Finance

Does France Have Credit Scores Like the UK? What Actually Happens When You Move Abroad

Moving to France from the UK, you’re probably thinking about the food, the weather – maybe even the tax situation. But there’s also credit that you have to think about. In the UK, it’s all about credit scores. Credit bureaus and endless three-digit numbers shape your chances of getting a mortgage or a loan.

So, it’s totally normal to wonder: does France have credit scores in the same way, and will your credit history from the UK actually mean anything once you set foot in Paris or Nice? Let’s break it down:

Quick Overview

First off, the concept of a “credit score” as we know it in Britain – those numbers from Experian, Equifax, and TransUnion – doesn’t quite translate to France. It’s not that they don’t care about your financial history; they just look at it differently.

How Do French Lenders Assess Borrowers Without Credit Scores?

You might be surprised to learn that France doesn’t have a universal, three-digit credit scoring system that follows you everywhere you go. French financial institutions, whether you’re applying for a personal loan or even just a mobile phone contract, do take your financial behaviour into account, but not in the same way as in the UK or the U.S.

Instead, their approach to creditworthiness focuses more on your:

Recent financial activity
Stability
Ability to repay

So, instead of plugging your details into a database to spit out a number, banks will ask you for things like your last three months of bank statements or your tax returns. In many cases, they’ll want a peek at your employment contract.

This process is, admittedly, a bit more manual and sometimes feels old-fashioned, but it’s just how they do it. Your “credit rating” in France becomes more of a personal profile, constructed from actual documents, rather than some algorithmic calculation.

Who Oversees Credit Risk in France?

Unlike the UK, where private credit bureaus keep score, in France, the Banque de France holds a lot of the cards when it comes to credit risk.

The Banque de France

They manage national registers, but these aren’t credit scoring bureaus in the Fair Isaac Corporation sense. Instead, they keep track of people who’ve:

Defaulted on loans
Had cheques bounce
Filed for bankruptcy

These negative remarks are stored in the Fichier Central des Chèques (FCC) or the Fichier des Incidents de remboursement des Crédits aux Particuliers (FICP).

So, if you’ve had issues in France – maybe unpaid debt or bounced direct debits – your name might end up in these files. That’s really the closest France gets to the idea of “bad credit.”

If you’ve kept your financial nose clean, though, there’s no equivalent to a Bureau Krediet Registratie (BKR) or the UK’s credit bureaus constantly tracking every bill payment. We often see this difference catch expats off guard, especially if you’re used to building a good credit score just by paying your mobile bill on time.

How Does France’s Approach Compare to Other Countries?

It’s not just the UK and France that differ. Across different countries in Europe and beyond, the approach to credit risk and borrowers’ creditworthiness varies a lot. Many countries rely on credit bureaus to centralise credit applications and defaults, whereas others, like France, take a more fragmented or state-led approach.

For example:

The Dutch have the BKR
Germany has Schufa
The U.S. famously uses the Fair Isaac Corporation’s FICO score
In the UK, we have those familiar credit reference agencies

If you’re curious about European attitudes to credit, the European Banking Authority provides some handy insights into how credit risk and borrower information are handled differently from country to country. You can check out their recent reports here.

What Do Lenders Really Want to See in France?

If you’re making a move, here’s where the reality hits: your good credit in the UK doesn’t transfer automatically. Lenders in France typically aren’t really interested in your UK Experian score or a glowing credit file from Equifax.

They want proof that you’ve got:

A stable income
A manageable level of debt
Enough money in your account to handle repayments

They’re trying to work out your current financial situation rather than your entire credit history. For things like a mortgage or large credit applications, French banks will dig deep – they might ask you for details of any properties you own or even your family situation.

It’s a much more personal, document-heavy method, which means you should always keep your paperwork organised – especially when you first arrive.

Can You Build Good Credit in France?

It’s not all doom and gloom if you’re worried about starting from scratch! Even though France doesn’t use a credit scoring system in the same way as the UK, you can still build trust with lenders and financial institutions.

Solid Tips

What can you do to improve your credit score in France?

Make sure your accounts are in good order
Keep your debt levels low
Don’t miss repayments on any French loans or bills

Over time, your bank will see you as a “good” client, and that reputation will help you with future credit applications. Just don’t expect an official credit score to magically appear.

And if you ever do end up with negative remarks in the Banque de France’s records – say, you bounce a cheque or default on a loan – those will stick around for several years and make it difficult to get credit, so it’s worth avoiding at all costs.

What If You’re a UK Expat With No French Credit History?

This is the tricky bit for many expats. You arrive, full of plans, only to discover that your UK credit rating isn’t recognised at all. You’re starting from zero, which can feel unfair, especially if you always kept things in order back home.

The good news is, many French banks and lenders understand this problem, so it’s worth explaining your situation and being upfront about your financial background.

Some international banks, especially those with branches in both countries, can be more flexible. They might consider your UK financial history as part of the picture. Still, the process will usually involve a lot of paperwork and personal meetings – France loves an appointment at the bank.

If you’re worried about practical steps, the Banque de France has information in English that can help you navigate the local system. It’s worth checking out their resources on opening an account and applying for credit as a newcomer.

How Upscore Can Help

If you want to make life easier as you move abroad and prove your creditworthiness wherever you land, consider signing up for Upscore’s Finance Passport! It lets you present your international credit data to lenders, which is handy if you want to avoid awkward moments in the bank manager’s office.

How is Credit Score Determined in the UK? + Tips to Improve It

If you’re planning to move abroad or simply want to tidy up your finances here at home, knowing how your credit score is determined – and more importantly, how to improve it – is definitely a smart move!

Your credit score is just a number, but it’s a reflection of your financial behaviour, which makes it a pretty key part of your financial health. It affects everything from mobile phone contracts to mortgages, and if you’re relocating, your history here may influence how lenders view you overseas.

What Is Your Credit File, and How Does it Shape Your Credit Score?

Your credit file is basically a full record of:

Your past borrowing
Your use of credit
How you’ve handled bills and loans

The main credit reference agencies in the UK – Experian, Equifax, and TransUnion – collect data to build up this file. People often talk about their “credit score”, but the fact is, you actually have separate scores with each of the agencies because each one has its own system.

So, when you submit a credit application – for a credit card, for example -the lender may check your credit file via one or more of the agencies. The lender then uses their own criteria (plus the data in your file) to decide if you’re a good bet. So your credit score reflects how trustworthy you appear to a lender.

Which Factors Influence How Your Credit Score is Calculated?

There are a few things at play when your credit score is being calculated, so let’s explore some of these here:

Payment History (Pay Bills on Time)

This is absolutely critical. Missed payments or CCJs send big red flags to lenders.

Credit Accounts and Credit Utilisation

This includes:

The number of credit accounts you hold (cards, loans, etc.)
How long you’ve had them
Especially how much of your available credit you’re using

For example, if you’ve got a credit card with a limit of £2,000 and you’re regularly using £1,800, that’s high use and it can hurt your score.

Credit History Length and Mix

The longer and more stable your borrowing history, the better, since it shows you’ve managed credit over time. Opening loads of new accounts can make you look riskier.

Public Records and Address Stability

If you’ve moved around a lot or have public records like bankruptcy or CCJs, your score will likely take a hit.

Errors in Your Credit Report

Mistakes happen! One survey found that 29% of UK adults who checked their credit report had errors on it.

Having all of these on your side helps you secure a good credit score; neglecting these things can land you with a low credit score, which can restrict your options.

What Are the Average Credit Scores and Why Do They Vary?

Since each agency uses a different scale, you’ll find different “average” numbers depending on who you ask.

The average 2024 figure for Experian was 797 (out of 999).
Equifax’s average is around 644 (out of 1,000).
TransUnion reports an average of about 610 (out of 710) in recent data.

Age and location make a difference too: younger adults often have lower scores, simply because their credit history is shorter. Data shows, for example, that people aged 18‑25 may average around 447 in certain scoring models, but that rises to 839 for those aged 65+.

And there’s actually a bit of variation regionally, too: some parts of the UK have average scores in the 700s, others in the 800s.

What this tells you is two things: first, don’t panic if your agency’s number looks different from someone else’s; and second, focus less on the absolute number, more on the trend and the behaviour behind it.

Why Checking Your Credit Score Regularly Matters

You should check your credit score and credit file regularly (at least yearly, ideally more frequently) because:

If you spot errors on your credit report, you can request corrections, and those corrections can improve your score. Over nine million UK adults could have mistakes on their credit files.

Checking helps you spot identity fraud or unauthorised credit accounts.

Keeping an eye on things helps you understand what lenders see when they view your file, so you’re better prepared when you submit a credit application.

And to clear up a common worry we see a lot of people ask: checking your own credit score via a soft check doesn’t hurt your score. It’s the hard checks (by lenders) that can leave marks.

How to Improve Your Credit Score

If you’re either planning a move abroad or at least considering it, improving your credit score now will give you a head‑start!

Register on the Electoral Roll: It’s simple to do and helps confirm your address in the eyes of lenders.

Pay all Bills on Time: Set direct debits or reminders so you don’t miss payments – your payment history is the single most important factor.

Keep Your Credit Utilisation Low: Ideally, use less than 30% of your available credit. If you have a £1,000 limit, try to keep around £300 or less outstanding.

Don’t Apply for Lots of New Credit at Once: Each credit application is logged. Lenders may see multiple applications as a sign of financial stress, which can lower your score.

Check All Your Credit Reports with the Three Agencies: Since they each hold slightly different information, you’ll get the full picture only if you cover all three.

Consider Requesting a Higher Limit (Only If You Won’t Increase Spending): If your card issuer offers a higher limit and you don’t use more of it, your utilisation rate drops, which helps.

Keep Old Credit Accounts Open (If They Don’t Cost you Fees): Having long‑standing accounts shows a stable credit history.

You’ll likely see gradual improvement when you follow these steps consistently. Depending on how low your score was, it might take several months or even longer, but the effort definitely pays off: better credit scores often mean better interest rates and access to higher credit limits.

And if you’re moving abroad, having your UK financial history in good shape makes the transition easier!

Final Thoughts

Relocating or renting overseas? Simply want the peace of mind that your financial health is solid? Then building and maintaining a strong credit score here in the UK matters. You don’t have to be perfect here, just consistent.

How Upscore Can Help

If you want to make life even smoother when you move abroad, consider signing up for Upscore’s Finance Passport! It helps you carry your financial credentials in one place and present your stronger credit history when you need it abroad or at home.

Do You Pay Tax on ISA Interest in the UK? Is It Better Abroad?

In the UK, individual savings accounts keep interest and dividend income totally tax-free, but it gets a bit messier once you cross a border.

Unsure how the whole process works? We’ll be taking a look at ISAs in more detail, so you know whether your savings interest is still tax-free. We’ll also cover how the rules change if you plan on moving overseas, and whether you need to tweak your strategy before lift-off.

Why Are ISAs Tax-Free for UK Residents?

Nearly 15 million adults paid into ISA accounts in the 2023-24 tax year, which was a thirteen-year high according to HMRC’s latest Annual Savings Statistics. Those subscriptions flowed into:

Cash ISA
Stocks and shares ISA
Innovative Finance ISA
Lifetime ISA

We’re mainly seeing these new highs in people who pay into ISAs because they’re tax-free, which means every pound of interest earned stays yours. The ISA allowance for 2025-26 sits at £20,000 per adult in the same tax year, which means all taxpayers – from basic rate or higher rate to additional rate – can shelter far more than their personal savings allowance alone.

Under UK tax rules:

Cash ISAs shield savings interest completely.

Stocks & Shares ISAs protect dividend income and investment fund gains from income and capital gains tax.

So that double layer of tax benefits explains why ISAs are such a popular tool in many people’s long-term financial plans.

How Does the Personal Savings Allowance Fit In?

Outside an ISA, basic rate taxpayers still get a £1,000 personal savings allowance, while higher rate taxpayers have £500, and additional rate taxpayers get nothing.

If bank rates crash again, the PSA may be enough on its own. But when rates climb, interest spills past the PSA pretty quickly, so you’ll want an ISA or some other tax-efficient wrapper to keep your tax burden down.

What Happens to Your ISA When You Move Abroad?

Short answer: you keep the tax-free status in the UK, but you stop adding new money the moment you cease being a UK resident – unless you’re a Crown employee overseas or their civil partner.

Make sure you tell your provider as soon as you’ve moved. Fortunately, you can still withdraw money or switch from one cash ISA to stocks and shares if you fancy taking on more market risk.

Will Your New Country Tax the Interest?

That depends on local law and on any double-tax treaty between the UK and the country you land in. Two of the more common outcomes look like:

Country A Taxes Worldwide Income: Your ISA keeps its UK exemption, but the new country counts the interest earned.

Country B Exempts Foreign Savings Wrappers: Your ISA will be untouched at both ends.

Just make sure you check this out before you move, because treaties are different depending on the country.

If your new country taxes ISA growth, the levy often falls due on the dividend income or interest earned inside the wrapper – even though HMRC keeps its hands off. Filing an accurate tax return abroad stops fines later.

Is It Better to Close an ISA and Start Fresh Abroad?

Running the numbers helps a lot here. Compare:

Remaining UK-Based: You keep the UK tax benefits and exposure, but you may face foreign tax on earnings.

Selling Up: You free up some cash to open local accounts or investment funds, but you lose the long-term ISA shelter if you ever move back.

Remember, you cannot rebuild ISA allowance you’ve given up; the £20,000 limit resets each UK tax year only for residents. If you plan to return within a few years, keeping the wrapper is usually a better idea.

Do Cash Rates Beat ISA Rates Abroad?

UK banks still offer cash ISAs paying up to 4%, but expat savings accounts in, say, Dubai or the United States sometimes top that headline rate.

The comparison isn’t that straightforward:

Convert back to sterling
Factor in any withholding tax
Consider currency swings

Basic Rate Taxpayers

You already get £1,000 of UK savings income tax-free, so weigh whether a cash ISA’s rate actually justifies all the admin work once you move. If your new country taxes overseas interest, the ISA shelter still softens the blow compared with plain cash.

Higher Rate Taxpayers

Your PSA halves, so the ISA’s shield matters a lot more here. Just watch out for dividend cuts abroad: some jurisdictions withhold up to 35% before money reaches you.

Additional Rate Taxpayers

With zero PSA, every pound of savings interest outside an ISA or similar wrapper faces tax. Keeping your ISA alive allows you to compound your returns over a longer term.

Two-Step Checklist Before You Board the Plane

Tell Your Provider: Hand over your new address and confirm you’ll be non-resident.

Review Local Tax Advice: One session with a cross-border specialist beats years of fretting and surprise bills.

More Tips

Got a better idea of how these ISAs work now? Let’s go through a few final things:

Do You Ever Pay Capital Gains Tax on ISA Assets?

No, provided the investments stay inside the wrapper. Sell shares, switch funds, rebalance each quarter – capital gains tax never applies within the ISA walls, regardless of where you live. Move the assets out, though, and normal rates follow you around the globe.

Can You Open New ISAs While Abroad?

Only if you return and regain UK residency status, or meet that narrow Crown-employment exception we mentioned before. Until then, focus on foreign wrappers your new home does allow, and remember you’ve still got that ISA bedrock if you come back later.

Is It Worth Combining ISAs Before You Go?

Merging older, dusty ISA accounts into one provider definitely makes life easier when you’re dealing with international paperwork. Providers that offer all the main ISA – cash ISAs, stocks and shares, lifetime ISA – options under one roof just make things easier to manage.

How Upscore Can Help

Upscore’s Finance Passport helps you organise all your financial documents and makes it easy to secure a mortgage in a foreign country.

House Loan Interest Rates UK: Worth the Loan?

Fancy locking down a place in the UK? Maybe as a base, maybe as an investment. Either way, with the current state of mortgage interest rates in 2025, you’ve got to ask yourself whether it’s actually worth the loan.

Perhaps you should forget it and make a move to an expat community in Italy or Australia? Let’s see what’s happening, using the latest data and a few examples, throughout this article!

What Are the Current Mortgage Interest Rates in 2025?

The Bank of England trimmed the base rate to 4% in August 2025 after a string of small cuts earlier in the year, so that’s definitely eased pressure on new borrowers – potentially yourself.

Average mortgage rates on brand-new secured loans sat at 4.26% in August, down from 4.47% in May.

On the high street, best-buy tables change weekly. If we look at the tail-end of September, for example, mortgage brokers highlighted:

Two-Year Fixed Rate Mortgage at 3.64% (60% loan-to-value LTV)

Five-Year Tracker Mortgage around 4.6% with the same LTV cap.

Remember, those headline numbers don’t include things like valuation costs or even any cashback perks that could sweeten (or complicate) the deal, so keep those in mind, too!

Why Do Rates Differ So Much?

Loan Amount and LTV: A 60% LTV deserves lower pricing than a 90% LTV because the risk of loss is smaller for mortgage lenders.

Fixed Rate Period Length: A two-year fixed often prices lower than a five-year fixed because the lender carries less rate-risk.

Credit Profile: The stronger your score, the more lenders will trust you with better mortgage deals.

Which Type of UK Mortgage Should You Choose?

Depending on your specific goals, you’ll get joy out of some mortgages more than others, so let’s break those down:

Is a Fixed Rate Mortgage Helpful If You Live Abroad?

Many UK expats choose a one-year fixed or five-year fixed product before they fly out. That’s because most people like knowing the exact monthly payments they have to make in sterling, which then makes budgeting in another currency easier.

The catch is the early repayment charges – typically 1-5% of the mortgage balance – if you clear the loan before the fixed rate period ends.

What About a Tracker Mortgage Tied to the Bank Rate?

A tracker mortgage follows the Bank of England base rate plus a set margin. With the base rate at 4% today, like we covered earlier, a tracker at “Base + 0.6” means it’ll be around 4.6%.

So, you’ll immediately see the benefit when rates fall, but you also pay interest at a higher level if inflation rears up. Fortunately, there’s usually no exit fee after the initial interest rate period, which makes it more attractive if you might sell up quickly.

Where Does a Variable Rate Mortgage Fit?

A variable rate mortgage – often the lender’s standard variable rate (SVR) – moves whenever the bank decides. SVRs currently hover above 6%, so you’d only sit on one temporarily, perhaps between fixed deals or while sorting paperwork.

How Do UK Rates Compare to European Hotspots?

Portugal: Average fixed rate 3.307% (Banco de Portugal, August 2025)

Spain: Average fixed rate 2.97% (Banco de España, August 2025)

The gap has narrowed, but UK rates are definitely still higher than the euro-zone average because sterling funding costs sit above Euribor right now. That said, transaction taxes abroad – think Portugal’s IMT or Spain’s ITP – are often a lot heavier than British stamp duty at modest price bands, so make sure you weigh the total cost instead of just the headline.

Does Taking a UK Loan Still Make Sense If You Plan to Let the Property?

A standard residential mortgage usually forbids long-term letting without consent. Once you leave for twelve months or more, most banks insist on a buy-to-let product or a “consent-to-let” fee.

It varies a bit depending on which lender you go to, but buy-to-let rates are usually roughly 0.75 percentage points above similar residential loans and require at least 25% equity.

Checklist before you rent out:

Confirm with the lender whether your current mortgage allows letting.

Factor agent fees and a 4-week void each year into cash flow.

Keep a buffer equal to three months of mortgage payments for repairs.

What Hidden Costs Could Sink the Deal?

Product Fees: £999 is standard on many headline mortgage deals – fee-free versions usually come at a higher rate.

Legal and Valuation: Budget £1,500-£2,000.

Buildings Insurance: This is usually compulsory for completion (premiums vary by postcode).

Currency Spread: Transferring rent or proceeds to and from different countries can cost 0.5-1% via banks.

What Happens If Rates Fall Further?

You can remortgage when the fixed rate period ends or pay an early exit fee sooner. Lenders offer “switch and fix” products where they book today’s rate up to six months before completion.

We’d suggest that you keep an eye on the Bank of England’s meeting calendar – decisions here are updated roughly every six weeks.

How to Strengthen Your Mortgage Application From Overseas

Thinking about making the move overseas and securing a mortgage?

Keep UK credit cards active and paid on time to maintain your score.

Use a UK address for electoral roll registration if possible.

Gather proof of foreign income: contract, payslips, tax returns – translated and notarised if required.

Many mainstream banks shy away from expat cases, but our team at Upscore can connect you with specialist local lenders that cater to expats – anywhere from France to the UAE – at no charge! We earn a fee from the lender if you take a loan out with them, so our platform doesn’t cost you a penny.

Is Overpaying a Good Idea?

If your deal allows 10% overpayment annually without penalties, knocking off even £200 a month shaves years off the term and slashes total interest. Just make sure you check that you won’t trigger early repayment charges.

Final Take: Worth It or Walk Away?

A UK house loan can very much still be financially sound if you:

Lock a competitive fixed rate
Plan for rental gaps
Hold a contingency fund

Average mortgage rates are lower than they were last year, and if you aim for a safe loan-to-value (LTV) of 60%, a sub-4% headline is definitely still achievable!

How Upscore Can Help

Want a single dashboard that you can compile all your finances in? Upscore’s Finance Passport makes it easy to apply for mortgages wherever you’re based.

What is a House Loan Guarantor and Who Can Be One?

Looking for support or trying to help someone climb the UK property ladder? One route is to step in as a home loan guarantor. This is where you offer your own financial strength so a loved one can secure a mortgage they’d otherwise miss.

The idea sounds generous – and it is – but the fine print also matters here, because you become legally responsible for the debt if the primary borrower defaults. So, we’ve put together a guide to show you how the whole process works!

How Does a Guarantor Loan Differ From a Normal Mortgage?

In a standard mortgage, you borrow money and take the credit-score hits or boosts alone. A guarantor loan, on the other hand, adds a second signature – it’s usually from a friend or family member with a good credit score and steady income.

Lenders run a full credit check on both parties. If the borrower keeps up with loan repayment, everyone’s happy. If the borrower falls behind, the guarantor then has to cover the shortfall – or, in a worst-case scenario, settle the debt in full.

As you can imagine, that’s the kind of obligation that can outlive friendships, so you definitely need to know what you’re getting into if you opt to become someone’s guarantor.

Some of the main reasons lenders invite guarantors are:

Low Credit Score: First-time buyers or returnees with thin files might struggle to pass the strict affordability test.

Limited Credit History: Young adults or Brits who’ve spent years abroad have fairly patchy or limited UK data – even if they earned well overseas.

High Loan-to-Value: A guarantor reassures the bank when the buyer has a small deposit and the loan sits at 90-100% of the purchase price.

According to the Government’s Mortgage Guarantee Scheme, more than 53,000 high-LTV mortgages were completed between April 2021 and December 2024, with an average property value of £211,616.

Nearly 86% of those borrowers were first-timers, which shows you how important security mechanisms like guarantors are when cash deposits are tight.

Who Can Act as a Mortgage Guarantor?

Lenders set slightly different rules, but most want someone aged 21-75 who lives – or at least pays tax – in the UK and shows financial stability through payslips or business accounts.

Some banks will accept a guarantor who already owns property abroad, provided they keep separate bank accounts for UK and overseas funds.

Some of the key traits lenders need to confirm are:

Good credit history – no missed payments or insolvencies

Proof of surplus income after personal commitments

Willingness to obtain independent legal advice before signing

A guarantor can be anyone from a parent or sibling to a long-term partner or close friend. But most lenders still prefer blood relatives, because courts view family guarantees as less likely to involve coercion.

What Does the Guarantor Do for Your Own Finances?

Standing as a financial guarantor locks part of your borrowing power. Mortgage brokers estimate that around 60-70% of your pledged liability counts against your own affordability tests.

So that means that you might find it harder to remortgage your own flat in Edinburgh or to finance a renovation on, say, a coastal house in Portugal. And if things go badly and you must pay arrears, that’s a financial burden that can stretch years, which not only dents your savings but also harms your credit rating.

The Office for National Statistics puts the average UK house price at £270,000 as of July 2025, which is up 2.8% year-on-year. Covering even a few months of payments on a loan that size can sting!

Can Multiple People Guarantee One Mortgage?

Some lenders allow “joint borrower, sole proprietor” structures, where income from two guarantors – say, both parents – helps a child qualify, but the parents avoid the second-home stamp duty surcharge by not appearing on title deeds.

Other lenders cap the arrangement at one mortgage guarantor, so it’s way easier for them to streamline enforcement if they have to. As such, you should always ask how many signatures a given product accepts and whether a future deed-transfer fee applies if you plan to exit the guarantee.

What Happens if the Primary Borrower Defaults?

If the borrower misses a payment, the bank first chases them. And if the arrears grow even more, the lender notifies you in writing. From there:

You can pay the overdue sum directly, which preserves the borrower’s credit report.

Fail to pay, and the lender can instruct solicitors and apply late-payment fees. Eventually, they’ll just repossess the property altogether.

Any shortfall after the sale lands on you, plus legal costs. That liability remains enforceable abroad if the bank wins a UK judgment and seeks recognition in your new country.

So the guarantee is a lot more than just moral support here. It’s a legal promise that follows you, even if you relocate to Spain or the UAE.

Does a Guarantor Loan Help Borrowers With Limited Credit History?

Yes, provided everyone behaves. Timely payments build a good credit history for the borrower, and they usually have the option – once equity rises or income grows – to remortgage without a guarantor.

That way, the guarantor can exit, which frees some of their own borrowing capacity. But on the other hand, missed payments can hurt both parties – lenders file defaults on each credit rating, and removing a negative marker can take six years!

How Do Guarantor Mortgages Compare to Other Routes Up the Property Ladder?

Britain’s high house-price-to-income ratio means you’ve got to be quite creative. So, besides guarantor mortgages, buyers consider:

Joint Mortgages: Where you pool two incomes with shared ownership.

Shared Ownership Schemes: This is when you buy 25-75% and pay rent on the rest.

Lifetime ISAs: Gathering a government bonus toward deposits.

Each of these comes with separate fees and eligibility limits, as you might expect. A guarantor route is handy for graduates who have strong earning potential but pretty slim savings right now.

It also fits emigrating professionals who keep UK ties and trust family to back them, since they know they can step in from abroad if required. On the other hand, it doesn’t suit someone whose own job is unstable.

What Legal Documents Will You Sign?

Expect at least three forms:

Guarantee and Indemnity Deed: Your binding promise.

Independent Legal Advice Certificate: Proof that a solicitor explained the financial risks to you.

Deed of Priority (Sometimes): Sets claim order if there are multiple charges.

Also, solicitor fees can vary quite a bit, so it’s worth budgeting £300-£600 here.

How Upscore Can Help

Upscore’s Finance Passport keeps all your financial obligations in one dashboard. And if you want to move to a foreign country, it lets you use your UK credit score to secure a mortgage overseas!

Is it Better to Overpay a Mortgage or Save?

You’ve accepted a job in Portugal or Spain, and now you’re looking at two buttons in your online banking. One says “make mortgage overpayments”, the other “top-up savings account”. That single click will shape how quickly you wipe out mortgage debt sooner and how solid your cash buffer looks once your relocation bills land.

On one hand, overpayments are going to shrink the balance and reduce interest payments. It could see you being mortgage-free sooner, so it’s hard to argue against that.

But on the other hand, having more savings means you’ve got more liquidity handy for unexpected expenses in the new country.

This all hinges on your monthly budget. If your mortgage interest rate is higher than your best after-tax savings rate, every pound you throw at the loan earns more than leaving it in cash.

But liquidity is obviously vital when you might need to book emergency flights or cover a rental deposit. Ideally, you want to keep enough spare cash accessible while also pushing the mortgage ahead, so let’s look at how you do that.

How Do Current UK Mortgage and Savings Rates Compare?

The Bank of England base currently sits at 4%. And average two-year fixes at 75% loan-to-value are about 4.81% (five-year fixes are around 5.03%). We’re seeing the average easy-access savings rate at roughly 3.46% right now, even though the top rates you’ll see advertised hit around 4.8%.

If we do the maths on that, overpaying beats stashing cash by about a percentage point, and the “return” is risk-free because it comes from interest you never pay.

What Extra Factors Shape the Choice?

Early Repayment Charge: Many fixed deals let you pay up to 10% extra before a fee kicks in.

Tax on Savings Interest: Basic-rate taxpayers get a £1,000 allowance. Higher-rate payers get £500.

Inflation Outlook: If CPI is higher than your mortgage interest rate, the money you owe on the mortgage essentially becomes “cheaper” because inflation eats away at the value of money.

Currency Shifts: Future earnings in euros or dollars may complicate whatever obligations you have in pounds.

Will Overpaying Really Pay Off Your Mortgage Sooner?

Let’s say you took a £200,000 loan at 4.8% over twenty-five years. Add an extra monthly payment of £200 by raising your monthly direct debit and nearly four years fall away – that saves about £23,000 in interest.

Then another 18 months vanish if you drop in a £10,000 lump sum payment early. Even a modest extra monthly payment chips away at that loan.

But it’s different for borrowers on sub-2% fixes – a top savings rate might now out-earn their loan cost. If that’s you, you’ll want to hold cash until the fix ends, or just get more competitive mortgage rates when you remortgage.

Could an Offset Mortgage Give You More Flexibility and Speed?

Your savings are linked to your loan with an offset mortgage, so you only pay interest on the difference between the two. And you can tap the money whenever life abroad demands it, which can obviously be helpful when you’re moving and have unexpected expenses.

But every day the balance sits there, you effectively “earn” your mortgage rate tax-free. These deals used to carry chunky premiums, but now they’re within about 0.2% of mainstream fixes, so that’s definitely worth looking at.

When is Saving Better Than Just Clearing Your Debt?

Emergency Fund First: Aim for at least three months of living expenses in accessible cash before you make any aggressive overpayments.

Penalty Zones: If an early repayment charge would eat the gain, just stash the cash you were going to use until the window opens.

Ultra-Low Legacy Rates: If your loan is under 2%, you’re usually better off saving if you look at the maths.

Near-Term Commitments: Anything from shipping and visas to paying for a second property abroad could require fast access to funds.

How Can You Build a Decision Framework?

Map the Monthly Budget: Log your mortgage monthly amount and any other essential outgoings you have.

Compare Rates: Put your net savings rate beside your mortgage interest rate.

Read the Mortgage Agreement: Note your overpayment limits and if there are any early repayment charges.

Match Choices to Financial Goals: Maybe you want to be mortgage-free before retirement or have the freedom to move again.

Allocate Spare Cash: Emergency fund first, then penalty-free overpayments. Then you can think about investing or saving.

Your Quick Recap Before You Pack

Your main aim here is just to save money over the life of the loan. So track your mortgage repayments each quarter and see how they compare with similar borrowers – if your monthly repayments feel a bit too steep, you can remortgage when your fix ends.

If your mortgage rate tops your savings rate and you have a buffer, overpay because you’ll cut interest and clear the loan faster.

If the penalties for early repayment are a bit high or you lack spare cash, prioritise saving, then overpay within limits.

Should I Bring in a Financial Advisor?

DIY tools are useful, but a regulated financial advisor can stress-test your plan under a few different multiple-rate scenarios once you live overseas.

For example, you could learn that delaying overpayments for twelve months in favour of a higher-yield bond could still pay off your mortgage on schedule, but you’d also leave a larger emergency pot for school fees abroad.

What Counts as Extra Money and How Can It Help?

Could be many things:

Annual bonus
Overtime
Airbnb side income
Tax refund
Inheritance money

You can put any of that extra money into a scheduled lump sum, or just drip-feed it through an extra monthly payment. Either way, try to be consistent here: tell your bank to put any windfalls directly to the mortgage or savings goal the day that they land so you don’t inevitably end up wasting it on something frivolous.

Do Biweekly Payments Work?

A strategy you could use here is to convert the standard 12 monthly repayments into 26 half-payments. So, because most years have more than four weeks per month, the schedule technically sneaks in the equivalent of a thirteenth full payment!

On a £200,000 loan at today’s average mortgage interest rate, biweekly payments would basically be shaving roughly two years off the term without being a massive strain on your cash flow. That routine alone can see you mortgage faster, even before bigger overpayments arrive.

Just keep in mind that you’ll want to keep your mortgage provider in the loop if you plan to change payment frequency – they have to record the biweekly payments correctly so they reduce the balance rather than sit in suspense.

How Upscore Can Help

Upscore’s Finance Passport helps you gather all your mortgage documents and credit data into one shareable file to show lenders!

How to Open a Mortgage Savings Account Abroad

Thinking about moving from the UK to a new country? Got your eye on somewhere sunny in Spain, or want to go out of Europe entirely to the UAE? Well, you’re definitely right to be curious about your finances, regardless of where you’re planning to go.

First step there means re-thinking how you’ll finance a future home purchase. There’s a good amount of paperwork involved with moving countries, but instead of waiting until you land, you can build a dedicated savings account now – one aimed squarely at a down payment fund.

Once you’ve started that habit of saving money, you’ll be protecting that cash from impulse buys, which are definitely common when entering a new country!

You’ll also be keeping interest payments visible and showing lenders on both sides of the border that you can be trusted, so we’ll be breaking down how to do it throughout this article.

Why Open a Mortgage Savings Account in the First Place?

The median sales price for a home in England reached £290,000 in the 2024 financial year, according to the Office for National Statistics. Expat hotspots such as Portugal and Australia post even higher figures, so starting early definitely matters here.

Meanwhile, the Bank of England base rate sits at 4% as of September 2025 – so that’s proof that interest rates can rise and fall.

So what’s the issue here? Basically, leaving your future deposit in a checking account that earns next to nothing means you’ll just be watching inflation eat away at your hard-earned pounds, so that’s why people open a mortgage savings account instead!

Which Savings Account Options Suit UK Movers?

Moving to Australia, or maybe Italy? See which savings account you’re better off with wherever you’re moving to:

What Qualifies as a Mortgage Savings Account Abroad?

Any product that safeguards capital and offers a fair annual percentage yield will do the job. You also want something that provides clear statements you can present during account opening. So, your options here could be:

A credit union share account tied to your new employer
A standard savings account program from a multinational bank
A high-yield savings account platform linked to your UK current account
A government scheme for first-time homebuyers in your destination

Just make sure you compare minimum opening deposit requirements and local depositor insurance before you click apply. And also see if there are any early withdrawal rules that could pinch you later!

Is My Deposit Protected?

Many countries copy the UK’s Financial Services Compensation Scheme. In the United States, for example, coverage comes from the Federal Deposit Insurance Corporation. In Australia, it’s the Financial Claims Scheme.

You can spread funds once the balance tops the cap a lot easier when you know the local figure.

How Do I Open the Account Step-by-Step?

Pick a bank that offers remote ID checks for non-residents.

Upload a passport scan and proof of UK address. You’ll likely also need some recent credit card statements handy.

Seed the account via direct deposit from your UK current account.

Schedule automatic transfers each payday so the urge to save money is now just part of your routine.

The good news here is that most applications wrap up within a week. But if a branch signature is still required, just slot a visit into an early scouting trip – not ideal if flights are expensive, but you can’t always get around this.

How Large Should My Monthly Savings Goal Be?

Start with the purchase price you expect and subtract any tax refunds or bonuses earmarked for housing. Then, divide by the months left before you hope to buy.

For example, A €400,000 flat in France with a 20% deposit means saving €80,000. Spread over four years, that sets a monthly savings goal of roughly €1,670 before interest. Naturally, you want a bit of breathing room in there for closing costs and property taxes, so the future monthly payment feels comfortable.

If the target you end up with looks too steep, you can surely find some extra cash:

Trim subscriptions you don’t use much
Freelance on weekends – it’s way easier to save money by increasing your income rather than reducing expenses
Sell any unused electronics

Again, automatic transfers help here since they remove any temptation from the equation.

Are High-Yield Savings Accounts Worth It?

High-yield savings accounts show you rates that seem pretty irresistible at first, but a lot of these shrink after six months. Check details like:

Whether the annual percentage yield is variable
Whether early withdrawal forfeits interest
Whether currency conversion reduces your overall gain

If all the small print looks okay, there’s no harm in putting a slice of your deposit there, but keep the bulk in an insured core so rate swings don’t negatively impact your timetable.

Can Payment Assistance Programmes Boost My Fund?

The Federal Housing Administration in the U.S. popularised FHA loans that accept lower deposits but require private mortgage insurance until equity builds.

Some countries mirror that idea under different names. Also, veterans moving to US bases might even qualify for a VA loan.

And it’s not uncommon for local banks to also run payment assistance programs with sensible loan limits. Just make sure you read every clause before you rely on outside help.

What Hidden Costs Are There for Expats?

Besides visa fees, remember:

Currency conversions affect every transfer

Ongoing maintenance fees that affect your ability to save money

Notary charges during account opening

Penalties if you take money from the deposit before the scheduled time

Check the fee schedule twice – once before you apply, again after the first statement lands.

How Do I Stay on Track Without Constant Spreadsheets?

Set a quarterly reminder to review your personal finance dashboard:

Make sure the balances match your notes.

Confirm the account sits under local insurance caps.

Adjust automatic transfers if pay rises or rent drops.

Re-check loan limits and interest rates so your target stays realistic.

Common Issues to Avoid

Chasing the kind of teaser yields you get from high-yield savings accounts that crash after a quarter

Forgetting exchange-rate risk until the pound slides

Skipping an emergency fund and dipping into the deposit when the boiler fails

Ignoring closing costs until the solicitor’s invoice arrives

Final Checklist Before You Sign a Contract Abroad

Reconfirm the purchase price, deposit size, and loan limits.

Lock a forward contract if completion looms.

Re-work the future monthly payment so your lifestyle spending remains realistic.

Ready to Open Yours?

A well-chosen mortgage savings account abroad means you’ve got an actionable plan rather than just a pipe dream. You’ll save for a house at a pace that keeps your lifestyle enjoyable when you start funnelling direct deposit cash into an insured pot, monitoring interest rates.

How Upscore Can Help

Upscore’s Finance Passport lets you use your credit score from the UK to secure a mortgage overseas!

What is the First-Time Home Buyer Government Grant in the UK? | Upscore

It’s no easy feat getting a foot on the property ladder in the UK, especially as you try to get approved for a mortgage with a down payment. But there’s good news for first-time buyers!

The UK government has partially made the lives of first-time home buyers easier. They’ve introduced first-time home buyer schemes that apply to some UK homes, and the main one to consider is the First Homes scheme. What makes this scheme an incentive is that it offers discounts on specific properties to UK residents.

There are still many challenges, even with the scheme. With housing affordability also through the roof, you might be looking for solutions or even considering moving abroad – an alternative way to achieve your dream. Here, we’ll break down what the First Homes scheme is and explain how you can become a homeowner more easily.

What is the First Homes Scheme?

Offering first-time buyers specific new homes at a discounted price, the First Homes scheme means that eligible first-time home buyers do not need to pay the property’s full market value. It’s designed to help you purchase new-build homes, though it also applies to some resale homes that were originally sold under the scheme.

Years of saving for a 20% deposit on a mortgage are a reality for many first-time home buyers – the median deposit for first-time buyers has tripled from £13,600 to £37,400 on average since 2006, according to the FCA, and, at the same time, the prices of properties are on the rise.

For instance, the average house prices in the UK have exceeded £256,000 since March 2021, according to Statista. But that’s where the First Home scheme can be partially useful if you qualify.

The scheme opens some doors for you, offering a 30% to 50% discount on eligible properties. So, as an example, a new-build home’s market value might be £250,000, but under the scheme and with its 30% discount, you could purchase it for £175,000.

How Does the First Homes Scheme Work?

The scheme’s discounted prices are key, but how does it work? The process generally starts by looking for a new home in your location, which you can do by checking out those that developers or estate agents advertise through the First Homes scheme.

There’s a catch in terms of the eligible property value – after the discount is applied, the price of new build home generally can’t be more than £250,000 (or greater than £420,000 if the home is located in London) according to the regulations.

Typically, an independent surveyor will establish the discounted purchase price to maintain fairness and account for the actual market value.

The scheme supports full ownership, so it’s unlike shared ownership because you own 100% of the property and don’t need to pay rent. In other words, what you own is the entire discounted price.

What are the Eligibility Requirements for the First Homes Scheme?

Aside from the eligible property value restrictions mentioned, specific local eligibility criteria and home eligibility criteria may determine who can receive the First Homes discount or who is a priority. Here are a few of the eligibility requirements for this scheme:

You have to be a first-time buyer, which applies even if you’re buying a property with others. So in this case, according to the UK government website, whoever applies with you must also be a first-time buyer.

You must be 18 years old or over.

Keep in mind that your joint household income when applying with others can’t exceed £80,000 annually before tax, or £90,000 before tax if the home is in London.

Key workers, individuals who live in the area, and those on lower incomes may count as priority buyers, and the local authority may aim to offer the First Homes discount to them first.

Caps on Income and Mortgage Eligibility Expectations

These caps on income apply to applicants applying on their own as well. So you are not eligible for this first-time buyer scheme if you earn more than £80,000 a year before tax (or £90,000 a year if the property you’re interested in is in London).

A different matter altogether, though, is that there are specific mortgage eligibility expectations with the First Homes discount. You need to be eligible or able to obtain a secure mortgage for at least 50% of the price of the home to qualify for the discount.

How Can I Apply for the First Homes Scheme?

If you’re moving toward buying your first home, and the First Home scheme aligns with your situation, you can apply for it by completing the steps below:

Apply for help by reaching out to the estate agent or property developer and letting them know you want to buy a home through the scheme.
Once they’ve checked you qualify, provide them with the details of a conveyancer.
The estate agent or property developer will forward your application to the local council.
If you’re interested in a new build, you need to pay the required reservation fee.
With the approval of the council established, contact your conveyancer and proceed to set up your mortgage.

Can You Use the First Homes Scheme to Buy a House Abroad?

Unfortunately, it’s not possible to use the First Homes scheme to buy a house abroad. The scheme is only based in England.

Yet, here’s the good news. There are other ways to purchase your first home abroad, one of which is to rely on UK services such as international banking for expat mortgages. One provider of such services is HSBC, but a UK expat bank account will be required.

The other way is to seek support from a foreign lender, and Upscore’s Finance Passport can help. It matches you with mortgage lenders abroad that align with your needs, whether you’re currently abroad or in the country you intend to live in.

The Upscore Finance Passport helps you check your eligibility, compare mortgage offers, and get the support of an agent until the completion date. This makes owning your dream home much more achievable.

How Upscore Can Help

If your goal is to purchase a property in the UK, the First Homes scheme might help, but you’ll still need to face many eligibility criteria and high housing costs. For this reason, moving abroad might be a better option, and signing up for Upscore’s Finance Passport is your key to becoming a homeowner in Spain, France, Portugal, Italy, the US, or other locations.

Navigating the world of mortgages is a smooth, convenient, fast, and personalised process with the Finance Passport. It ensures you can apply for your mortgage with overseas lenders remotely and get a dedicated agent for the mortgage application process.

Complete mortgage lender comparison easily. Sign up for the Upscore Finance Passport today!

How to Calculate UK Capital Gains Tax on Overseas Property

If you’re living in the UK and thinking about selling property overseas, the first question is almost always the same: Do I have to pay capital gains tax in the UK on it? The short answer is yes, usually.

HMRC looks at:

Your residence status
The type of property
The gain you’ve made

From there, they work out what portion belongs to the UK. The long answer takes more explaining, because overseas property sales can trigger tax both where the property sits and back home in Britain, which is why people quickly want to know about double taxation agreements and reliefs.

Do You Pay Capital Gains Tax on Overseas Property?

If you’re a UK resident and you sell an overseas asset, HMRC will want to know. That includes everything from second homes in Spain to rental flats in Dubai. The basic principle is straightforward: you’re taxed on your worldwide gains if you live in the UK. Non-residents have different rules, but if you’re reading this with a UK address, then the gains count.

That doesn’t mean you’ll be taxed twice without relief. Double taxation agreements step in to avoid that.

Say you sell in Portugal, where there’s local tax on the gain. If there’s a treaty, the UK recognises that tax and allows credit, so you don’t end up paying both countries in full. HMRC publishes the agreements, and you can check them online before you sell.

What Counts as a Taxable Gain?

To work out a taxable gain, you start with the sale price, deduct the costs (purchase price, improvements, selling fees), and then see what’s left. The gap between those two figures is your gain.

So it’s simple in concept but fiddly when you’re actually doing it because foreign exchange rates matter: HMRC wants figures converted into sterling at the correct rate, not whatever your bank showed on transfer day.

If you’ve owned the property for years, you’ll also want to dig up completion statements and any legal fees to keep your taxable gain as low as possible.

How Do Income Tax Bands Affect Your CGT Rate?

The rate you pay depends on your income tax band. For basic-rate taxpayers, capital gains tax on overseas property is normally 18% for residential property and 10% for most other assets.

If your gain pushes you into higher income brackets, the rate rises to 28% for residential property or 20% for others. That’s why planning the timing of a sale can matter!

If you already had a high-earning year, the property gain may bump your rate up, while selling in a lower income year keeps the percentage down.

What Reliefs are Available on Overseas Property?

One important relief is private residence relief. If the overseas home was genuinely your main residence for part of the time, that period may be exempt from capital gains tax liabilities. The rules are nuanced, especially since 2020 when lettings relief was cut back, but it’s still worth checking.

If you owned both a UK property and an overseas property, you could elect which was your main residence within two years of buying the second. If you never made that election, HMRC will just decide for you based on evidence.

There are also allowances that reduce what you pay. Everyone gets an annual exempt amount (in recent years this has been falling – for 2025 it’s £3,000, and due to drop further). You deduct this allowance from your taxable gain before applying tax rates. It’s obviously not a fortune, but every bit helps.

How Do You Report Overseas Property Gains?

Reporting is through your self-assessment tax return. You have to:

Complete the capital gains summary form
List the details
Submit online by 31 January after the tax year of the sale

Selling overseas assets can trigger the requirement if you don’t usually file a self-assessment. Don’t ignore it, because penalties for late reporting or payment add up fast. HMRC expects clear records:

Completion dates
Exchange rates
Cost bases
Evidence of any tax you paid abroad

Keep those documents organised, because they may be requested.

If your property is classed as a UK residential property (say you were still a UK resident but owned here), you have to report within 60 days of completion. That’s a tighter deadline, so know the difference. For overseas property sales, you still use the self-assessment route.

Example: Selling a Villa in Spain

Imagine you bought a Spanish villa for £150,000 equivalent in 2005, spent £20,000 on renovations, and sold it in 2023 for £300,000 equivalent. Your gain is £130,000. Deduct the annual exemption (say £6,000), which leaves £124,000 taxable gain.

If you’re in higher tax brackets, HMRC may charge 28% because it’s a property, which gives you a tax bill of around £34,720. If you paid Spanish tax on that gain, the UK will credit it under the double taxation agreement, so you don’t pay the full amount twice.

Can You Avoid Capital Gains Tax Legally?

There are ways to manage your exposure without breaking the law. For example, selling in a tax year where your income is lower or planning an ownership structure with a spouse can all help.

Some people use timing carefully: disposing of assets across different tax years spreads the gain and reduces the impact. Others ensure genuine residence in the property for periods to qualify for private residence relief. Avoiding capital gains tax doesn’t mean evading it; it means arranging your affairs so you don’t overpay.

What About UK Residents Moving Abroad?

If you’re moving overseas, the timing of your sale matters. Non-residents may avoid UK capital gains tax on some overseas assets after certain periods of non-residency, but HMRC has strict rules.

Becoming a non-resident for less than five years can result in your gains still being taxed when you return. This “temporary non-residence” rule catches people who thought a quick stint abroad would exempt them. Check residency status carefully before you sell.

Step-by-Step: How to Calculate UK Capital Gains Tax on Overseas Property

Work out the sale proceeds in sterling, using official exchange rates.
Deduct purchase cost, improvement costs, and selling costs.

Subtract your annual exempt allowance.

Add the gain to your income to see which income tax band you fall into.

Apply the correct capital gains tax rate (10%/20% or 18%/28%).

Factor in reliefs such as private residence relief if applicable.

If tax was paid abroad, apply the double taxation agreements for credit.

Complete the capital gains summary form as part of your self-assessment tax return.

Pay tax owed by the January deadline.

How Upscore Can Help

Planning an overseas move and want peace of mind about your finances? Upscore’s Finance Passport is a solid way to organise your documents and compare mortgages from multiple lenders – completely for free!

Which UK Banks Offer Overseas Mortgages? Best Overseas Mortgage Lenders

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!

About Upscore 10

Account & App 6

Advice 7

Buying Property Abroad 10