how to borrow to buy a UK property from abroad

“As safe as houses” might not ring as true as it once did, but the British property market is still considered a relatively good long-term investment – including for anyone living outside the UK.

Overseas buyers have benefitted in recent times from a weaker pound and falling house prices, particularly in London, making property here more affordable. This, coupled with the increased mobility of the global workforce since Covid, has led to a growth in expat mortgages, albeit from a low percentage.

“The rise in people living and working abroad has pushed expat mortgages further into the mainstream, with lenders steadily widening their criteria to reflect that shift,” said Charlotte Preece, mortgage adviser at The Mortgage Mum.

But it’s not always a simple process. Anyone who wants to borrow to buy a property in Britain first needs to secure a specialist expat mortgage.

Here, Telegraph Money explains how expat mortgages work and how to get one.

While the name suggests these mortgage products are aimed at British citizens living abroad, this isn’t actually the full picture.

Expat mortgages can be taken out by UK or foreign nationals living and working overseas who want to gain or retain a property in the UK. Most commonly, these mortgages are held by people living in Australia, America, Saudi Arabia and the UAE, according to UK Expat Mortgage.

In the case of British expats, a property is commonly kept and rented out ahead of their planned return. As with traditional mortgages, loans can be residential, buy-to-let or holiday let and are structured as interest-only or repayment, with fixed-rate and variable deals available.

Expat mortgages are niche products, representing around 1pc-2pc of the total UK mortgage market and are offered by around 30 lenders.

While you don’t necessarily need a link to the UK to take out an expat mortgage, it helps. “The majority of lenders require applicants to be UK nationals or to have previously lived in the UK, hold a UK bank account, and have an established UK credit footprint,” said Justin Whitelock, founder of mortgagelondon.com.

“Although some lenders will consider foreign nationals living abroad, criteria are typically stricter and product availability is more limited. A demonstrable link to the UK – whether citizenship, previous residence, family ties, or intention to return – significantly improves eligibility.”

Even a UK credit card can improve your chances of getting approved for an expat mortgage, as it shows lenders you have a UK credit footprint and history.

As expat mortgages are a specialist product, not all providers offer them, but there are a few recognisable names working in this space, including HSBC, NatWest International, and Skipton and Suffolk Building Societies.

It’s not just UK institutions or their international arms that offer this service, said Mr Whitelock: “A significant proportion of lending is carried out by specialist lenders and offshore banks rather than mainstream high street institutions.”

While structurally similar, there are a number of key differences that those taking out expat mortgages need to be aware of.

The process of assessing income is much more complex than with a traditional mortgage. This is because expats tend to be paid in foreign income, and these earnings are subject to currency fluctuations out of the lender’s control.

To account for this, lenders apply a “haircut” which shaves off between 20-30pc of a borrower’s earnings when calculating affordability.

As an example, with a 20pc haircut, someone earning the equivalent of £100,000 in a foreign currency will have their affordability calculated at £80,000, protecting them and the lender from any exchange rate volatility.

In addition, anything outside of your “core” income is often ignored. “Bonuses and commission often don’t count, and buy-to-let stress-testing is more aggressive than standard,” said Ms Preece.

Those taking out mortgages to fund holiday homes or buy-to-lets should assume more checks and additional stress-testing than those lending for a property that’s for personal use.

While regular mortgage underwriting is usually an automated process, expat mortgages require manual underwriting. This can lead to the process taking longer – between four and eight weeks, depending on the borrower’s circumstances and country of residence. You may also need to provide additional documentation.

Expat mortgages come with more risk, so lenders protect themselves by asking for higher deposit amounts – usually at least 25pc.

As expat mortgages are riskier, and fewer lenders offer them, the interest rates on these products also tend to be slightly higher.

“Rates will almost always be higher than those for UK resident borrowers because the lender will need to account for their additional levels of risk,” said Ryan Radford, founder of Expat Mortgage Expert.

“The expat tracker products still track the Bank of England Bank Rate, as do domestic mortgages. Variable rates may be more sensitive to lender pricing decisions influenced by currency risk and wider international market conditions.”

Ms Preece added: “As of early 2026, rates broadly range from 5pc-6pc, though the strongest applicants at lower loan-to-values can access rates in the low 4pc range.”

While you can approach a lender directly, they all have different criteria, which may change depending on the currency a borrower is paid in, their country of residence and their loan-to-value ratio.

A mortgage broker with experience in this sector can help you navigate the various options. Always make sure that they are authorised and regulated by the Financial Conduct Authority (FCA). Many lenders may even insist that you use a UK-regulated mortgage broker before proceeding with your application.

In short, yes. The more stable a country’s economy and currency, the easier it will be to secure an expat mortgage – and one that’s at a lower rate.

Many lenders won’t sign off on loans to those living in countries subject to UK sanctions, where there is a high level of money laundering, a weak financial regulation system in place, conflict or political instability. In these cases, you will definitely need to engage an expert and prepare yourself for a lengthy application process.

“Some currencies will be excluded, particularly if they are volatile or less commonly traded,” said Mr Radford. “Major currencies such as USD, EUR, CAD, AUD and AED are widely accepted.”

Aside from the stricter underwriting, the entire application process for expat mortgages is more complicated, with additional anti-money-laundering and identity checks.

“These checks will typically include overseas proof of address, certified or translated payslips and bank statements,” said Mr Radford. “The borrower will need to provide evidence of their residency status and clear documentation of the origin of the deposit funds, especially if the deposit is in another currency.

“Lenders and solicitors must verify the source of funds in full, not just the final transfer, which means providing a complete audit trail of where any deposit has come from.”

You may also be required to provide international credit reports and employer reference letters if you employed. Those self-employed are likely to be asked for even more complex documentation.

Everything must be certified by a solicitor based in the foreign country, and lenders will require documents such as payslips, bank statements and deposit confirmations to be translated into English, which you may have to pay for.

For these reasons, borrowers should expect to liaise with more people and for their application to take longer, often up to six months. “Budget four to five months end-to-end,” suggested Ms Preece. “And speak to a broker three-to-six months before you need to move.”

The product fees vary from low, fixed fees of between £1,000-£1,500, to percentage-based arrangements, usually of around 2pc – but these can be higher for riskier loans such as buy-to-let expat mortgages.

When deciding on a mortgage, it’s important to look at the combined cost of the fee and the interest rate, as sometimes the benefit of a lower rate is offset by a higher product fee. Like standard mortgages, you will also need to pay a valuation fee and solicitors’ costs.

In addition, remember that non-UK residents buying in England or Northern Ireland are subject to an additional 2pc stamp duty surcharge – although a refund on this is possible should buyers meet the residency conditions at a later date.

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