Expat Mortgages: A Complete Guide to Buying Property in the UK

What is an expat mortgage?

An expat mortgage is specifically designed for UK citizens living abroad who wish to buy property back in the UK. Whether you’re an expatriate returning home or investing in a UK property from abroad, expat mortgages offer a path to home ownership for those living overseas.

If you're looking to buy property in the country where you currently reside or elsewhere internationally, you'll need an overseas mortgage, which follows different rules and requirements based on local regulations.

Eligibility and deposits

Expat mortgages work similarly to standard UK mortgages but come with stricter requirements, as lenders often view expats as higher-risk borrowers.

Deposit requirements
You may need to provide a larger deposit than for a standard UK mortgage. Most lenders require at least 25%, and you'll need to provide proof of where the funds originated due to international anti-money laundering laws.

Common sources of deposit include:

• UK savings accounts or international savings (depending on lender rules).

• Investments such as stocks, bonds, or commodities.

• Proceeds from property sales.

• Inheritance (if properly documented through probate).

• Gifts from family members, though some lenders may not accept gifted deposits.

Lending criteria
Key factors for expat mortgage eligibility include:

• Loan-to-value (LTV): Most lenders cap LTV ratios between 60% and 80%, with stricter caps often applied to expats.

• Country of residence: Some countries are deemed higher risk. Lenders usually prefer applicants from politically and economically stable regions.

• Currency: While some lenders accept foreign currencies, many prefer applications in sterling or adjust foreign currencies by a percentage due to exchange rate risks.

• Employment status: Lenders typically require full-time employment and sometimes demand proof of salary paid into a UK bank account. Self-employed applicants may face additional challenges unless their accountant is internationally recognised.

• Credit history: Maintaining a UK bank account and other financial ties (such as being on the electoral roll) is recommended to keep a strong credit profile for UK lenders.

How to get an expat mortgage

Securing an expat mortgage is often more complex than a standard UK mortgage due to additional risk factors. A specialist mortgage broker familiar with expat circumstances can simplify the process and improve your chances of success.

Your broker can:

• Assess your finances and advise on your borrowing potential.

• Help you choose the right mortgage product (e.g., buy-to-let, holiday home, residential).

• Identify suitable lenders and negotiate competitive rates.

• Assist with gathering and submitting documentation for your application.

• Advise on tax implications and future remortgaging options if you return to the UK.

How much will an expat mortgage broker cost?

Brokers typically charge between £500-£1,000 or 0.5%-1% of the loan amount, depending on the complexity of the case. Some brokers may take part-payment during the process and the remainder upon completion. Others work on a commission-only basis, receiving a procuration fee from the lender.

Expat mortgage calculator

Most lenders use income multiples, typically 4-4.5x your income, to determine how much you can borrow. However, some lenders may use lower multiples or different affordability calculations. To get an accurate estimate of your borrowing potential, consult a mortgage calculator or speak directly to a specialist broker.

Available lenders

Many major lenders, including Santander, Barclays, NatWest, and Halifax, do not offer expat mortgages, making it essential to work with a broker to access less-known lenders.

Expat buy-to-let (BTL) mortgages

If you’re purchasing a property in the UK to rent out, expat buy-to-let mortgages are an option. These mortgages allow expats to invest in UK property and generate rental income while living abroad. Requirements may differ, and some lenders specialise in expat BTL loans with specific terms.

Speak to a specialist

I (Matt Moffat - MD at Mortgage One) was an Expat for 22 years. Expat Mortgages are something I know inside out. I started Mortgage One as an Expat Mortgage specialist as my initial clients were my friends from Tokyo, Singapore, Sydney, Hong Kong, Mumbai and New York. There might be some more experienced Expat Mortgage brokers, but I doubt it! Call me for a chat 01202 155992 or email enquiry@mortgageonefinance.co.uk