Guides · Financing
Can a non-resident get a mortgage in the United Kingdom?
Yes, and it is one of the advantages of the British market: you finance in sterling, at British rates, an asset that produces rent in sterling. The terms differ from a resident's. Typical loan-to-value for a non-resident sits between 60% and 75%, against 80% or more for a resident, and several lenders go no further than 65%. The large banks usually require a 30% deposit as a minimum and frequently 40% where the buyer lives abroad. The process is documentary rather than credit-driven: what decides it is not your solvency, it is how well you can evidence it from another country.
Why this is an advantage and not a formality
Worth saying first, because almost nobody frames it this way: being able to finance in sterling, at British rates, an asset that generates rent in sterling is one of the things a Latin American investor does not have in their own market.
- The cost of money. The average rate on new British buy-to-let mortgages stood at 4.71% in the first quarter of 2026, with five-year fixed offers below 4.3%. In Mexico the mortgage rate is around 11.5% and in Colombia the policy rate is at 12%. In Chile the comparison needs care, because mortgages are agreed in UF and that 4% is a real rate, not a nominal one.
- And the fixed term. The British market offers a five-year fix as an ordinary product, something that in several jurisdictions in the region does not exist with that depth.
Financing in the same currency you collect the rent in is not a technicality: it is the cheapest currency hedge there is, because it costs nothing.
The debt is in sterling, the income is in sterling and the asset is in sterling. What moves with the exchange rate is only the result measured in your own currency, and only on the slice of capital you put in, not on the whole value of the asset. That is why the decision to finance is a structural one and not only a question of interest rate, and we develop it below.
What loan-to-value you actually get
The non-resident mortgage market in the United Kingdom exists, is stable, and is served by two kinds of lender: international banks with an expat division, and specialist lenders. It is not a fringe market, but it is one with criteria of its own.
| Profile | Typical loan-to-value | Deposit |
|---|---|---|
| UK resident | 80% or more | 20% or less |
| British expat | 70% – 75% | 25% – 30% |
| Non-resident with no British connection | 60% – 70% | 30% – 40% |
| Specialist lenders, established portfolio | 60% – 65% | 35% – 40% |
Market ranges as at September 2026. They vary by lender, by profile and by asset type, and they move with the cycle. Check before calculating on them.
What the lender actually looks at
The property's rent, before your salary
On a British buy-to-let mortgage the main test is not your personal income but whether the property's expected rent covers the payment with headroom. The lender applies a coverage test at a notional interest rate above the one contracted, precisely to check the deal holds if rates rise. It is why an asset with low rent may not be financeable even where the buyer is highly solvent.
Your income, with a currency haircut
Lenders usually accept income in the major currencies, and where income is not in sterling they apply a haircut of between 10% and 25% to the sterling equivalent to cover exchange rate risk. Worth knowing before you calculate: your income counts for less than it is.
Several lenders also set a minimum income —in the tens of thousands of pounds a year— and some require having been UK resident at some point. That requirement is the one that filters out most Latin American buyers with no prior British connection, and it is the first thing to confirm before investing time.
The documentation, which is where the process falls down
Verifying a non-resident's income takes considerably more paper: tax returns from your country, bank statements, where applicable your company's accounts, all of it translated and frequently certified. It overlaps with the source of funds evidence the law firm will ask for, so it is worth preparing a single documentary pack that serves both.
What changes if a company is buying
Lending to a company is normal in British buy-to-let and there are lenders that specialise in it, but it is not the same: the lender panel is narrower, rates tend to be somewhat higher, and a personal guarantee from the shareholders is almost always required, so the company's limited liability does not extend to the loan. If on top of that the company is not British, the whole thing gets more complicated and the structure is best decided before talking to lenders, not after. We cover it in the structures guide.
The costs of financing
- Lender arrangement fee: usually a percentage of the loan, frequently addable to it.
- Valuation: instructed by the lender and paid by the buyer. Higher on atypical properties.
- Broker: may be paid by the lender, the client or both. See the intermediaries guide.
- Additional legal fees: the firm charges more where there is a lender, because it acts for them too.
The right order
The usual mistake is to reserve first and look for financing afterwards. In the United Kingdom that leaves the buyer with a deposit committed and a clock running. The sequence that works is the reverse:
- Confirm with a specialist broker whether your profile is financeable and at what loan-to-value, before looking at assets.
- Obtain a decision in principle from the lender.
- Prepare the complete documentary pack.
- Reserve, with the financing already under way.
And a note on timing: a non-resident mortgage takes longer than a domestic one, among other things because of the international checks. It is worth building that margin into the contract deadlines you negotiate.
Related questions
Sources
- Market guides on expat and non-resident mortgages in the United Kingdom, 2026.
- UK Finance — average rate on new buy-to-let mortgages, first quarter 2026. Comparative rates for Mexico, Colombia and Chile, 2026.
- Published criteria of lenders specialising in non-resident buyers.
What Acacias does with this
Acacias is not a credit intermediary and takes no payment from lenders. We introduce you to brokers who specialise in non-resident buyers, coordinate the financing timetable with the completion timetable, and prepare a single documentary pack that serves both the lender and the law firm.
Indicative market ranges, subject to change without notice. This is not financial advice nor a recommendation of any credit product. Acacias Capital Ltd is not authorised or regulated by the FCA and is not a credit intermediary. Your home or property may be repossessed if you do not keep up repayments on your mortgage.