Getting a mortgage in the UK as an expat can be a smart investment move but it’s rarely straightforward. To help demystify the process, I spoke with Sam Lee, Asia Pacific Director at Capricorn Financial, a leading mortgage brokerage catering to the diverse needs of international buyers.
Sam’s team specialises in assisting expats and non-residents across Singapore, Shanghai, and Hong Kong to secure strong outcomes with their mortgages.
Note: This article is adapted from a conversation originally featured on the APW Property Podcast.
Can expats get a mortgage in the UK?
Yes, expats can get a UK mortgage, but there will be a few more hurdles to overcome. Most mainstream lenders prefer UK-based borrowers and can decline applications from overseas due to perceived risks.
For expats, the approval rate can be low simply because these banks view them as riskier or outside their standard lending model. That’s why specialist lenders and brokers are key.
As Sam explains, “it tends to be the more specialist lenders that accept expats for mortgages. There are plenty out there who will happily lend to expats.”
What’s the difference between a lender and a broker?
Lenders are the financial institutions that provide the mortgage – setting the terms, approving your application, and releasing the funds. This includes big names like Barclays, HSBC, or Halifax, as well as specialist providers like Aldermore or Precise Mortgages.
Brokers are advisers who work with many different lenders to help you find the best match for your circumstances. They don’t lend money themselves, but they guide you through the application, help you prepare the right documents, and increase your chances of getting approved.
What types of mortgages are available to expats?
Expats have access to a similar range of mortgage products as domestic buyers, though with some variation:
- Buy-to-Let Mortgages – Popular among expats investing in rental property.
- Residential Mortgages – For those planning to return and live in the UK home.
- Interest-Only Mortgages – Lower monthly payments, but the capital must be repaid later.
- Fixed or Tracker Rate Mortgages – Fixed offers certainty, while tracker rates follow the base rate.
Specialist brokers, like Capricorn Financial, can help you choose the right type based on your income structure, goals, and long-term plans. With legislation regularly evolving in the UK property market, an experienced specialist can help you navigate any mortgage changes.
What documents do I need for a mortgage in the UK?
Due to international anti-money laundering regulations, lenders require a clear audit trail for your income and deposit sources. Be prepared with:
- Proof of income (recent payslips or employment contracts)
- Employer reference letter
- Tax returns (particularly if self-employed)
- Company accounts (if you run a business)
- Standard identification (passport, national ID)
- Proof of address (utility bill or bank statement)
- Source of deposit (usually 6 months of bank statements)
If your deposit comes from a non-salary source – like inheritance, a gift, or property sale – you’ll need additional evidence to support the origin of funds.
At Capricorn Financial, Sam’s team often begins with a pre-approval process using minimal documents to assess affordability and compatibility with lender criteria. Once this is confirmed, a full mortgage application is submitted. From there:
- Mortgage offer: Usually takes 6–8 weeks
- Validity: Typically valid for 6 months
- Legal completion: Another 4 weeks for solicitor checks
- Total timeline: End-to-end, around 3–6 months
What happens if my mortgage application is delayed?
Delays are common, especially with off-plan properties (ones that are bought before they’re built or completed). Most lenders allow an extension of 3–6 months, but beyond that, you may need to re-apply. If interest rates have shifted significantly, as we have seen in the past few years they have frequently in the UK, you might need to select a new mortgage product.
The key to avoiding stress? Stay in regular contact with your mortgage broker. They’ll help you navigate rate changes, extensions, and paperwork so your transaction stays on track.
What the biggest mortgage mistake to avoid?
Starting too late. Many expats underestimate the time required to secure a mortgage, sometimes waiting until the last minute to begin. With mortgages, Murphy’s Law can often apply; what can go wrong, will. Whether it’s delays with valuations or lenders reaching exposure limits, early preparation is critical.
Aim to begin your application at least four months before completion. This gives you flexibility to handle surprises and secure the most competitive deal – especially in large developments where lenders may only finance 5–10% of total units.
Exposure limits are the maximum number of units in a single development that a lender is willing to finance. This is usually capped at a small percentage (often 5–10%). Once that limit is hit, the lender won’t offer any more mortgages for that property, regardless of how strong your application is.
This means the best deals can get snapped up early. If you apply too late, you may have fewer lenders to choose from and end up with less competitive terms.
How can you get the best mortgage rates?
Lenders favour low-risk applicants. That usually means:
- High, consistent income (often £50K+ for expats)
- Larger deposits (ideally 40% of the property’s value)
- Strong credit history and documentation
Some lenders will go up to 80% LTV (Loan-to-Value), but this comes with higher rates. Sam points out that ultimately, the best deal isn’t always the lowest rate:
“Lenders offering the best rates might have a longer turnaround time and might require a lot more documentation. It’s not always the case that the lowest rate is the best option for someone.”
When it comes to getting the best mortgage rate, focus on what fits your goals – whether that’s flexibility, cash-flow positivity, or ease of process. The ‘cheapest’ product might not be the best one for you.
Can expats invest in property through a limited company?
Yes, and many are doing just that. Buying through a UK limited company offers tax advantages, particularly for landlords. However, it narrows your lender options. Traditional high street banks rarely offer mortgages to companies, so you’ll likely use a specialist lender and pay slightly higher rates.
Still, for expats, the tax savings can outweigh the costs. When buying through a company, you can offset mortgage interest from your rental income. So, if you earn £10,000 and pay £6,000 in mortgage interest, you’re only taxed on the remaining £4,000, minus other expenses like management fees.
This approach is increasingly popular due to changes in how mortgage interest is treated for individual landlords, especially in higher tax brackets.
How do I find the right mortgage for me?
As we’ve discussed, getting a UK mortgage as an expat can be more complex, so starting early and exploring your options with a knowledgeable broker can make the process much smoother. They will help you to get prepared with the right documents and provide a clear understanding of your options.
Finding the right lender, timeline, and strategy will depend on your personal circumstances:
- Where you’re based
- How you earn
- Your risk tolerance
- Your investment or relocation goals
Whether you’re purchasing for investment, personal use, or through a company structure, aligning your mortgage strategy with your broader financial objectives is essential.
With the right guidance, expats can access great mortgage products that help them build long-term wealth through UK property.
Want to hear more from Sam and Callum? Listen to our podcast on getting a mortgage as an expat at: apw-property.com/apw-podcast/
With 14 years in UK property, Callum Williamson specialises in value-add conversions and portfolio growth. Starting with city flats, he expanded into HMOs and international assets. A passionate investor and co-author of The Expat Property Playbook, Callum helps expatriates build long-term wealth through smart, sustainable property strategies.