The main criteria that expats need to be aware of when applying for a UK expat mortgage are as follows:

Loan-to-value (‘LTV’) ratio

The maximum LTV ratios are generally lower for expat mortgages, with most lenders setting a maximum cap of 75% LTV. This means that a borrower will need to put down a 25% deposit of the property. Some lenders will also offer reduced LTVs for mortgages above a certain amount.

Country of residence

Where you live can affect your expat mortgage application, with many lenders preferring applications from residents of countries offering political and financial stability.  Most lenders will have lists of ‘acceptable’ and ‘unacceptable’ countries they will accept expat mortgage applications from.

Currency

Whilst expat lenders will accept applications from expats earning a salary in a currency other than sterling, they will often restrict the currencies they will accept. Stable currencies such as euro and US Dollar are generally accepted by expat lenders. However even for these currencies, lenders will often apply a ‘haircut’ to reflect the risk of fluctuating exchange rates affecting the affordability of the mortgage repayments.  

Employment

Some lenders will only accept applications from expats who are in full time employment, although some will accept self-employed expat borrowers, provided their accounts are prepared and signed off by an internationally recognised accounting firm.

Introduction

Securing a UK mortgage as a British expat can be particularly challenging for high-earning professionals living in tax-free jurisdictions, where lenders may perceive income stability and creditworthiness differently. This case study explores the experience of Tom, a 34-year-old British lawyer based in Dubai, who was buying his first property in the UK.  His case highlights some of the unique barriers faced by expats when seeking finance for their UK property purchase.

The Scenario 

Tom had lived in Dubai for six years, working as a senior corporate lawyer for a major international law firm. He was earning a tax-free salary of AED 800,000 (£180,000), and he had accumulated over £250,000 in savings.  He was keen to purchase a property in London, both as an investment and a potential future home when he returned to the UK.

Tom assumed his high net disposable income, his long-term employment track record with a leading law firm, and substantial savings would simplify the mortgage process.  

However, he faced immediate hurdles: no active UK bank account, no recent UK credit activity, and income paid in UAE Dirhams (AED). 

The Challenge

Tom’s application was initially rejected by multiple mainstream UK lenders.  This is not uncommon.  Key issues that Tom faced – as many expats seeking to purchase property in the UK – included: 

No UK Credit Footprint:

Tom’s lack of recent credit activity in the UK made lenders wary, as they could not assess his repayment reliability through traditional credit scoring systems.

Currency and Tax-Free Income:

Lenders questioned the stability of his AED income and were unfamiliar with Dubai’s tax-free salary structures.

First-Time Buyer Complexities:

Despite his relatively unique financial situation, and high net disposable income, lenders viewed him as a higher risk due to his expat status and lack of UK property ownership history.

How We Helped

It was immediately apparent that the traditional lenders that Tom had approached had little experience of dealing with the unique characteristics of his situation.

By using our network of expat lenders, we were able to reach out to a lender with specific expertise dealing with British expats in Dubai and were able to secure a high LTV at a very competitive rate for the client.

If you are an expat seeking to purchase property in the UK, please contact us to see how we can help.

Bank account

It is often a requirement that you have an existing UK bank account when you apply for an expat mortgage. It is highly recommended to keep your existing UK bank account when moving overseas, or open one in anticipation of applying for a mortgage.

Credit history

Most lenders will still require a credit history for borrowers, notwithstanding that they are not resident in the UK. For this reason, it is advisable to keep some ties to the UK, such as being on the electoral roll, keeping a mobile phone contract, credit card and bank account in the UK. Specialist expat lenders will take into account that an expat will have a reduced footprint compared to a UK resident borrower when assessing their application.

Every lender has their own specific lending criteria when it comes to UK expat mortgage applications. This is why it is crucial to work with a specialist expat mortgage broker, who will be able to advise you on the most appropriate lender and product for your particular circumstances.