Are you a British expat living abroad who is hoping to buy a house in the UK? Perhaps you are worried that you will not be legally permitted to because you do not have a UK credit score?
Thankfully, the good news is that you can still get an expat mortgage in the UK even if you do not have a UK credit history. Some lenders have a strong understanding of the complex situations UK expats face and they work hard to offer solutions tailored to their needs.
Why Lenders Pay Attention to Credit Scores
Most lenders in the UK check your credit score to see whether you manage credit responsibly and pay your bills on time. The problem is, however, that after living abroad for a few years, you may no longer have a current credit history in the UK. This does not mean you cannot get a mortgage, but it does mean the lender may need to use other methods to assess whether you will be able to repay the loan.
Lenders can look at other things besides a UK credit file, such as:
- Overseas earnings (payslips or a contract of employment)
- The amount of money you have saved or put down
- Recent bank statements from your overseas bank account
Even if you have not lived in the UK recently, these documents can help you evidence to lenders that you will be able to repay the loan. If you want to actively rebuild a UK footprint alongside this, our guide on how to transfer your credit history to the UK as an expat covers practical steps you can take.
Why You Should Hire an Expat Mortgage Advisor
Applying for a UK mortgage when living outside of the UK can feel daunting, as things work differently and not all banks will lend to expats. This is one of the many reasons an expat mortgage advisor can be incredibly valuable.
If you do not have a UK credit history, an expat mortgage advisor can help you find suitable lenders, gather all the essential documents you will need for your application and guide you through the entire online process.
What Lenders Want to See: Proof of Income
Lenders will need to look at a few simple things before they approve your application to make sure you can afford the mortgage. Even if you do not have a UK credit score, they will still assess the following:
- Your current salary
- How long you have been working in your current job
- Any other income you have, such as rental or investment income
You are also more likely to be approved if you are in steady employment. If you frequently change jobs or do not have well-documented income, your chances of approval may be reduced.
How Much Money Can You Borrow Without a UK Credit Score?
Most of the UK companies that offer mortgages to expats in the UK will lend you between 75% to 80% of the property’s value. This means you need to put down 20 to 25% as a deposit. The more money you put down, the better your chances of approval become, since there is deemed to be less risk to the lender.
What You Need to Provide
When you apply for a UK mortgage, make sure you have the following ready for the lender: a passport or other form of ID, recent payslips or proof of income, bank statements from your home country and proof of your deposit. Having these documents in place will make the process both quicker and simpler.
Easy Steps to Get a UK Mortgage from Abroad
Many people who move abroad are still able to get UK mortgages. You do not even have to return to the UK to get a mortgage. To get the wheels in motion on finding a UK mortgage:
- Talk to a consultant or broker
- Get your pre-approval from Expat Mortgages UK
- Send documents required for an expat mortgage including your proof of income and ID
- Open a UK bank account (some lenders will do this on your behalf)
- Choose your property and purchase it
Ways to Improve Your Approval Chances
You can also improve your chances of being accepted even without a UK credit history by putting down a larger deposit (25% or more, if possible), keeping your finances stable, staying in the same job for at least six months and paying off as much existing debt as possible before you apply. Our UK expat mortgage application guide covers this in more depth, including how to position your case with the right lender from the outset.
What Sets Expat Mortgages Apart
Expat mortgages are designed for people who want to buy or refinance a home in the UK while living abroad. These mortgages are often based on income and bank statements from other countries and the interest rates are usually slightly higher than those on standard UK mortgages.
If you are buying a property to rent out, some lenders will allow you to use an estimated rental income.
Common Mistakes to Avoid
You may face long delays or even outright rejection if you choose a lender that does not normally work with expats, fail to seek professional advice, submit incomplete paperwork or are not clear on how much you can afford to borrow. To save time and reduce stress, avoid these mistakes by working with a specialist expat mortgage broker from the start. Our guide on why some UK lenders say no to expats and how to get approved covers the most common decline triggers in more detail.
Final Thoughts
You can still get an expat mortgage in the UK even without a UK credit score. Many lenders will now consider your foreign financial records. With the right advice and careful planning, you can buy property in the UK without even setting foot in the country.
Find out what opportunities are available when buying or investing in a second home in the UK by talking to Expat Mortgages UK, a whole-of-market expat mortgage broker.
Expat Mortgages UK is a specialist broker directly authorised and regulated by the Financial Conduct Authority. We work exclusively with expats and foreign nationals buying UK property with overseas income. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: +44 1494 622 555 Email: info@expatmortgages-uk.com
Related Pages
- Common Challenges Expats Face When Applying for a UK Mortgage – the eligibility hurdles that come up most often and how to prepare for them.
- Can Expats Get a UK Mortgage? – eligibility criteria, lender selection and what the specialist market looks for.
- Residential Mortgages for Expats – financing for UK property to live in as a British expat or foreign national.
- Foreign Investment in the UK Guide – what overseas buyers need to know before investing in UK property.
- Expat Mortgage Calculator – get an instant estimate that allows for foreign currency income.