The Intermediary – March 2026 - Flipbook - Page 54
SPECIALIST FINANCE
Opinion
Using your home to
fund a move abroad
M
ore clients are
moving overseas.
It can be for work,
family, lifestyle,
or all three. For
many, the first
question is simple. Do they sell the UK
home, or keep it?
The Office for National Statistics
(ONS) estimates British national
emigration was 252,000 in the year
ending June 2025. It also puts net
migration for British nationals at
-109,000 over the same period.
For advisers, the point is choice. If
a client wants to keep a UK base, or
keep an asset in Sterling, they need a
clear plan for the mortgage. They may
also need cash for the move, or for a
purchase abroad.
Where let-to-buy fits
Let-to-buy can be the right route in
some cases. In simple terms, the client
keeps their current home, rents it
out, and switches the mortgage onto a
buy-to-let (BTL) deal. If there is also a
linked purchase, the client can end up
running two mortgages at once.
It is worth being clear on language.
If there is no linked purchase, you
are oen looking at a buy-to-let
remortgage rather than a classic letto-buy. The core point is the same.
You are moving a residential home
onto a lending basis that allows it to
be let, and you are checking that the
numbers still work once the client
is overseas.
Supporting the client
A move abroad oen comes with a
fixed date. A forced sale can mean a
weak price. Renting out the home can
take the pressure off the timetable.
It can also support the move
financially. In many cases, switching
the current home onto a buy-to-let
deal can release some equity. That
money can support a deposit and costs
abroad. It can also help build a buffer.
That buffer maers when the client is
52
The Intermediary | March 2026
a landlord from a distance. Rent can
help cover the mortgage on the UK
home. It may also leave a surplus. But
advisers should not let clients plan
on best-case figures. Voids, repairs,
agent fees, and tax can change the
picture fast.
HITEN GANATRA
is managing director
at Visionary Finance
What lenders focus on
Most lenders will want evidence that
the property will rent for enough to
support the mortgage. They will also
look at the client’s income, credit
history, and wider commitments.
Equity maers, too. A common rule of
thumb is around 20% to 25% equity in
the property being let, but this varies
by lender and by case.
Some lenders also have age limits,
and some have tighter rules for clients
who will be living overseas. This is
where early lender checks can save
you a lot of time.
Before you place the case
If you do these three checks on day
one, you cut down delays later:
Get a real rent view: Ask for a leing
agent estimate and be clear on likely
rent, not hopeful rent.
Check lender rules on overseas
clients: Look at how the lender treats
foreign income, non-UK residency,
and contact arrangements while the
client is abroad.
Stress test the numbers: Ask what
happens if the property is empty for
a period, or if rates rise at the end of
the initial deal.
If the numbers do not work, it will not
work. It is that simple.
Navigating risks
Let-to-buy is not a quick fix. Being a
landlord is a real duty, especially from
overseas. The client needs a plan for
safety checks, repairs, and times when
there is no rent coming in.
There are also rules on energy
rating, property standards, and tenant
rights. These rules change. Clients
A forced sale can
mean a weak price.
Renting out the home
can take the pressure off
the timetable”
should get proper leing and legal
advice, and advisers should be clear on
where their own role starts and ends.
Tax maers, too. Rental income
must be declared, and the client may
face extra tax depending on their
wider position and where they live.
This is a tax advice point, not a guess.
Rates can be higher than on a
standard residential deal. If the loan
is interest-only, the client also needs
a clear plan for how they will repay
the balance.
Start with the client’s timeframe.
If they may return to the UK in a
few years, keeping the home can
make sense. If selling now would
force a rushed decision, it is worth
exploring options.
Then look at the rent and the costs.
If rent is likely to cover the mortgage
and running costs with some room,
it may work. If there is no buffer, or
the client does not want the duty of
being a landlord from abroad, it may
not be right.
In many cases, the best first step is a
realistic rent view from a local leing
agent. Aer that, a mortgage adviser
can check lender rules on rent, equity,
and what the client can borrow. ●
