More and more Britons are building a life abroad, whether for work, family, study or a change in lifestyle. For many, the British House remains an important part of the plan.
The latest Bureau of National Statistics (USData shows an estimated 246,000 British nationals left the UK in the year ending December 2025.
That was slightly lower than the 257,000 who left last year, but it is still a large number of people moving abroad for a longer period of time.
The ONS also says at least 4.8 million British-born people were living abroad in 2024, based on United Nations data.
This raises a very practical question for many homeowners: what happens to the mortgage?
For some, the UK property is rented out while they live abroad. For others, it becomes a source of equity to help with a new home abroad. But arranging financing as an expat is not always as simple as proving that you earn enough.
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A UK-based borrower is typically assessed based on income, credit history, deposit, property value and monthly fees. These points are still important for expats, but lenders often go further.
They may ask where the income is earned, what currency it is paid in, where the applicant is tax resident and where he/she is currently based. They can also check how long the borrower has been abroad and whether there are plans to return to Britain.
This means that two borrowers can earn the same salary and still face very different outcomes. One person may have a good choice of lenders, while another may conclude that several lenders will not consider the case at all.
The reason for this is not always income, but may simply be related to the country involved.
Some lenders are comfortable with applicants based in places such as Dubai, Singapore, Hong Kong, Australia or parts of Europe. Others are more cautious, depending on location, currency, employment situation and local regulations.
That is why the first question should not be: ‘how much can I borrow?’ It should be, “Which lenders are likely to accept my situation?”
Permission for rental is not always a long-term solution
A problem that we encounter more and more often is permission to rent. A homeowner moves abroad and asks the bank for permission to rent out his house in Britain.
The bank agrees, meaning the property can be rented out while the borrower retains the existing home mortgage.
That can work in the short term, but the problem often arises when the current fixed interest rate expires. Some major banks are happy to authorize a rental for a certain period, but once the deal expires they may not allow the borrower to switch to a new product because he or she is no longer a resident of Great Britain.
This could leave the borrower stuck and possibly moved to a higher standard variable rate, or have to refinance their loan with another lender willing to do business with expat borrowers looking to rent out their loan.
That is why it is so important to check the final position with the existing lender before relying on permission to rent.
A real example: moving from Essex to Dubai
We are currently working with a client who moved to Dubai with his family about nine months ago after being offered a job with a big four accounting firm.
He still owns his former home in Essex, and the property is worth just under £1 million and is currently mortgaged to a major bank. When he moved abroad, the bank gave permission for rental.
His current mortgage agreement expires at the end of October. He now wants to move the property to a buy-to-let mortgage and release around £300,000 after paying off the existing residential mortgage.
The plan is to use that money to purchase a family home in the Middle East. On paper this looks good, as the property has a high value and the client has a good job. There is also a clear reason to raise the money, but that doesn’t mean every lender will say yes.
The lender will look at the property in the UK, the likely rental price, the amount of equity, the customer’s income, the fact that they are paid abroad, the currency, the country they live in and the purpose of the additional loan.
In this scenario, a standard route via the main street may not be possible. This is exactly where expat financing needs to be placed with lenders who understand the full complexity of the matter.
Looking for expat mortgage options? What to do now…
Expat financing is not just a normal mortgage with a different address, as where you live and where you earn can change the lenders available to you. This includes the currency, type of job, tax position and time spent outside Britain.
For borrowers, this means that the right advice in the beginning can save a lot of time and stress afterwards.
If your UK mortgage deal is coming to an end, or you want to release the equity in a UK property while living abroad, don’t assume that your current bank can help you just because it has approved the rental.
Check the position early and understand which lenders are likely to accept your country, income and plans. Then build the application around these facts.
For many expats, the answer is still yes. But the route to that yes must be chosen with care.
Hiten Ganatra, director of Visionary finance