• Higher Deposits: You’ll need to put down a bigger deposit, usually between 25-35% of the property’s value.
• Higher Interest Rates: You’ll pay more for your mortgage because you’re seen as a riskier borrower.
• Stricter Criteria: You’ll have to meet all the usual criteria, but they’ll be more tightly enforced.

What Proof Of Income Will I Need?

The bank will want to know that you have a steady income and will want to see proof of it, so get those documents ready!

• Pension Statements: If you’re getting a pension, provide detailed statements showing your payments or forecasts.
• Bank Statements: Provide statements that show your income and outgoings, this is a key part of proving you can afford the mortgage.
• Other Investments: If you have other income sources, like dividends or rental income, provide documentation, including your tax returns.

Should I Use A Broker?

It’s a good idea to use a broker who specialises in dealing with expat mortgages. They’ll know all the ins and outs of what’s required and will be able to help you find a lender who will work with you.

The Bottom Line

It’s entirely possible to get a BTL mortgage in the UK while living in Spain, but it’s important to be prepared and do your research. Make sure you have all your documents ready and find a broker who can guide you through the process.

Don’t forget to seek professional advice about the tax implications and your specific circumstances. This will help you avoid any nasty surprises and make your investment a success!