If you live abroad and want to buy property in the UK, the process has become a little more challenging recently. This is due to the new Anti-Money Laundering (AML) regulations introduced earlier in 2025. Lenders are now required to carry out AML checks on all mortgage applications in response to a rise in suspicious financial activity in the past few years.
When you’re applying for a UK expat mortgage, lenders may ask for detailed information about your finances. They will need to confirm the source of your funds to ensure they originate from legitimate means. The aim isn’t to prevent you from purchasing a home, but to protect the UK property market from the risks associated with illicit money.
Why AML Checks Matter for Expat Mortgages?
Unfortunately, some people who come to the UK to buy property get their funds through crime. The rules of AML are designed to ensure that individuals who make money from criminal activities can’t buy property in the UK. By law, all banks and UK expat mortgage lenders must make sure that the money used for a mortgage is legitimate.
These rules can be tough for expats because they mean filling out more paperwork than a buyer in the UK would have to deal with.
If you’re sending money from a country that the UK sees as high risk, lenders may carry out further checks before they approve your mortgage.
What You Must Prove to Get an Expat Mortgage?
When you apply for an expat mortgage, lenders will want to see proof of various things, including:
1. Proof of Address:
Lenders need to confirm your identity and current residence. You may be asked to provide your passport along with documents that verify your address, such as a utility bill or tenancy agreement.
If you’ve been living abroad for an extended period, you may also be asked to provide evidence that you had the legal right to live there.
2. Proof of Income
Once they’ve confirmed your address, mortgage lenders will also require proof of income. This helps them assess whether your earnings are stable, reliable and from a legal source.
You may be asked to provide recent payslips, an employment contract and bank statements that show your salary deposits. If you’re self-employed or run a small business, you’ll usually need to provide your past few years of tax returns as evidence of income.
If you’re an applicant who’s paid in a foreign currency, lenders will convert the money into pounds sterling to determine how much is available for your mortgage application.
3. Your Bank Deposit
Your deposit is the third key area lenders look at, and they need to know where it came from. If it comes from your savings, you’ll need to provide several months of bank statements. For funds from a property sale, you must show proof of the transaction. The lender will require a signed letter confirming you were actually given the funds rather than just loaned them if the money was a gift.
Why Do Expat Mortgage Applications Face More Scrutiny?
When you apply for an expat mortgage UK, the lender will review your application more closely than they would with a regular UK mortgage. One reason is that money often passes through multiple banks and countries before it gets to the UK, and lenders need to track each step.
Another reason is that documents from other countries can differ from UK documents. They are usually translated before they’re accepted. Lenders monitor everything very carefully in order to prevent fraud.
Many people hire an expat mortgage advisor when they’re applying for a mortgage for these reasons. An advisor knows exactly what lenders need to see and can help you prepare the right documents from the start. This can make the whole process much quicker and smoother.
How to Make AML Checks Easier
You can make AML checks run more smoothly by being well-prepared.
Start by gathering all your documents in one place. This usually includes tax records, payslips and proof of your deposit.
Make sure your bank statements are clear and consistent. Avoid making sudden cash deposits as this can raise questions and slow the process down.
It’s also important to work with a specialist expat mortgage advisor. These industry specialists understand how different lenders apply AML rules and can guide you through the entire process. Always be honest about your situation. If your deposit is a gift or you have multiple sources of income, make sure you tell the broker right away. This will save time and reduce complications further down the line.
Conclusion
From now on, all mortgage applications in the UK will be subject to AML checks. However, these checks don’t have to prevent you from buying a home. With the right planning and support, the process can be a straightforward one.
Need Help?
Expat Mortgages UK helps buyers with AML checks and direct them to the very best expat mortgage lenders in the UK. Get in touch with us today to start your application and receive high-quality professional help, every step of the way.