UK Mortgages for Expats in Vietnam / Expat Mortgage Broker UK

UK Mortgages for Expats & Foreign Nationals Living in Vietnam

If you’re a UK citizen currently living in Vietnam, you might be thinking about buying property in the UK, either as a future home, a buy-to-let investment, or for refinancing.

This guide provides all the information you need to know about buying property in the UK, so it provides you with information about eligibility and documentation, the application process, any pitfalls to avoid and the tax implications.

As the UK’s leading Expat Mortgage Broker we’re here to hold your hand and help you every step of the way.

Who is this guide for?

✅ Individuals presently residing and employed in Vietnam, living in locations such as Ho Chi Minh City, Hanoi, Hoi An, or Da Nang.
✅ Expats wishing to purchase or Buy-to-Let a UK residential property, including mortgages and remortgages.
✅ Those who are self-employed, digital nomads, and other individuals with multiple income streams.
✅ Former UK residents that may have spent a considerable time outside the UK.

We know that applying for a UK mortgage from overseas is complex, so we will help you throughout your mortgage journey – from pre-approval to completion and everything in between – to ensure it’s a stress-free process.

Why Expat Mortgages can be more complex

No UK address

High street lenders would prefer potential borrowers to have a residential address in the UK as it makes their application process slightly easier.

Weaker UK credit file

UK credit scores do not allow for credit scores to be transferred from overseas, so being long term overseas results in a very basic credit history, if one at all.

Foreign Income

Earning your income in VND or USD means lenders will invoke a currency “haircut” or restrictions, meaning lenders will only generally accept currencies they define as stable.

Higher deposit requirements

Providers specialising in lending for UK expatriates generally only pursue lending 20-25% deposits, however, in some higher risk instances they will an accept 40% deposit.

What Type of UK Mortgages can I get from Overseas?

There are numerous British Expat Mortgage products available from UK lenders and all lenders can provide a variety of mortgage products, based on your circumstances.

If you’re one of the tens of thousands of UK Expat residents in Vietnam, in addition to the foreign nationals, you’ll have four main options for a UK mortgage from overseas:

Buy-to-let Mortgages (BTL)

The majority of British Expat investors use Buy to Let Mortgages to purchase UK properties used for rental income. Unlike a conventional residential mortgage, buy-to-let mortgages are based on the rental potential of the property, and not an applicant’s personal income.

During the application process, you will typically need to provide:

25-35% deposit.
A stress-test of the minimum rental income against the Interest Cover Ratio (ICR).
Generally a higher interest rate than residential mortgages.
Available to both British, and foreign national applicants.

Buy-to-let is still the best way to build your wealth in your UK based property, especially in geographic areas with higher rental demand.

Residential Mortgages

If you are looking to return to the UK in several years, or plan on acquiring a house for you and your family to live in, you may be able to make a Residential Mortgage application while living abroad.

Lenders will want evidence of your future occupation.
Some lenders may require that one of the applicants holds British Nationality.
Depending on developments legally and for taxation in the United Kingdom, you may have to have different or additional documentation.
Interest rates (generally) lower than buy-to-let mortgages will ride longer length of loan term, and could be about 30 years.

Second Home Loans

Some prospective borrowers would like to retain their place in the UK property market because they want to have a property to stay in when they are in the UK for holidays, family or business, or if they have children studying in the UK. In this case, second home loans may be appropriate.

– Processed as a residential (not a Buy-to-Let) loan.
– Higher minimum deposit or personal guarantee (30-40%).
– Need applicants to be clear of intended use and purpose.

Limited company Buy-to-Let

A growing number of UK expatriates and foreign investors are now buying British property through a registered UK limited company (SPVs) in order to access tax-efficient options and limited liability.

– Good for higher-rate taxpayers, or when you want to build a property portfolio.
– Just keep in mind you will need a UK company with a business bank account and also have to submit annual company accounts.
– The lender will look at the financials of the company as well as the personal finances.
– Can be more tax-efficient under current UK law.

Expat Mortgage Calculator UK

How much can I borrow on a UK Expat Mortgage if I live in Vietnam?

If you are a UK expat or a foreign national living in Vietnam, you can make an application for a UK expat mortgage but lenders will be taking a few additional checks into consideration.

UK mortgage lenders will usually assess affordability based on your overseas income and fixed monthly expenses, loan purpose and property type (e.g. flat, house) and location (e.g. London, Birmingham, etc.). If you are not a UK resident, you will usually be subject to stricter lending criteria than someone living in the UK.

As lenders will take into account your debt-to-income (DTI) ratio, they will also look to limit repayments to a percentage of your net monthly income (usually between 35%-45%) for residential purchases.

If you are earning in Vietnamese Dong (VND) or any other foreign currency (USD, AUD, SGD, etc.), most UK based lenders will “currency shade” you; this usually means lenders will adjust the value of your income by between 10%-25% when they assess how much you can borrow as a mortgage. This is for purposes of foreign currency exchange rate risk management since loans are usually issued in GBP.

How to Apply for a UK Mortgage while Living in Vietnam

Applying for a UK mortgage from Vietnam is much more complicated than applying for one in the UK. Lenders will expect extra documentation and even longer processing times due to time zone differences, and if necessary, verifying your foreign income. Here are the steps to apply for a UK mortgage while interested in remortgaging or purchasing in the UK from Vietnam.

Step 1 – Speak with a UK Expat Mortgage Specialist

We will talk about your income in Vietnam, your property plans in the UK (residential or buy-to-let) and match you with lenders who are comfortable with lending to expats in Vietnam.

Step 2 – Get a Decision in Principle (DIP)

This is not a mortgage agreement; instead a non-binding indication of how much you could borrow using your Vietnam based income and credit profile (that may be from the UK or international). The DIP will strengthen your position when making an offer on a UK property.

Step 3 – Locate and assess a UK Property

You need to get searching for suitable UK properties (either directly or through a UK estate agent). Just make sure the property meets your lenders’ requirements (eg not above commercial premises, not shared ownership etc).

Section 4 – Submit the full application for a mortgage

Once you have a DIP and a property, we will help you gather all of the documentation (for example proof of income, bank statements, residency in Vietnam, etc), complete all of the application forms and submit your full application to lender for you.

Step 5 – Property Valuation

Your lender will require a valuation of the UK property to review the market price for the property and how much potential rental it would achieve (for buy-to-let mortgages). We can provide you independent quotes for valuations if you wish, else your lender can arrange.

Step 6 – Underwriting and Mortgage Offer

If the lender feels comfortable after the last checks, you will receive a formal mortgage offer. This is normally valid for 3 to 6 months. You now have completed all of the major milestones just before completion.

Step 7 – Completion through a UK Solicitor

A solicitor or conveyancer based in the UK will go through the final legal steps and will control the drawdown of funds to complete your purchase.

Please note: income you earn in Vietnamese Dong (VND) or in any foreign currency, is at risk of being “currency shaded” (10–25% shading), which is associated with the risk in the exchange rate. You can potentially limit this risk by documenting income strongly and working with a mortgage broker specialised in expats who deals with lenders who accept (and calculate) income in the base currency of your income.

Documents Needed for a UK Expat Mortgage from Vietnam

To apply for a UK mortgage from Vietnam, lenders require various documents to verify your identity, income, and financial status. Here are summary of some documents you will most likely need to provide:

Personal Documents:

Passport and evidence of your stay in Vietnam (visa or residence card)
Evidence of your address in Vietnam (utility bill/bank statement/lease)
Credit report from the UK (we can help with this)
Bank statements (generally 3–6 months)
Payslips, self-assessment tax returns (if you’re self employed you’ll need 2 years tax returns)
Employment contract or pension statements (for income and security)

Property documents:

Sales contract or offer letter (issued by the UK property seller or agent)
Official estimates of rental income (in the event that you are applying for a buy-to-let mortgage)
Legal title documents, energy performance certificate (EPC), property details
Limited company documentation (in the event that you are purchasing the property through a special purpose vehicle or SPV)

These documents allow lenders in the UK to determine your financial standing and loan repayment ability whilst you reside in Vietnam. Making sure that you keep the documents in order and easily verifiable will help with the application process.

Tax Considerations of a UK Mortgage When Living in Vietnam

If you are a British expat or a foreign national living in Vietnam and you possess a UK property subject to a mortgage, consider the important tax implications of holding and earning income from an overseas asset. The UK usually reserves taxing rights on income and capital gains originating from UK-based property, while Vietnam has its taxing rules regarding foreign income and assets for its tax residents.

UK rental income: Still taxed even when you live in Vietnam

If you are renting your UK property whilst living in Vietnam, you still have a liability for UK income tax on the rental income, usually through the UK Self Assessment system. You can deduct certain allowable expenses to arrive at your taxable profit, such as mortgage interest, fees for property management, repairs, maintenance, and other costs associated with the letting of your UK property.

As a non-resident landlord, you may also have to register under the UK Non-Resident Landlord (NRL) scheme. If you don’t register, your letting agent or tenant may need to deduct basic rate tax from your rental income until you are basically registered with HMRC and can receive the rental payments gross and do your own tax return.

UK Capital Gains Tax on Sale of UK Property

If you are selling your UK property while living in Vietnam, you may still have a tax obligation in the UK. You will still be liable for UK Capital Gain Tax (CGT) on any gain made. Since April 2015 (expanded in 2019), non-residents of the UK disposing of UK residential property must report their sale and any capital gain to HMRC regardless of whether any tax is due later.

You must report your sale to HMRC by law within a certain period, even if you think you have no gain, and as such, no tax to pay. If you do not do this correctly there can be penalties.

Vietnamese Tax Considerations for Foreign Property and Income

Vietnamese tax residents must declare their worldwide income including rental income or gains on the sale of property located outside of Vietnam. Vietnam may impose taxes on this income, especially if this income is brought into Vietnam.

Depending on your residency status and level of income you may also be required to declare your ownership of overseas property and report certain information on your annual personal income tax return. Vietnam currently does not assess wealth taxes but, the local tax authorities are becoming stricter in enforcing transparency and foreign income declarations.

Avoiding Double Taxation

Vietnam and the UK have a DTA which may allow you to offset taxes you have paid in one country against how much tax you have to pay in the other country to prevent the same income from being taxed twice. Make sure to obtain tax advice from a professional so that you remain compliant in both tax jurisdictions, and make use of any reliefs under the UK-Vietnam tax treaty.

Frequently Asked Questions (FAQs) – British Expat Mortgages Vietnam

Can I get a UK Expat Mortgage without a UK address?

Yes, as long as you use a lender that accepts overseas postal addresses. A UK address makes it easier to secure the best mortgage deals so is recommended if possible.

Do I have to be a UK citizen to get a UK Expat Mortgage from Vietnam?

No, although it does help. Foreign Nationals living in Vietnam can also qualify for UK mortgages, especially when purchasing UK property as an investment, or if they have some or previous links to the UK e.g. family, residency, or work history. Stricter lender criteria will apply to foreign national applicants, plus also extra paperwork is typically required.

Is renting out a UK home difficult to do from overseas?

It is harder, but still certainly possible to do. You’ll need to use a UK letting agent and to file UK tax returns and will also be capped on your mortgage interest relief. We recommend using a specialist Tax Advisor who is experienced in UK and Vietnam tax rules.

How much deposit do I need to put down for an Expat Mortgage?

Around 20%-25% is standard for a UK expat mortgage; although some other expat lenders may ask for up to 40% deposit if you are considered a high risk.

Will VND income be accepted for a UK Mortgage?

Yes, although some expat mortgage lenders may apply a “currency haircut” or insist on GBP/USD contracts. Specialist advice is essential, so always consult an expat mortgage broker.

How long does the mortgage process take?

This very much depends on a number of factors including the lender, the solicitors, how quickly you supply documentation and also if there is a chain involved etc. For a straightforward remortgage, the end to end process is typically between 6 – 12 weeks.

For purchases, the average timescale for completion is around 12 weeks but this can often be longer if complex chains are involved.

Which currencies do UK mortgage lenders accept?

UK mortgage lenders prefer to see income in strong and stable currencies like GBP, USD, EUR, or SGD. If you’re paid in Vietnamese Dong (VND), you will find it’s likely that your choices will be more limited, but still certainly achievable, especially if all your details are fully verifiable and you are employed by an international organisation.

Why British expats in Vietnam choose us

✅ Access to ALL UK mortgage lenders from other countries.
✅ Fully Independent property finance advice and bespoke solutions.
✅ Full service offering including solicitors, lenders, valuations and insurances.
✅ More than a decade of Advisor experience working with Vietnam-based expats and foreign nationals.
✅ All clients benefit from direct contact to their dedicated Mortgage Advisor and a dedicated Case Manager.
✅ Access to our innovative Client Portal for real-time status updates 24/7/365.

UK Expat Guide to Living in Vietnam: Best Cities, Regions & Property Hotspots

As a result of Vietnam’s dynamic economy, varied culture, affordable cost of living, and warm, welcoming climate, it increasingly appeals to British expats and foreign professionals in Southeast Asia. Both retirees maintaining a slower pace of life and professionals working in fields such as education, finance, development or tech can now tap into the growing potential of the expat community in Vietnam.

If you are currently living in Vietnam and you want to apply for a UK mortgage, where you live, and your personal circumstance will impact your eligibility, documentation, and available lenders.

Let’s explore some of the top cities and areas popular with UK expats in Vietnam – and also how where you live in Vietnam could affect your application for a UK mortgage.

Hanoi – The Political and Cultural Capital

Hanoi, being the capital city of Vietnam has embassies, international NGOs as well as some of the larger educational institutions and regional headquarters for many multi-national companies. Expats from the UK who identify themselves as Brits typically work in development, diplomacy, education or multinational companies.

UK mortgage lenders will tend to look fairly positively on applicants from Hanoi if they are employed by an established institution or an international organisation. It is usually straight-forward to document your income from employers in Hanoi, and if your salary is in a good currency such as an USD equivalent (or VND with proper foreign currency allowances) it is much more likely to be a straightforward way to process your mortgage application.

Ho Chi Minh City: the Commercial Hub

One of Vietnam’s biggest cities, Ho Chi Minh City, is known historically as Saigon and the commercial and financial capital of Vietnam. It is also a hub for international talent, attracting many expat careers in banking, technology, manufacturing, and international trade firms.

The city has great infrastructure, plenty of international school options, and offers a lively vibrant lifestyle.

Being employed in HCMC can offer expats salaries greater than salaries in other countries and strong overall benefits for jobs in Vietnam by adding to your overall income, this is also of huge value for the role it can play in your borrowing profile with UK lenders.

Mortgage lenders are more likely to accept applications where income is consistent, documented and from reputable companies within the booming economy of HCMC.

Da Nang – The Coastal Way of Life

Da Nang is a mid-sized coastal city with a high quality of life, and a slower pace of life compared to Hanoi and HCMC. It’s very popular with digital nomads and remote workers, as well as early retirees, who want to have the amenities of a city without the hustle and bustle of living in the city, while still being on the beach.

Even though living and working in Da Nang might not generate a comparable income level (possibly lower, more variable or based on contract work for freelancers, or remote working), under certain conditions UK mortgage lenders can consider applications from applicants who have money in the UK. For example, UK applicants can have overseas income (e.g. UK company, or overseas contracts) if they can demonstrate a track record with clear documentation (tax returns, bank statements etc.). You may be required to show additional evidence to verify your income is stable.

Things to consider: Location Can Change the viability of the mortgage

Where you choose to live in Vietnam can affect not only your income and currency, but can also relate to how lenders view the ease of verifying your employment and residency status. Often UK lenders have a bias towards those who are employed by International bodies, long-standing NGOs or international companies that have a clear payroll system. The longer or clearer the income source, the better mortgage terms you’ll be able to secure!

Ready to invest in UK property from Vietnam?

We help expats in Vietnam daily finance their homes, investments and futures in the UK. Whether you are creating a portfolio or simply buying your forever home, we can support you.

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