UK Expat Mortgages

If you’re a UK expatriate (expat) looking to purchase a property in the UK, you might find the process a bit different from applying for a standard mortgage. While there are some unique challenges, securing an expat mortgage is entirely possible with the right guidance.

This guide explains everything you need to know about getting a mortgage as an expat, including how the process works, deposit requirements, examples of lenders, and where to find expert support to secure the best deal.

For all our content on this topic, visit our dedicated expat mortgages page, which includes useful tools and links to all our content on this topic.

What is an expat mortgage?

It’s a type of mortgage product explicitly designed for expats looking to buy property at home in the UK. Nowadays, it’s much more common for people to work overseas as international expats. These mortgages can make home ownership a realistic option if you’re based abroad or are an expat returning to the UK.

Alternatively, if you’re an expat but looking to buy a property in the country where you currently reside or anywhere internationally, then you’ll need an overseas mortgage – which would work slightly differently as you’d need to do your research on all of the local rules and requirements before you apply.

Eligibility and deposits

For the most part, expat mortgages work similarly to standard mortgages. The main difference is that some lenders view expats as a higher risk than other borrowers, so they can have stricter lending criteria and more stringent deposit demands.

Deposit requirements

Your deposit can be a key factor in the process. Some lenders will request that you put down a larger deposit if you’re an expat. You may also face tighter rules around where your deposit comes from. The idea is to offset the additional perceived risk of lending to international and British expats returning to the UK.

A bigger deposit will reduce your loan-to-value (LTV) ratio and potentially reduce how much you’re borrowing. Most lenders will want at least a 25% deposit, and due to international anti-money laundering laws, you’ll likely need proof of where your deposit came from.

Here are a few examples of widely acceptable sources of deposit:

• Savings account – ideally from a UK bank, but some other countries and currencies can be used (depending on your lender).
• Investments – equities, bonds, and sometimes even commodities like gold.
• Sale of a property – or using equity from a second property by remortgaging (from the UK or overseas).
• Inheritance – as long as it’s gone through probate.
• Gifts – some lenders will consider a gifted deposit from a close relative (and a small few will allow gifts from friends or a third party), but many don’t permit gifts.

Lending criteria

The other main areas to be aware of when trying to qualify for an expat mortgage include the following:

How to get an expat mortgage

Securing a mortgage as an expat can be more complicated than if you were a resident in the UK, as there are a few more factors to consider. As a result, the smart first step is to speak with an expat mortgage broker with experience assisting people to navigate the mortgage process under similar circumstances. 

If you make an enquiry with us, our broker-matching service will match you with an advisor who specialises in this area. 

Your mortgage broker will then be able to help by offering the following services: 

• Assess your finances: This includes taking foreign earnings into account as well as any nuances such as being self-employed or having bad credit. A broker can advise on your eligibility for a mortgage in the UK or elsewhere and the amount you can borrow. 

• Explain the different mortgages available to you: You could plan to buy a property in the UK to rent out or use it as a holiday home when you visit. Maybe you plan to buy abroad but will rent that out too or live in it full time. Your circumstances will determine the kind of mortgage you need, and the criteria for each will differ. An expat mortgage specialist can help you navigate these scenarios to reach the right outcome.

• Find the right mortgage lenders: The pool of lenders from which to choose will likely be significantly smaller, with a few less familiar names, but a broker will know which lenders currently offer international mortgages and where to apply for the most competitive rates.
• Help compile your application: Extensive forms, checks, and evidence usually need to be completed and submitted to verify overseas earnings and identity. A broker can help you compile everything and advise you on how to pass the stricter affordability tests.

• Local residency and tax implications: Your mortgage broker can offer guidance on what you should do regarding your current residency and how buying a property may need to be recorded in your local jurisdiction for any potential tax liabilities, etc. 

• Advise on the course of action when/if you decide to return to the UK: A broker can help you remortgage onto a different arrangement should your circumstances change.

How much will an expat mortgage broker cost? 

Typically, for this type of mortgage, brokers will either charge a flat fee of between £500-£1,000 or between 0.5%-1% of the amount borrowed, usually payable upon completion. However, this all depends on the complexity of the application and can vary. 

Sometimes, brokers ask for part of their fee at different stages during the process, with a final payment once the loan is in place. Some brokers do not charge a fee and simply take a procuration fee (usually up to 0.5%) directly from the mortgage lender upon completion.

Expat mortgage calculator

If you want to know how much you can borrow with an expat mortgage, the answer will depend on the lender you speak to and the strength of your application. Most lenders will use income multiples, just like with a regular mortgage. Many will use an average multiple of 4-4.5x your income, but certain lenders will have tighter rules and a lower multiple to offset their risk.

Also, only some lenders will use income multiples; others will have their own unique methods for calculating affordability. If you want a better idea of how much you can borrow, try our expat mortgage calculator below. Remember that the surest way to get the most accurate results is to discuss your situation and finances with a specialist mortgage broker.

UK banks and lenders offering mortgages

There aren’t many high street lenders and banks open to the idea of an expat mortgage.

Here are a few examples of major UK lenders that do offer mortgages for expats:

Many popular lenders, such as Santander, Barclays, Natwest, and Halifax, will not even consider expat mortgages, regardless of your strength as an applicant. If you want to see the full range of lending options, speaking with a specialist broker who can access lenders and mortgages not advertised publicly is best.

Examples of current interest rates

With a fast-changing interest rate environment, applicable rates can vary wildly from month to month. The rates available for expat mortgages tend to be higher than those offered to applicants based in the UK who have never lived abroad.

Look at our rates table below to get an idea of the current deals available for expat mortgage applicants.

Please note that the above rates were accurate at the time of writing but are always subject to change. The best way to find the most up-to-date deals is to speak to a mortgage broker.

If you want to see the latest options, discussing your situation with an expert broker is the best course of action. They’ll be able to accurately represent the rates you’re likely to get with your home loan. Your broker can help you find a competitive rate and get a tailored lending arrangement that suits your needs.

UK expat Buy-To-Let mortgages

It is possible to get a buy-to-let (BTL) mortgage from a few lenders if you’re an expat. Along with the eligibility criteria already discussed, here are some additional points to keep in mind about BTL expat mortgages in the UK:

Speak to an expat mortgage specialist

Navigating this area of mortgages without expert advice can be extremely difficult. There are loads of moving parts to be aware of, and as an expat, there are many complex obstacles to overcome when trying to organise your finances and find a mortgage.

We offer a, broker-matching service. This means we’ll quickly assess your needs and then introduce you to a specialist mortgage broker with plenty of past success securing expat mortgages.

Just call 0330 818 7026 or make an enquiry. We’ll arrange a free, no-obligation chat between you and your ideal expat mortgage broker today.