An expat mortgage is a home loan designed for UK citizens living and working abroad who want to buy or remortgage a property in the United Kingdom, whether as a main residence, a second home or a buy to let investment.
It works like any other UK mortgage: a bank, building society or specialist lender lends you the money in exchange for interest paid over an agreed term. What changes is who will lend, what they ask of you, and how much of the purchase you need to fund yourself.
There are two main differences in the terms of the loan.
The conditions are tighter. Lenders look more closely at your salary, the country you live in, whether you hold a UK bank account, whether you can prove your address in your country of residence, where your deposit is coming from and your UK credit history. Expats are treated as a slightly higher risk, so the criteria are stricter.
The deposit is larger. A bigger deposit is normally required than for a UK-based mortgage. Lenders also look closely at loan to value, which is the amount you are borrowing against the value of the property, and specialist expat lenders generally work within tighter bands than a high street lender would apply to a UK resident.
Criteria vary between lenders, but you will typically need to meet the following.
Because eligibility differs from lender to lender, the same application can be declined by one and accepted by another. That is the main argument for going through a broker with access to the specialist market rather than approaching a single bank.
When you apply, expect to supply documents proving your identity, your income and your creditworthiness.
Requirements vary between lenders, so check the list with your broker before you start gathering paperwork.
Lenders will want proof of the source of your deposit. This is to meet strict money laundering rules, and it is not something that can be skipped.
If your deposit is coming from savings, an inheritance, a gift or the sale of another property, there is no issue. There simply needs to be a paper trail showing where it came from.
Overseas income is looked at carefully too. Bonuses, allowances and currency fluctuations can all affect how a UK lender assesses affordability, and how your income is structured can change which lenders will consider you.
Interest rates on expat mortgages may be slightly higher than on standard UK mortgages, because lenders treat expat borrowers as higher risk. Rates vary significantly between lenders, so it is worth comparing across the market rather than accepting the first offer.
Alongside the rate, you may also pay arrangement fees, valuation fees and legal fees. These add up, so build them into your budget from the start.
The same rules apply, and there is nothing to stop you remortgaging a UK property while you live abroad. You can also raise additional funds for debt consolidation, for a deposit on a property in the country you now live in, or to buy further investment properties.
If your current deal is a fixed rate, there will be a point when it ends and your payment moves onto a variable rate. In most cases that means the monthly payment goes up. If your deal is due to end, a review well before the end date gives you the most options.
Expat remortgages · Expat buy to let mortgages · Expat residential mortgages
Some high street banks and building societies lend to expats, but much of this market sits with specialist lenders who focus on it. Many of their products are not available directly on the high street.
We work with more than 20 specialist UK expat lenders, which gives access to products not sold direct, lenders experienced with overseas income and residency, and options matched to your country, income type and plans. Our approach is whole of market, so the aim is the right lender rather than the easiest one.
1. The introduction. We get to know you, your needs and your requirements, talk you through the application process, and explain what documentation you will need to supply, what fees you may have to pay and the size of deposit you will need.
2. Product match. We review your documents and, once we have everything, source all available mortgage options from the whole of the market to find the right lender and product for you.
3. Lender agreement. With your agreement we seek an Agreement in Principle from the lender.
4. The process. We complete the lender paperwork and guide you through the application to obtain your mortgage offer.
5. Completion. Once the offer is issued we keep going, including chasing solicitors, through to a successful completion.
Expat Mortgage Expert is part of The Mortgage Expert Group, with nearly 150 years of financial services experience across the organisation. Ryan Radford is based in Dubai, so advice happens in your time zone and, if you are in the UAE, face to face.
Ryan Radford explains how we work with British expats, and what makes arranging a UK mortgage from overseas different.
Whether you are buying, remortgaging or investing, tell us where you are and what you are trying to do, and we will tell you what is realistic.
Call or WhatsApp +971 58 513 9728, or start an enquiry online.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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