Can an expat get a UK mortgage? Eligibility and deposits

An expat mortgage is a UK mortgage for a British national who lives and works outside the UK. It can fund a home for the borrower's return, a home for family, or a buy-to-let property. Lenders check overseas income, the country of residence and the currency of pay, as well as the property and UK credit history.

Expat mortgages are offered by a smaller group of lenders than standard UK mortgages, including specialist lenders, some high-street banks and some building societies. Mortgages for foreign nationals without British citizenship are a separate market with their own criteria.

Expats can usually get a UK mortgage if they have a steady overseas income, a UK credit history or bank account, an acceptable country of residence and a suitable deposit. Many lenders set a minimum income, and some accept only certain currencies or countries. Salaried borrowers with established employers usually find the widest choice.

Self-employed expats, those on short contracts and borrowers in countries that lenders see as higher risk find fewer options, and they may need a larger deposit. Some lenders also accept non-British nationals with UK residence history, but criteria vary.

The full picture of expat lending, including the types of lender and the checks they make, is in the UK expat mortgages section.

Deposits for expat mortgages are usually larger than for UK residents, and many lenders ask for at least a quarter of the property price, with some accepting less on strong cases. The deposit depends on the lender, the country of residence, the currency of income, the type of property and whether it is a home or a rental.

Stamp duty, legal fees and valuation costs come on top. Buyers who are not UK resident pay a non-resident surcharge on stamp duty in England and Northern Ireland, and buyers of a second property pay the additional property surcharge as well. Both can add a significant amount to the money needed.

Lenders reduce income paid in a foreign currency in their affordability calculation, to allow for exchange rate changes, and some do not accept certain currencies at all. Income paid in a widely traded currency, such as euros or United States dollars, is usually accepted by more lenders. Tax-free income in some countries is assessed in its own way.

Lenders also look at how the deposit is held and moved to the UK, and they check the source of funds as part of anti-money laundering rules. Keeping clear records of savings and transfers makes the application easier.

Estimating payments in both sterling and the income currency, with a buffer for exchange rate changes, gives a fuller picture. The expat mortgage calculator page explains how this works.

Expats can usually apply for a UK mortgage from abroad, through a broker or directly with lenders that accept expat borrowers. Documents typically include passports, proof of address abroad, payslips, an employment contract, bank statements and UK credit history. Some lenders accept documents certified overseas, and others ask for originals.

Valuations, legal work and signing can usually be done remotely, though some lenders need documents signed in front of a solicitor or notary. Giving a UK solicitor power of attorney can help when the borrower cannot be in the UK to sign.