More Britons are building their lives abroad, whether for work, family, study or a lifestyle change. For many, a UK home remains an essential part of the plan.
The latest Office of National Statistics (ONS) Data shows that an estimated 246,000 British citizens left the UK in the year ending December 2025.
This was slightly lower than the 257,000 who left the previous year, but there were still a large number of people moving abroad in the long term.
The ONS also says that at least 4.8 million people born in Britain will be living abroad in 2024, based on UN data.
This raises a very practical question for many homeowners: What happens to the mortgage?
For some, UK properties are rented out while they live abroad. For others, it becomes a source of equity to help secure a new home abroad. But arranging financing as an expat isn’t always as easy as proving you earn enough.
Why expat mortgages can be more complicated
A UK resident borrower is usually judged based on income, credit history, deposits, property value and monthly costs. These points are still important for expats, but lenders often go further.
They may ask where the income is earned, what currency it is paid in, where the applicant is a tax resident and where they currently reside. They may also look at how long the borrower has spent abroad and whether there is any plan to return to the UK.
This means that two borrowers could receive the same salary but face completely different outcomes. One may have a good choice of lenders, and the other may find that many lenders will not consider the issue at all.
The reason is not always income, as it can simply return to the country in question.
Some lenders are comfortable with applicants based in places like Dubai, Singapore, Hong Kong, Australia or parts of Europe. Others take a more cautious view, depending on location, currency, hiring system and local rules.
That’s why the first question shouldn’t be: “How much can I borrow?” The question should be, “Which lenders are likely to accept my situation?”
Agreeing to permit is not always a long-term answer
One issue we often see is with permission approval. The homeowner moves abroad and asks his main bank for approval to rent out his home in the UK.
The bank agrees to this, allowing the property to be rented out while the borrower maintains the existing residential mortgage.
This can work in the short term, but the problem often arises when the current fixed rate expires. Some major banks are comfortable giving approval to forbearance for a period, but once the deal has ended, they may not allow the borrower to move to a new product because they are no longer resident in the UK.
This could leave the borrower stranded and they may be moved to a higher standard variable rate, or may need to refinance with another lender willing to take on expatriate buy-to-let borrowers.
This is why it is very important to verify the final status with your current lender before relying on forbearance approval.
Real example: Moving from Essex to Dubai
We are currently working with a client who moved to Dubai with his family about nine months ago after being offered a role at one of the Big Four accounting firms.
He still owns his former home in Essex, the property is worth just under £1 million, and is currently mortgaged to a major bank. When he moved abroad, the bank agreed to let him do so.
His current mortgage deal expires at the end of October. He now wants to move the property to a buy-to-let mortgage and free up around £300,000 after paying off the existing residential mortgage.
The plan is to use this money to buy a family home in the Middle East. On paper, this sounds good, as the property is of high value and the client has a good job. There’s also an obvious reason for raising money, but that doesn’t mean every lender will say yes.
The lender will examine the UK property, the potential rent, the amount of capital, the client’s income, the fact that they are paid abroad, the currency, their country of residence and the purpose of the additional borrowing.
In this scenario, the standard Main Street route may not be possible. This is exactly where expatriate financing should be placed with lenders who understand the full complexity of the issue.
Are you looking for mortgage options for expatriates? What do you do next…
Expatriate financing is not just a regular mortgage with a different address, as where you live and where you earn can change the lenders available to you. So do currency, type of job, tax status and time spent outside the UK.
For borrowers, this means that the right advice up front can save a significant amount of time and stress later on.
If your UK mortgage deal is coming to an end, or you want to release equity from a UK property while living abroad, don’t assume that your current bank will be able to help just because they have agreed to let it happen.
Check the situation early and understand which lenders are likely to accept your country, income and plans. Then build the app around those facts.
For many expats, the answer is still yes. But the path to this must be chosen carefully.
Hiten Ganatra, Managing Director of… Finance insight
