Expat mortgages
Living overseas doesn't mean you can't buy property in the UK - here's how expat mortgages make it possible.
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What is an expat mortgage?
If you're a UK national living abroad and you're thinking about buying property back home, you've probably come across the term "expat mortgage." It's a type of mortgage designed specifically for British expats. Whether you want to invest, have a UK base, or are planning to return in the future, this could be the route for you.
In a nutshell, an expat mortgage is a loan for people who live overseas but want to buy or remortgage property in the UK. Since you're working abroad, some UK lenders might see you as higher risk, but that doesn't mean it's not doable. In fact, with the right guidance, it can be pretty straightforward. Let's break it down.
How expat mortgages work
The biggest difference between a regular UK mortgage and an expat mortgage is your residency status. Since you live abroad and likely earn in a foreign currency, lenders treat you a little differently. They need to account for things like currency fluctuations, your tax situation, and local employment laws.
The most common option is an expat buy-to-let or second home mortgage, though some residential options exist. If you're planning to rent the property out, lenders will want to see your projected rental income and a good credit history. For second homes, your income and ability to pay are key.
Let's say you live in Dubai and earn in AED. You want to buy a two-bedroom flat in Manchester to rent out. A lender will look at your AED income, check your UK credit history, and ask for proof of earnings and possibly a larger deposit – around 25% or more. If everything checks out, you could secure a buy-to-let mortgage - with interest-only repayment terms - fairly easily.
What lenders look for in expat mortgage applicants
Not all lenders offer expat mortgages, and those that do often have strict criteria. You'll likely need to go through a specialist broker to access the right deals. Here's what they'll want to see:
- Stable income: You'll need to show consistent earnings, usually through payslips, contracts, or tax returns. If you're self-employed, expect to provide even more detail.
- Proof of residency: You'll need documents showing where you live, like utility bills or a residency permit.
- Credit history: Your UK credit score still matters. Make sure it's healthy and that any old UK accounts are in good standing.
- Deposit: Typically, you'll need at least 25-35% of the property's value upfront. The more you can put down, the more you'll find competitive rates.
- Currency consideration: Lenders may adjust their calculations based on your currency. Some prefer income in major currencies like USD or EUR.
Summing up
Securing an expat mortgage is entirely possible with the right preparation. By proving stable income, maintaining a good credit history, and offering a larger deposit, you can access competitive mortgage deals. A specialist broker can help you navigate the process and find the best options tailored to your needs, making buying property in the UK from abroad much easier.
Frequently Asked Questions
Can I get an expat mortgage if I'm self-employed?
Yes, self-employed expats can still get mortgages, though the process may involve more paperwork. Most lenders will ask for at least two to three years of verified accounts, tax returns, and possibly an accountant's certificate. It helps if your income is steady and well-documented, and a broker can be especially helpful in matching you with the right lender.
Do I need a UK bank account to get an expat mortgage?
Not all lenders require a UK bank account, but having one can make the process smoother. If you don't already have one, your mortgage broker or solicitor might be able to advise on setting one up. Some lenders may also accept payments from overseas accounts, but this could involve extra currency conversion fees.
Is it more expensive than a regular UK mortgage?
International mortgages can be slightly more expensive for UK expats living abroad, mainly because lenders view them as higher risk due to the foreign currency or different tax systems. You might see higher interest rates, arrangement fees, or stricter deposit requirements. But a strong credit history, a solid deposit, and shopping around or using a broker can help you find a deal that's more in line with standard UK rates.
Can I remortgage a UK property while living abroad?
Yes, remortgaging from overseas is absolutely possible and quite common for expats who want to release equity or secure a better rate. Lenders will still need to assess your current income, credit history, and the value of your UK property. If you're earning in a foreign currency, they may factor in exchange rate risks when working out the affordability. Again, using a broker who specialises in UK expat mortgages can help.
What if I plan to move back to the UK?
If you're planning to return to the UK in the near future, it's important to let your lender know. Depending on how soon you're moving back, they might recommend a residential mortgage, if the intended is residential property and not buy-to-let property. Some lenders allow you to switch your mortgage type later on, but it's always better to be upfront to avoid complications.
Should I use a broker for a residential expat mortgage?
Whatever the expat mortgage type, using a broker is often a smart move. Most high street lenders either don't offer expat products or have strict lending criteria. Brokers have access to specialist lenders and understand the how overseas income works, currency risks, and international paperwork. They can also help non-UK nationals (foreign nationals living in the UK) hop onto the property ladder while away from home.
About the author
Lawrence Howlett
Lawrence Howlett brings a results-driven mindset to his writing, shaped by over a decade of experience across finance, legal, and energy sectors. As the founder of Moneysavingadvisors, he’s built a reputation for turning complex financial concepts into clear, actionable insights for consumers. His writing stands out for its clarity, structure, and focus on delivering value.
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