Overseas Mortgages
UK mortgages for non-residents, expats, and foreign nationals
What are Overseas Mortgages?
Overseas mortgages (also called non-resident mortgages or expat mortgages) are UK mortgages designed for people who live abroad but want to buy property in the UK. This includes UK citizens working overseas, expats who've relocated permanently, foreign nationals investing in UK property, or anyone earning income outside the UK who wants to own UK real estate. Specialist lenders assess foreign income, accept overseas documentation, and accommodate the unique circumstances of non-resident borrowers.
The requirements are stricter than standard UK resident mortgages—you'll typically need a 25-40% deposit (compared to 5-10% for residents), pay higher interest rates (often 0.5-2% more), and provide extensive documentation including translated and notarized overseas employment/income proof. Lenders apply 'haircuts' (reductions) of 15-25% to foreign income to account for currency risk. However, if you have strong UK ties (citizenship, previous UK addresses, UK bank account), more lenders become available with better terms.
Overseas mortgages commonly fund buy-to-let investments (generating UK rental income), purchase of holiday homes, retirement properties, or accommodation for family members studying/working in the UK. Tax considerations are significant: non-resident landlords pay UK income tax on rental profits with no personal allowance, face capital gains tax on property sales, and UK property forms part of their estate for inheritance tax. Additionally, your home country may tax the same income and gains, though double taxation treaties often provide relief. Professional cross-border tax advice is essential for overseas property ownership.
Overseas Mortgages are arranged by introduction only.
Key Benefits of Overseas Mortgages
Buy UK property even if you live abroad—specialist lenders cater to overseas residents
Access the UK property market for investment, retirement planning, or family accommodation
Some lenders accept foreign income and offer currency account options for repayments
Build a UK property portfolio from abroad for rental income or capital growth
Expert Tips & Insights
Most lenders require you to have some UK connection: UK citizenship, previous UK address, UK bank account, or right to reside. Some accept applications from complete non-residents but choices are limited. If you've never lived in the UK and have no UK ties, expect fewer lender options and higher rates (typically 5-7% vs 4-5% for those with UK history). EU/EEA citizens often find more options than other nationalities due to established lending relationships.
Expect to provide 25-40% deposit minimum—significantly more than UK resident borrowers (who can access 5-10% deposit mortgages). The less UK connection you have, the larger deposit required. Typical: 25-30% for UK citizens living abroad, 30-35% for non-UK citizens with UK history, 35-40% for complete non-residents. Some specialist lenders go to 75% LTV (25% deposit) but charge premium rates. Budget for currency exchange costs when transferring deposit funds.
Overseas applicants need extensive documentation: passport, proof of overseas address, proof of UK address history (if applicable), overseas employment contracts/payslips (translated into English and notarized), overseas bank statements (last 3-6 months), proof of deposit source, and UK bank account details. Self-employed applicants need 2-3 years accounts from their home country, professionally translated. Processing takes 6-12 weeks vs 4-8 weeks for UK residents due to verification requirements.
Most lenders accept foreign income but apply 'haircuts' (reductions) to account for currency risk—typically 15-25% reduction from stated income. Example: €50,000 salary might be assessed as £35,000-37,500 equivalent. Some lenders only accept GBP income or income from specific countries (USA, Canada, Australia, EU commonly accepted). If paid in a volatile currency, larger haircuts apply. Having partial UK income (rental, pension, or savings interest) strengthens applications significantly.
Most lenders don't require you to view properties in person, but it's highly recommended especially for investment purchases. Arrange solicitors who can handle overseas communications via email/video. If buying for rental investment, factor in UK letting agent fees (10-15% of rent), property management costs, and maintenance. Many overseas investors use property management companies to handle everything remotely—expect to pay 12-18% of rental income for full management including tenant finding.
Overseas landlords pay UK income tax on rental profits with no personal allowance offset, must register with HMRC's Non-Resident Landlord Scheme, pay capital gains tax on sale (with no main residence relief), and may face tax in their home country too. Letting agents must withhold 20% tax from rent unless you have HMRC approval. UK property also forms part of your estate for inheritance tax (40% over £325k). Consult a cross-border tax specialist—costs £500-1,500 but saves thousands in overpaid tax.
Frequently Asked Questions
Buying UK Property from Abroad?
Our overseas mortgage specialists understand the unique challenges of international property purchase. We'll guide you through documentation, income assessment, and tax considerations to secure your UK property.