UK Mortgages for Expats & Foreign Nationals Living in Italy
Expat Mortgages UK is dedicated to arranging UK property finance for British expats and foreign nationals living in Italy. Whether you want to invest in a London buy-to-let, buy a family home in the UK, or want to have a presence in the UK property market before you return home, our specialist mortgage products have been tailored to accommodate non-UK residents.
This guide details everything you need to know to secure a UK mortgage while living in Italy and how our expert team can help you.
Why Work with Us?
As a fully Independent Mortgage Broker working with international clients, we specialise in providing:
✅ UK Mortgages for expats and foreign nationals in Italy
✅ Buy-to-Lets, residences, and second homes
✅ Access to ALL High Street banks, building societies and specialist lenders
✅ UK mortgages available in multiple currencies or GBP
✅ Fixed, variable, and tracker rate options
✅ Solutions for employed, self-employed and retired applicants
✅ Foreign currency income and UK credit reports
✅ Full application support with UK based conveyancers and brokers
We know applying for a UK mortgage from overseas is complicated, and our specialist Mortgage Consultants will help you through your mortgage journey – pre-approval to completion, and everything in between – ensuring smooth sailing across the Italian sea to the UK mortgage landscape!
Who can apply?
You can apply for a UK mortgage in Italy as an expat or foreign national, either a British citizen or living with a non-UK passport. The main requirement is that you can evidence stable income, submit required documents and complete normal lender affordability tests.
Eligible borrower profiles include:
- British expats residing in Italy
- Italian nationals wishing to invest in UK residential property
- Citizens from the European Union and European Economic Area (EEA) with lawful residence in Italy
- Foreign nationals (Americans, Canadians, Australians) living in Italy
- Retired or pensioned with regular incomes
- Self-employed professionals with taxable income in Italy
- Dual nationals with ties to the UK
Whether you are planning to return to the UK at some point or simply investing in a stable property market, we make the financing of property in the UK from Italy simple and stress-free.
What Type of UK Expat Mortgages can I get?
UK lenders have many British Expat Mortgages products available and will be able to provide you with many different mortgage products, depending on your situation. If you’re one of the thousands of UK Expats living in Italy, your main options are:
Buy-to-let Mortgages (BTL)
Most British expat investors use Buy to Let Mortgages to acquire UK properties to generate rental income. Unlike a typical residential mortgage, buy-to-let mortgages are based on the rental potential of the property rather than your personal income.
- Typically you will need a 25-35% deposit
- Stress-tested minimum rental income against interest cover ratio (ICR)
- Usually higher interest rates than residential mortgages
- Available to both British and non-British applicants
Buy-to-let is still the best way to build your UK based wealth, particularly in regions where there is significant rental demand.
Residential Mortgages
If you plan to return to the UK in a few years or plan on buying a home for your family to live in; you may be eligible to apply for a Residential Mortgage while living abroad.
- Lenders will want to know you plan on occupying it in the future
- Some lenders will require that one of the applicants holds British citizenship
- United Kingdom taxation and legal developments may require additional or different documentation
- Interest rates (typically) lower than buy-to-let mortgages rire longer length of loan term, and can be around 30 years
Second Home Loans
Some applicants prefer to retain a presence in the UK property market for holidays, business trips, or children studying in the UK. In this instance, second home loans may be suitable.
– Treated as a residential (as opposed to a Buy-to-Let) loan
– May have a higher minimum deposit (30–40%)
– Require a clear explanation of the purpose and usage
Limited company Buy-to-Let
Many expats and overseas investors are now purchasing UK property through a UK registered limited company (SPVs) to take advantage of tax-efficient options and limited liability.
– Great for higher-rate taxpayers, or if building a property portfolio
– Will require a UK company along with a business bank account
– Lenders will consider the financials of the company and personal finances
– Can be more tax-efficient under current UK legislation
How much can I borrow on a British Expat Mortgage?
UK lenders check affordability based on your income, monthly expenses, purpose of loan, type of property (even where it’s located) and currency risk. Non-resident borrowers in Italy typically will have stricter lending criteria than UK residents.
Some general borrowing parameters:
| Loan Type | Max LTV | Notes |
| Buy-to-let | 65%–75% | Based on rental income stress test |
| Residential | 60%–75% | Based on personal income |
| Second home | 60%–70% | Based on income and property usage |
| Ltd company BTL | Up to 80% | Based on company structure & rental income |
Expat mortgage lenders also typically check DTI (debt to income) ratios and additionally cap monthly repayments to around 35%–45% of your net monthly income (particularly for residential use).
If your income is in euro (EUR) or in any other currency which is not GBP, lenders may “shade” the income down by 10–20% hould borrowed in GBP only for calculations purposes (to take account of any risk with the exchange rate).
Currency and income types accepted
Most international and UK lenders accept income in euros, particularly if you are an employee of a:
• multinational company or public body
• listed company or stable SME
• self-employed professional with tax returns in Italy
• pensioner with stable passive income
Lenders will typically want to see:
• 3–6 months payslips (or 2 years tax returns if self-employed)
• bank statements which show a regular salary or income
• details of employer or company in Italy
• an explanation of bonuses or other variable income
Some lenders will accept foreign income without any currency conversion, whilst others will require the income to be converted to GBP for assessment purposes.
How to apply for a UK mortgage from Italy
Applying for a mortgage from outside of the UK is more complicated than a more local application. The UK lenders are going to be looking for more documentation and will also take a little longer to process an overseas file. The process of applying for the mortgage is as follows:
Step 1: Talk to an expat mortgage specialist
We will assess your eligibility, discuss your property plans, and identify lenders that have a higher likelihood of approving your profile.
Step 2: Obtain a Decision in Principle (DIP)
A DIP is a non-binding approval based on your income and credit profile. It gives you a strong position when making offers.
Stage 3: Source & View UK properties
Once a property has been identified, whether purchased direct or via an agent, please ensure that the property is eligible for lending (e.g. not above commercial premises or a shared ownership scheme etc.)
Stage 4: Full mortgage application
We will collect all documents required, assist you in completing forms, and submit full mortgage application to your chosen lender.
Stage 5: Property valuation
The lender will arrange for the property to be valued to verify market value and rental potential (for BTL).
Stage 6: Final underwriting & Mortgage Offer
If approved, you will receive a formal Mortgage offer, which is typically valid for 3-6 months.
Stage 7: Completion with UK solicitor
Your solicitor or conveyancer will complete the purchase and draw down the funds.
Documents Needed
Lenders demand unequivocal proof of identity, income and financial position. Common examples of documents you may need to produce include:
Personal documents:
• Passport and proof of residence in Italy
• Proof of address in Italy (utility bill or bank statement)
• Codice fiscale (Italian tax code)
• Credit report from UK (we can help obtain)
• Bank statements (3–6 months)
• Payslips or self assessment tax returns (you will need 2 years if self employed)
• Employment contract or pension statements
Property documents:
• Sales contract or offer letter
• Estimates of rental income (if buy-to-let)
• Legal title, EPC certificate and details of property
• Limited company documents (if buying via SPV)
Tax Considerations of a UK Mortgage When Living in Italy
If you are a British expat, or foreign person residing in Italy, and you own a UK asset with a mortgage, you should pay attention to the tax implications for holding foreign assets. Italy has its own tax regime that deals with tax residents, but the UK, generally, retains taxing rights on income from the UK and capital gains – in particular, rental income and property profits on the sale of rental property.
UK Rental Income: Still Taxable When Living in Italy
If you are renting your property in the UK while living in Italy, you are still responsible for paying UK income tax on your rental income, administered through the UK Self Assessment system. You can reduce your taxable profits with allowable expenses such as mortgage interest, letting agent fees, repairs and maintenance and general property expenses.
Furthermore, as a non-resident landlord, you may also need to register under the UK Non-Resident Landlord (NRL) scheme. This means that your tenant or letting agent may need to deduct basic rate tax from your rent until you receive clearance from HMRC to receive the rent gross and submit your own returns.
UK Capital Gains Tax on Sale of UK Property
As an Italian tax resident, if you sell your property in the UK you might still be subject to UK Capital Gains Tax (CGT) on any profit. In fact, since April 2015 (and various extensions, including from 2019), UK CGT applies to disposals of UK residential property by non-resident owners. You are required to report the sale and any capital gain to HMRC even if no tax is ultimately payable.
Note: you’ll likely also have a reporting obligation from Italy on any foreign property or income; Italy has stringent requirements in the declaration of foreign property and the foreign assets in the Quadro RW form, and may apply additional taxes, such as IVIE (a tax on foreign real estate) or IVAFE (an additional tax on foreign financial assets). The UK and Italy tax obligations need to be accounted for properly, and you may be able to relieve most instances of double taxation under the UK-Italy Double Taxation Agreement.
Additional costs to consider
When buying UK property, there are costs in addition to the mortgage itself. Be sure to budget for:
✅ Expat Mortgage broker fees
✅ UK solicitor fees, typically £1,000 – £2,000
✅ Stamp Duty which depends on property value and type
✅ Property Valuation fee, typically around £300 – £800
✅ Currency exchange and transfer fees
✅ Land registry and search fees
Frequently Asked Questions (FAQs) – British Expat Mortgages Italy
Can I get a UK mortgage as a non-British citizen living in Italy?
Yes, absolutely! We work with several lenders who will accept non-British nationals living in Italy. You will have to provide proof of income, established residency and have a good credit history.
Do I have to have a UK bank account?
Not necessarily, but it is recommended. You may find some lenders might stipulate a UK bank account for setting up direct debits or being able to receive rent.
Will I pay UK tax on the rental income?
Yes. You will have to register with HMRC via the Non-Resident Landlord (NRL) scheme. You may also have to declare the income in Italy under dual-taxation agreements.
Can I use Euro income for a GBP mortgage?
Yes. Most lenders will accept EUR income, although they might “shade” the amount to take into account the exchange rate.
Can I get an expat mortgage from a UK Limited Company?
Yes. Many expats and foreign national investors will use UK limited companies (SPVs) for tax efficiency purposes. We can assist in putting the structure together.
Why British expats in Italy choose us
✅ Access to ALL UK mortgage providers from foreign countries
✅ Fully Independent property finance advice and tailored solutions
✅ Comprehensive service including solicitors, lenders, valuations and insurances
✅ More than a decade of Advisor experience helping Italy-based expats and foreign nationals
✅ Dedicated Mortgage Advisor / Dedicated Case Manager with direct contact details
✅ Client Portal for 24/7/365 access to real-time status updates
UK Expat Guide to Living in Italy: Best Cities, Regions & Property Hotspots
Italy is one of the most popular expat destinations in Europe due to a combination of culture, climate, cuisine and cost of living. Consequently, many British expats and international professionals live all around the country – some are retired, while others are living in Italy for work, lifestyle or family.
If you are living in Italy considering a UK mortgage, often your location in Italy will impact your income profile, documentation and, sometimes, access to financial services.
Let’s take a look at some of the major expat regions in Italy and what makes them such a draw:
Rome – The historic capital
Rome is a center for diplomats, journalists, international organisations (for example the UN’s FAO) and those in academia or tourism. As Italy’s capital, it boasts infrastructure, international schools, embassies, and consulates.
Expatriates, living/working in Rome, tend to be quickly compliant with UK mortgage lenders, holding stable, often euro, income from good employers with a simple employment verification process. If you are employed by recognised institutions and large global corporations in Rome, you might have a wide selection of options offered by UK mortgage lenders.
Milan – Italy’s financial and business powerhouse
Milan is the economic capital of Italy. It is home to leading sectors and industries, including finance, fashion, and technology. Milan has the highest GDP per capita in Italy, and it has an international business culture to attract high-earning professionals.
British expats in this city usually work for blue-chip companies on high salaries, making them appealing to lenders in the UK for a residential or buy-to-let mortgage, because they have stable, verifiable income.
Tuscany – A Favourite for Retirees and Second-Home Owners
Tuscany, especially the cities of Florence and Lucca, and the region of Chianti, tends to attract British retirees, creatives, and telecommuters because of its beautiful scenery and relaxing pace of life.
Residents in this region tend to receive pensions or passive income from the UK, which quite a few lenders prefer to see specifically has an identified paper trail. A UK mortgage is typical for a Tuscan expat wanting to invest back home or possibly stay connected to the UK.
Southern Italy & Sicily – Lifestyle and Affordability
Areas such Puglia, Calabria, and Sicily do attract both digital nomads and families looking for a lower cost of living and relaxed lifestyle.
Sources of income in these areas are often a mix of sources-freelancing/remote work, rent- which might be less documented. This said, obtaining a mortgage with the right help is still very possible.
Northern Italy – Lakes, Mountains, and Cross-Border Workers
Areas such as Lombardy, Trentino-Alto Adige, and the Italian Lakes are sought after by commuters working in Switzerland or Austria, as well as retirees and wealthier buyers.
UK Expats often have a solid euro or Swiss franc income and often qualify for mortgage products in the UK meant for high-net-worth individuals and those with more complicated finances.
Ready to invest in UK property from Italy?
Every day we help expats in Italy to finance homes, investments and futures in the UK. And whether you are building a portfolio or buying your forever home, we are here to help you.
📞 Book a free consultation
📧 Send us your questions or property plans
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Expat Mortgages UK – your bridge to the UK property market from Italy.
