UK Mortgages for Expats & Foreign Nationals Living in South Korea
If you’re a British expat or foreign national residing in South Korea, and are considering purchasing property in the UK for a future residence, a buy-to-let investment or even refinancing an existing property, then you’ve found the right place.
This guide has it all for you to look at when purchasing UK property from South Korea. We discuss what you’ll need to be eligible to invest in the UK real estate market, your documentation, application process, what to look out for and tax implications.
As the leading provider of Expatriate Mortgages UK we here to help you from your first enquiry through to completion and beyond.
Who is this guide for?
✅ Anyone currently living, residing, and working in South Korea such as Seoul, Busan, Incheon, Daegu etc.
✅ Expats or Foreign Nationals wishing to purchase a UK Buy-to-Let or a residential property through a new mortgage or remortgaging an existing property.
✅ People that are self employed, remote workers, digital nomads, or people with multiple or irregular income.
✅ UK citizens working for international companies, embassies, or stationed British military in South Korea.
✅ Former residents of the UK that have been living abroad but maintain some sort of connection to the UK.
We understand that applying for a UK mortgage for Non-UK Residents is complex enough, let alone times zones, different types of income and different standards of documentation. We will be with you every step of the way from pre-approval to completion, to make this process as simple and stress free as possible.
Why Expat Mortgages can be more complex
No UK Address
High street UK lenders usually want borrowers to have a “live” UK residential address so they can conduct credit checks and verify their identity. If you’re living in South Korea as an expat or foreign citizen, this will be more difficult.
Weak UK Credit File
Credit histories accrued in South Korea will not transfer to the UK. Because many long-term expats do not have active credit records in the UK, they may be limited to using their last known active credit file. Limited or inactive UK credit files can make it difficult to qualify according to standard lending criteria.
Foreign Income
If you earn your income in KRW (Korean Won) or other non-GBP currencies, lenders often apply something known as a “currency haircut”. They will only recognise part (some proportion) of your income, leaving their potential exposure to a measure of currency risk. Some lenders may prefer their income in stable currencies like GBP, USD, or EUR.
Higher Deposit Requirements
UK mortgage lenders that work with expatriates commonly require a minimum deposit of 20-25% and possibly as high as 40% in cases of heightened risk. This is primarily due to being a foreign borrower with many complexities and perceived higher risks.
Increased documentation
Expat mortgages have more documentation than typical UK applications. You can expect to provide documents/items including the following:
• South Korean payslips and employment contracts
• Local and/or UK tax returns
• Bank statements from your Korean and international bank accounts
• Proof of residence (utility bills, phone bills, etc.)
What Type of UK Mortgages can I get Living in South Korea?
There are many UK Expat Mortgage products and lenders will tailor mortgage products based on your own personal and financial circumstances.
If you find yourself one of the many UK expats now living in South Korea, whether it be Seoul, Busan, Incheon or beyond, you generally have four choices for mortgages, when buying UK property from abroad:
Residential Mortgages
If you intend to return to the UK, or are purchasing a property to eventually live in with your family, then you may able to access a Residential Mortgage arrangement, even if based in your current location of South Korea.
Consider the following:
• Lenders would want an indication of future intention to occupy the property.
• Some lenders may require at least one of the applicants is a British citizen.
• Additional documentation may be required following any updates to UK law or tax.
• Lenders generally offer lower interest rates than buy-to-let products.
• Terms can be anywhere between 25–30 years.
Buy-to-let Mortgages (BTL)
Buy to Let Mortgages are the most common option for British expats and foreign nationals seeking to purchase UK property with the intention of rental income investment. With BTL mortgages, rather than just being assessed on your personal income, the lenders are primarily interested in the projected rental yield on that property.
For a UK buy-to-let mortgage, you will most likely need:
• A 25-35% property deposit, subject to lender requirements.
• Evidence that the rental income can sustain a minimum Interest Cover Ratio (ICR) stress test.
• To accept slightly higher interest rates than residential mortgages.
• To meet documentation requirements as a British or foreign national living in South Korea.
Buy to let remains a strong route for building long-term UK property wealth and prosperity, especially in cities and towns with consistent rental demand.
Second Home Loans
As UK expats living in South Korea want to retain a connection to the UK property market (for family visits, holidays, work/business visits, or just to have a base while their children are studying in the UK), a second home mortgage may be the next reasonable step.
Important points:
- It will be classified as a residential mortgage and not a buy-to-let.
- Deposit requirements will usually be higher – circa 30-40%.
- Lenders will want clarity surrounding how the property is used for personal use.
- A second home loan cannot be rented out unless expressly stated by the mortgage lender.
Limited company Buy-to-Let (SPVs)
The number of UK expats and non-resident property investors buying UK property through a UK registered limited company (Special Purpose Vehicle – SPV) is increasing, driven by tax advantages and limited liability.
Ideal for:
- Those in a higher tax bracket or are wanting to grow their own property portfolio.
- Applicants with a long-term investment strategy.
Things to consider:
- You will have to create a UK limited company and open a UK business account.
- The lender will consider both your personal income/creditworthiness as well as that of the company.
- You will have to provide annual accounts and meet compliance requirements for UK Companies.
This route affords more tax efficient ownership under current UK tax law.
Try our Expat Mortgage Calculator UK now to see how much you can potentially borrow and what your monthly mortgage payments will be.
How Much Can I Borrow on a UK Expat Mortgage if I Live in South Korea?
If you are a UK expat or foreign national and are currently living in South Korea you can apply for a UK expat mortgage to purchase or remortgage a property in the UK, but mortgage lenders will apply extra checks compared to applications coming from people living in the UK.
What Will Lenders Consider?
UK mortgage lenders usually assess affordability based on a number of factors:
- Your income from South Korea
- Your fixed monthly financial commitments (housing costs such as rent, loans, credit card repayments etc).
- Purpose for the loan (buy-to-let or residential purchase, remortgage etc)
- The property type and location in the UK (flat in London, sold house in Manchester etc)
Since you’re based outside of the UK, you could expect lenders to apply more strict lending measures, however, depending on lender, the lending criteria will differ.
How Are My Income and Borrowing Impacted?
A key factor in the affordability assessment is the “Debt-to-Income” (DTI) ratio. Most lenders will cap your UK mortgage repayments at about 35%-45% of your net monthly income, particularly with residential mortgages.
If your income is in South Korean Won (KRW) or another foreign currency (for example, USD, SGD, AUD), most UK lenders will apply “currency shading” to allow for foreign currency exchange risk. This means lenders generally will discount your income by 10% to 25% to allow for currency fluctuation, since your mortgage will generally be in GBP.
Summary
In other words if you are residing in South Korea and need to access a UK expat mortgage:
– You may also apply as a UK expat or as a foreign national.
– They will assess your borrowing capacity based on income, expenses, the type of loan and your property (including applicable deductions to allow for currency depreciation).
– If you are earning in KRW or any other foreign currency, the lender will adjust for exchange rate risks.
– Expect more conservative lending rules compared to those based in the UK.
– A UK-based mortgage broker who has experience with non-resident applications from South Korea will be able to help you understand your borrowing capacity and which lenders are suitable to work with.
Documents Needed for a UK Expat Mortgage from South Korea
If you are applying for a UK mortgage from South Korea, UK lenders will ask for a and a few documents to check and verify your identity, income, living situation, and financial circumstances. Below is a list of the documents that lenders will typically ask for:
✅ Personal Identification:
– Current passport.
– Evidence you are a legal resident of South Korea – evidence can include a visa, Alien Registration Card (ARC), or other legal residency documents.
✅ Proof of Address in South Korea:
A recent utility bill, South Korean bank statement, or rental agreement (the document must show your full name and address)
✅ Credit History:
A UK Credit report – although you live abroad, UK lenders will regularly review your historical UK credit activity
(Tip: If you need assistance we can help you get a UK credit report.)
✅ Proof of Income:
– 3 to 6 months bank statements evidencing your salary or evidence of your regular income payments.
– Latest payslips (usually 3 months’ worth).
– Employment contract showing salary and duration of employment
(If you are self-employed, be prepared to show at least 2 years of tax returns or accountant prepared statements)
(If you are retired, you will need to provide pension statements)
Key Points:
Any documents in Korean may have to be translated into English officially/find out what the lender requires.
Electronic copies of documents (PDFs or scans) will generally be acceptable for the initial application, however some lenders may request certified copies at some point.
An International UK Mortgage Broker experienced in British expat applications from South Korea experience will be able to help ensure your paperwork is in order and assist to expedite the approval as best as they can.
Frequently Asked Questions – British Mortgages for Expats in South Korea
Can I obtain a UK mortgage if I am living and working in South Korea?
Yes, absolutely – you can apply for a UK mortgage if you are a UK expat or foreign nationals living in South Korea. While more documentation and checks will be required because you are living overseas, there are lenders who are used to working with applicants living in South Korea.
Will the fact that my income is in South Korean Won (KRW) impact how much I can borrow?
Yes. If you are earning USD, KRW or any other foreign currency, lenders will typically apply a “currency shading” adjustment to your income which is around a 10%-25% adjustment. Their overall risk factor is the exchange rate fluctuations as the mortgage will always be in GBP.
What types of UK property can I buy from South Korea?
When making a purchase from abroad, there are many property types available in the UK, residential houses, buy-to-lets, or new build properties. Some lenders may have restrictions on property type or location(ie – student accommodation), so always check in advance and speak with an experienced expat mortgage broker.
Can I use a UK expat mortgage to purchase property for occupancy by family?
Yes, absolutely. Many expats buy homes in the UK for their children, elderly parents, or for their own use when visiting. It is important to note though, that the purpose of the property (residential v buy-to-let) will still affect the type of mortgage you need to secure.
Do I have to travel to the UK to finalise the mortgage?
No. If you are working with an experienced expat mortgage broker, the whole process can usually be coordinated from South Korea; that’s the benefit of an expat mortgage. However, you might have to attend an appropriate local notary in South Korea or your embassy to provide some verification of documents at your end.
Will tax residency in South Korea impact my UK mortgage application?
The fact that you are a tax resident of South Korea does not disqualify you from applying for a UK mortgage. You may be asked to provide proof of income/tax compliance in accordance with South Korean law, particularly if you are self-employed.
Do any British lenders work with Expats and Foreign Nationals in South Korea?
Absolutely. There are a number of UK-based lenders that accept applications from both expats and Foreign Nationals living in South Korea; however each lender has different criteria for an application. Working with a specialist expat mortgage broker who deals regularly with South Korean-based clients can help you find the right lender for you.
Why British Expats in South Korea Choose Us
✅ Full Access to the UK mortgage market including lenders that accept applications from South Korea.
✅ Fully independent mortgage advice and tailored solutions for expats and foreign nationals.
✅ Full end-to-end service, including solicitors, lenders, valuations, FX and insurance options.
✅ Direct Contact with your dedicated Mortgage Advisor, along with your own personal Case Manager support.
✅ 24/7 access to our secure Client Portal for real-time updates on your mortgage application status.
UK Expat Guide to Living in South Korea: Best Cities, Regions & Property Hotspots
South Korea is quickly becoming one of the favored locations for British expats. It offers a unique combination of modern convenience, rich culture, and great infrastructure – for both locals and expats. Whether you’re relocating for work, study or adventure, understanding where to live will be key to settling in.
The capital and economic center of South Korea, Seoul is the most popular option for many expats. It features a lively international community, efficient public transport, good-quality healthcare, and an active job market. Districts such as Itaewon, Gangnam, and Yeouido are especially popular for their combination of lifestyle, amenities, and nearby international schools and business areas.
Busan is South Korea’s second largest city with the coastal lifestyle of beaches and less frantic pace of life. It provides a great for expatriates to live in a slower town while still maintaining a more urban environment alongside nature. For foreigners, areas such as Haeundae and Gwangan are more favorable.
If you’re looking for an immersion in Korean culture, historic Gyeongju is rich with South Korean history and a more quiet and traditional environment. In addition, Daegu and Daejeon are highly regarded areas that newer, low-cost alternatives to the larger cities for teachers and tech professionals.
From a property prospective, most expats in South Korea will rent compared to the complexities and restrictions of home ownership as a foreigner in the local housing market. However, if you’re staying for a longer term, serviced apartments and officetels (studio-style units) are conveniently located in many expat-friendly neighborhoods.
Since South Korea caters to different lifestyles, whether it’s the hustle and bustle of Seoul or the beautiful coast of Busan, it’s an attractive option for expats from the UK thinking about living and working abroad.
How we can Help
Obtaining a UK mortgage while living overseas (for example, in South Korea) can be a seamless experience with the right advice. If you live in South Korea, you are likely used to good digital infrastructure, secure financial documentation, and formalized employment. This often puts lenders in a better position to satisfy their requirements. The majority of the time, it is the complexity of achieving compliance with cross-border mortgage regulations, currency aspects, and overseas documentation that require specialist support.
Now, let’s take a closer look.
Expat Mortgages UK are experts at arranging UK mortgage deals for British expats and foreign nationals who are living in South Korea. We know the expat lending market and lender requirements inside out. We will arrange everything from start to finish and we will save you valuable time, anxiety and expensive mistakes.
We offer a full end-to-end support, providing assistance with all documentation requirements, communicating directly with UK lenders and liaising with solicitors and surveyors where necessary. Whether you’re purchasing your first property, investing in a buy-to-let, or remortgaging an existing home, you can trust our team to ensure that the entire process is seamless from beginning to end.
With a dedicated Mortgage Advisor and Case Manager assigned to every client, and real-time updates on our secure Client Portal, we make overseas UK property financing easy, even when you are located thousands of miles away.
Get in touch today so we can secure your UK Expat Mortgage from South Korea.