Buying a home abroad has always carried a certain pull. Lower property prices, or just the idea of a second base in the sun outside the UK – it’s tempting.
But if you’re a UK resident or expat considering an overseas property purchase, the first question usually isn’t about location. It’s about money. More specifically, which UK banks offer overseas mortgages, and how does the process actually work?
This isn’t the same as walking into your local branch in Manchester or Glasgow and applying for a standard UK mortgage. The paperwork is more complex, and the number of lenders willing to offer expat mortgages is much smaller.
That said, there are options if you know where to look and if you take time to line up the right mortgage broker who understands international mortgage services – our team at Upscore can show you how to do this!
Do UK Banks Actually Lend for Overseas Property Purchases?
Some do, but far fewer than you might expect. Most high street UK lenders focus almost entirely on UK property. Their products and risk assessments are built around the UK property market, so financing property overseas is outside their standard playbook.
That doesn’t mean you’re out of luck. A handful of banks in the UK still offer expat mortgages and international mortgage services for customers looking to buy overseas property.
The larger institutions with global footprints – HSBC or Barclays, for instance – are the most likely to lend. But even then, the options are limited by country and sometimes by your residency status.
You may also find that these banks are sometimes more open to discussing your plans to buy overseas property if you already have an existing mortgage with them.
Why are Overseas Mortgages Harder to Secure?
From the bank’s perspective, lending on property abroad is riskier. They can’t rely on their normal valuation networks since they may have to work with estate agents and surveyors in the debtor’s country, and legal frameworks vary widely. Enforcement of a mortgage default in Spain looks very different from one in France or Portugal.
Currency risk is another issue here. Exchange rate movements can affect affordability if your income is in pounds but the property is priced in euros.
Because of these risks, many high street banks have pulled back from offering overseas mortgage products.
Which UK Banks Offer Overseas Mortgages Right Now?
As of 2025, the list is short, but not empty:
HSBC Expat
Offers international mortgage services for buying property abroad, particularly if you hold an expat bank account. They have tailored products for popular destinations like France and Hong Kong.
Barclays International
Provides mortgages for property overseas, though mostly for higher-value homes or investment property in select markets.
Lloyds International
A similar model, offering overseas mortgage abroad products for certain countries.
Most other mainstream UK lenders have exited this space since they prefer to stick with standard UK mortgage lending. That means if you want to buy to let property abroad, you’ll often need a specialist broker to connect you with either a niche lender or a bank based in the country where you’re buying, which is where a platform like Upscore can be massively helpful!.
Should You Use a UK Mortgage Broker Fit In?
This is one of the biggest decisions. Using a UK lender can feel more comfortable – you’re dealing in English with UK regulation. And you might already be a customer. But you’ll be restricted in where you can buy.
Working with a local bank in your destination country often makes more sense, especially for everyday overseas purchases or if you plan to live in the property long term.
Local banks usually understand their property market better and can move faster with estate agents and legal checks. On the downside, you’ll need to meet their requirements, which may include residency or proof of local income.
How Does a Mortgage Broker Fit In?
For most people, especially first-time buyers abroad, a mortgage broker is essential. They can:
- Explain which UK banks offer overseas mortgages right now
- Introduce you to specialist lenders
- Flag costs you might miss
A specialist broker will also know the quirks of overseas property purchase laws, such as additional taxes in France or notary fees in Spain.
Keep in mind that brokers charge fees. In some cases, they’re paid by the lender, in others directly by you. Always clarify upfront, and don’t be afraid to shop around.
What’s Different About Overseas Mortgage Terms?
If you’re used to the UK mortgage products you see on comparison sites, expect a few surprises when looking at international mortgage services:
- Deposit requirements are usually higher. While a buy-to-let property in the UK might only need 25% down, an overseas mortgage abroad could demand 40%.
- Interest rates tend to be higher since there is extra risk.
- Currency matters, too – if your mortgage is in euros or dollars but your income is in pounds, you’ll need to factor in exchange rate swings.
Is it Better to Buy Overseas Property as an Investment or a Holiday Home?
The answer depends on your goals. Buying property abroad as an investment property – perhaps a flat in Berlin or a villa in Spain – can make financial sense if rental yields look strong. But be aware that managing tenants from abroad can be stressful.
If it’s a holiday home, you’ve got to think less about return on investment and more about lifestyle value. That’s where estate agents become key, not just for finding property but for navigating local rules and purchase costs.
What Happens If You Already Have an Existing Mortgage in the UK?
You can usually still apply for an overseas mortgage abroad, but your affordability will be judged against your current commitments. UK lenders don’t want to see you overstretched, and carrying an existing mortgage on a property in the UK reduces your available borrowing power.
This is another area where a specialist broker helps, because they can present your finances in the best light.
Are There Alternatives to Using UK Lenders?
Yes. Many UK residents who buy overseas property end up financing through:
Local Banks Abroad
These are often more competitive, especially if you can show local ties.
Specialist Lenders
Smaller firms that focus on overseas purchases. They may not be household names, but they offer expat mortgages as their core product.
Equity Release in the UK
This is where you remortgage your property in the UK to give you the funds you need to buy outright abroad. This avoids currency risk but uses your home as leverage.
How Upscore Can Help
If you’re thinking of applying for overseas mortgages, Upscore’s Finance Passport gives you a place to track your UK mortgage products while also presenting a clean snapshot for lenders!
