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Living and working in Saudi Arabia does not stop a British expat from obtaining a mortgage on a UK property. There is an established market for applicants in the Kingdom buying a home, investing in buy-to-let property or remortgaging a property they already own. Whilst high street lenders in the UK will not generally lend to non-residents, there are several specialist lenders and private banks who will accept applications from UK expats in Saudi Arabia.
The challenge is to recognise that an expat in Saudi presents as a very different borrower profile to a UK resident. A lender reviewing a mortgage applicant in Saudi will be assessing a very different financial profile to a UK resident: the salary is paid in riyals, and the package may contain substantial housing, transport, schooling, site or offshore allowances. The employment contract is fixed-term under Saudi labour law, even after many years with the same employer, and the applicant holds an Iqama rather than a UK address history.
Employment income in Saudi Arabia is also generally free of individual income tax. That leaves many applicants with far higher disposable income than a UK salary of the same gross amount, although UK lenders do not all reflect the advantage in the same way. A strong salary and a large deposit do not always compensate for approaching a lender that ignores the allowance element of the salary package or applies an unsuitable currency calculation.
This guide will cover each of those points in turn, the choice between residential, buy-to-let and remortgage routes, and the UK mortgage application process from Saudi. For the position across all countries, see our guide to UK expat mortgages.
Saudi Arabia sits on the accepted-country list of most lenders active in the expat market, and Dolphin Finance have worked with many expats resident in Saudi Arabia.
There is no single set of "expat mortgage criteria for Saudi Arabia". Each lender decides which overseas jurisdictions, currencies, employment arrangements and mortgage purposes it will accept, and some add requirements on nationality, minimum income, deposit, UK credit history or length of time overseas.
Lenders will want evidence that the applicant is legally resident and entitled to work in the Kingdom. For most employed expats that means the Iqama, Saudi Arabia's residence permit for foreign workers, alongside a passport, employment contract and proof of a residential address in the Kingdom. An Iqama approaching expiry is not an obstacle in itself, because renewal is a normal part of employment in Saudi Arabia, but the lender may want evidence supporting continued employment.
The British expat community in Saudi has grown well beyond its traditional oil and gas base. Lenders now see applications from construction and major-project engineers, healthcare professionals, teachers, consultants, bankers and technology staff in Riyadh, Jeddah and the Eastern Province, and experienced expat lenders have adapted their underwriting to the way those roles are contracted and paid.
Most employed applicants receive their income in Saudi riyals rather than sterling. The riyal has been fixed at 3.75 to the US dollar since June 1986, one of the longest-standing currency pegs in the world, and the Saudi Central Bank maintains that rate. Lenders treat riyal income as highly stable. Your real exposure is the pound against the dollar.
That stability does not mean a lender converts a riyal salary into sterling at today's rate and uses the whole figure. Lenders apply their own foreign-income policies. Most apply a percentage reduction, often called a currency haircut, after conversion to sterling, which commonly leaves 75% to 90% of income counted. Others use an internal exchange rate or build currency risk into the affordability calculation in another way. Our guide to how UK mortgage lenders assess Saudi riyal income explains the methods in detail.
One of the biggest differences between employment in Saudi Arabia and the UK is how remuneration is structured. A package in the Kingdom may include basic salary, housing allowance, transport allowance, schooling or education allowance, site, location or hardship allowance, shift or offshore allowance, overtime, performance bonus, commission, an annual flight entitlement and medical cover. Saudi labour rules distinguish the basic wage from wider remuneration, and contracts are expected to record the wage and the allowances separately.
That distinction matters when applying for a UK mortgage. A client might reasonably describe their package as SAR 60,000 a month, but the contract may show SAR 38,000 basic salary with the remainder made up of housing and other allowances. One lender might use most contractual cash allowances. Another may use basic salary plus only certain regular allowances, and a third may use a percentage of variable income or disregard some elements altogether.
Packages in the Kingdom are among the most allowance-heavy anywhere, so the lender's allowance policy can play a deciding factor. This is of particular relevance for residential mortgage applications, where the affordability assessment is driven by an applicant's regular monthly expenditure (as opposed to a BTL mortgage, where affordability is driven primarily by rental income).
Under Saudi labour law, employment contracts for non-Saudi workers must be written and fixed-term. Where no duration is stated, the contract is treated as lasting one year from commencement and renews for a similar period while employment continues. A British engineer who has worked for the same employer in the Kingdom for ten years is therefore still, on paper, on a fixed-term contract.
That does not mean a lender should treat them like a newly appointed UK employee on a short temporary contract, and specialist expat lenders dealing regularly with applicants from Saudi Arabia do not. The underwriting context matters. A lender may want to establish how long the applicant has lived and worked in the Kingdom, length of service with the current employer, remaining contract term, previous renewals, whether renewal is routine, profession and seniority, and the employer's profile.
For an experienced expat who has completed several consecutive contracts with a major employer, the expiry date needs to be explained in context rather than simply entered into an application as "six months remaining". Employment documentation in the private sector is now largely formalised through the Qiwa contract platform and the Wage Protection System, which give employee and employer an electronic record of contractual terms and salary payments that lenders find easy to rely on.
The same principle applies to the Iqama. Present the expiry date alongside the renewal history and the employer's confirmation, not on its own. A recent change of employer within the same industry is not usually a problem either, although the lender may want the new contract, details of any probation period and the previous role.
Applicants from the Kingdom are generally concentrated in a handful of sectors. The common factor across all of them is the need to show which elements of pay are contractual, regular and evidenced.
Oil, gas and petrochemicals. The Eastern Province has attracted British engineers, project managers, geoscientists and senior managers for decades. Packages typically combine a substantial base salary with site, transport, accommodation or offshore-related payments, so the main task is separating the contractual elements from the variable ones.
Engineering, construction and major projects. The Kingdom's infrastructure and giga-project programmes have created significant demand for engineers, project managers, quantity surveyors, architects and consultants. Some work directly for organisations in Saudi Arabia, others for international contractors, consultancies or joint ventures. Project-based employment is common, so lenders look at continuity, track record and renewal history rather than the end date of the current project. Day-rate and agency contractors are covered in our guide to UK mortgages for contractors working in Saudi Arabia.
Healthcare. Doctors, consultants, surgeons, dentists and nurses working for the large hospital groups form another established group. Packages often include accommodation, flights, health cover and education support alongside salary, and each component needs documenting separately.
Financial services, technology and professional services. Riyadh's expansion as a financial and commercial centre has drawn bankers, investment professionals, technology staff, consultants and lawyers. Income may include substantial bonuses or other variable compensation, and a lender may want a track record before using those amounts.
Education. British and international schools, universities and training institutions employ teachers, heads, academics and administrators. Housing allowances and school-fee benefits are especially relevant here and should be separated from basic salary when assessing borrowing.
For residential purchases, some expat lenders will go up to 90% loan-to-value, so a deposit can start from 10% of the purchase price. For buy-to-let, lending is typically available up to 80% LTV, meaning a minimum 20% deposit.
For residential borrowing, the amount available will mainly come down to how the lender assesses your income and overall affordability. For buy-to-let, the starting point is usually the rent the property is expected to achieve and whether it passes the lender's rental stress test.
One advantage many Saudi-based applicants have is the ability to build up savings while working in the Kingdom, particularly where accommodation, healthcare, schooling or other major costs are covered by the employer. Those savings can normally be used towards a UK property purchase, but the source of the money will need to be evidenced properly.
This will usually mean providing Saudi bank statements showing salary credits and the build-up of savings, together with investment statements where relevant and a clear paper trail for any transfer into sterling.
This is one area we recommend clients to pay particular attention to as early as possible during the mortgage application process. Cases involving British expats in Saudi are rarely complicated because the money itself is unusual; delays tend to arise where there are several accounts, historic transfers, offshore savings or large movements of money that have not been documented clearly.
If you are transferring a sizeable deposit from Saudi Arabia to the UK, keep the trail clean and easy to follow. Transfers between Saudi accounts, offshore accounts and UK accounts may need explaining to the lender, solicitor or both.
Gifted deposits from family are also accepted by many lenders, subject to the usual checks and confirmation that the money is a genuine gift rather than a loan.
Residential. An expat in the Kingdom may want a UK residential mortgage because they are returning home, buying ahead of a future move or purchasing jointly with a spouse already in the UK. Residential borrowing is assessed on personal affordability: accepted riyal income after the currency adjustment, regular commitments, dependants, school fees, housing costs overseas, existing mortgages and the expected position after any return. The proposed occupation of the property must be clear. If you intend to stay in Saudi Arabia for another three years and intend to rent out the property, then you will need an expat buy-to-let mortgage; if you are returning shortly to live in it, residential lending may be available provided the future income position is acceptable to the lender.
Buy-to-let. Buy-to-let is one of the most common reasons expats in Saudi Arabia need a UK mortgage, whether investing surplus earnings or expanding a portfolio before an eventual return to the UK. Personal salary is not the main driver. The lender's valuer assesses expected market rent, which is tested against a stressed interest calculation, typically requiring rent to cover the payment by 125% to 145%. A high salary in the Kingdom does not let an applicant ignore a rental shortfall, although some lenders offer top slicing, which allows surplus personal income to make up any shortfall in rental income.
Purchases can be made personally or through a UK limited company, and some lenders accept company applications from directors resident in Saudi Arabia; a company structure is not automatically more tax-efficient, so take advice before choosing. Our expat buy-to-let guide covers stress tests, top slicing and company structures in full.
Remortgage. Moving to Saudi Arabia changes the remortgage market available to an existing UK homeowner. When a fixed rate taken out while living in Britain comes to an end, the current lender will likely not offer a remortgage to a non-UK resident, in which case a specialist expat lender will need to be considered. An expat remortgage can replace a product, raise capital, restructure borrowing or release equity towards the next purchase.
For further details on your remortgage options as an expat, see our expat remortgage guide.
Letting your former UK home. The most common scenario of all is a homeowner relocating to Saudi Arabia for work and renting out their UK home. In this scenario, the homeowner will normally need either consent to let from the existing lender or a remortgage onto a buy-to-let product.
Consent to let suits a posting expected to be temporary and may be time-limited, conditional or subject to a rate change or fee. A buy-to-let remortgage suits a move that has become long-term, a property now regarded as an investment, consent that is ending, or a wish to raise capital. For the buy-to-let route in detail, see our guide to remortgaging a UK buy-to-let property while living in Saudi Arabia.
Many British professionals work in Saudi Arabia while a spouse and children remain in the UK. A UK-resident spouse on the application can widen the lender list considerably, because part of the household is assessed on ordinary domestic terms rather than as non-resident. Some lenders may treat this as a UK resident application, notwithstanding that foreign currency income may constitute the basis of the affordability assessment.
If your family has remained in the UK, your credit file may also be in better shape than most long-term expats, although this is not a key driver given that specialist expat lenders are accustomed to working with expat clients with limited recent UK credit history.
A UK mortgage application can normally be completed entirely from Saudi Arabia, without the need to travel back to the UK. Calls, document checks and lender correspondence can all be handled remotely. As a general guide, allow around two to six weeks from full application to mortgage offer, although straightforward cases can be quicker.
Residential, buy-to-let, remortgage, capital raising or a former home with consent to let. The purpose sets which lenders and which calculation apply.
Iqama status, employer, contract term and renewal history, riyal income and the structure of allowances. This is where the lender shortlist is built.
For residential cases, affordability is calculated on the income the lender is prepared to recognise after the currency adjustment. For buy-to-let, the rental calculation is tested first, with top slicing considered where it helps.
Payslips, contract, Qiwa record where available, bank statements from Saudi Arabia and deposit evidence are reviewed before anything is submitted, so the package reads consistently across payslip, contract and bank credit.
A conditional confirmation of how much the lender will lend, giving you the confidence to make an offer while still overseas. It remains subject to full underwriting, valuation and legal work.
The lender assesses the complete application and instructs a valuation of the UK property. For buy-to-let, the valuer also assesses expected market rent.
Further questions are common where the package has several elements or the contract has a short remaining term. Providing the context at the outset, rather than waiting to be asked, is what keeps this stage short.
Once underwriting and valuation are satisfactory the lender issues its offer and conveyancing proceeds. Where documents need certifying, local notaries, the British Embassy in Riyadh and the Consulate in Jeddah can all help; the UK government's living in Saudi Arabia guide lists local sources. Allow lead time for appointments, and confirm exactly what needs certifying before paying for any of it.
British expats resident in Saudi Arabia can obtain UK mortgages for residential purchase, buy-to-let and remortgaging, subject to the usual underwriting, affordability and property requirements. The high street will not generally lend to non-residents, so the deals sit with specialist lenders and private banks reached through a broker.
First-time buyers do get expat mortgages, though fewer lenders offer them than for applicants who already own property.
Lenders commonly request the Iqama as evidence of your right to live and work in Saudi Arabia, alongside your passport, employment contract and proof of address. An approaching expiry is rarely a problem where renewal is expected, but supporting evidence from the employer may be requested. Present the expiry date alongside the renewal history rather than on its own.
A fixed-term contract on its own does not. All non-Saudi employment contracts are fixed-term under Saudi labour law, so lenders dealing regularly with applicants from the Kingdom do not read the words "fixed term" in isolation. Length of service, previous renewals, occupation, employer and the remaining term are what they weigh.
The peg at 3.75 to the dollar, in place since 1986, means lenders treat riyal income as highly stable, and it removes the volatility concern that applies to floating currencies. It does not remove the foreign-currency adjustment altogether: the mortgage is in sterling and lenders still apply a reduction to converted riyal income, commonly leaving 75% to 90% counted.
A currency haircut is the reduction a lender applies to foreign income for affordability purposes after converting it to sterling, to allow for exchange-rate risk. The percentage and method differ between lenders, so two lenders can calculate different usable incomes from the same riyal salary. For riyal income the reduction is at the gentler end because of the dollar peg, but it still applies. Our guide to how UK mortgage lenders assess Saudi riyal income explains the methods in detail.
Expat buy-to-let mortgages are available to residents of Saudi Arabia from a range of specialist lenders. Borrowing is set mainly by the property's expected rent, which typically has to cover the mortgage payment by 125% to 145% under stress tests, alongside a minimum personal income that packages in the Kingdom usually clear comfortably. Sterling rent services a sterling mortgage while your salary stays in riyals.
Some lenders offer top slicing, which lets surplus personal income cover a rental shortfall. The lender must first accept your riyal income and will assess your personal expenditure and commitments, so the allowance and currency questions on this page apply in full. Not every expat buy-to-let lender offers top slicing, given the additional challenge involved in assessing expenditure in a foreign currency.
Consent is needed in almost every case. It is a condition of a residential mortgage that you live in the property and do not rent it out without the specific consent of the lender. Most lenders will agree to a consent to let if you are relocating abroad for work, usually subject to a fee and/or an increase in your mortgage rate.
However, after your current deal expires, most high street lenders will not extend your consent to let if you are still living overseas, and so you will need to remortgage the property on to an expat buy-to-let mortgage product.
Everything from the free initial consultation to completion can be handled remotely. Documents are signed locally and certified or couriered as needed, with your UK solicitor completing at the other end. Where a lender or conveyancer requires certified copies, local notaries, the British Embassy in Riyadh and the Consulate in Jeddah can all help.
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