Mortgages

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!

Sign Up for Upscore’s Finance Passport Today!

What is a Fixed Home Mortgage Rate in the UK?

You’ve probably heard the term quite a lot, but is this still something that makes you raise an eyebrow when you see it somewhere? A fixed home mortgage rate basically just keeps your interest unchanged for a set window, so your budget stops wobbling. 

The idea might feel a little bit old-fashioned, but it definitely makes your finances easier to manage since all your outgoings hold steady while you settle. Lenders call that window the fixed rate period and they print the start and end dates in the offer. 

You’re essentially swapping doubt for predictability – let’s break down how it works.

How Does a Fixed-Rate Mortgage Work in Practice?

A fixed-rate home loan does one big job for you: it trades some of the flexibility for certainty. You will see talk about home loan interest rates on every brochure, but the main promise here is steadiness, not noise. 

During the fixed term, you’ll be paying the same charge and making the same transfer, which definitely makes planning simpler. Most borrowers use principal and interest repayments so each payment covers the cost of borrowing and trims the debt. 

Some choose an interest-only period to keep the bill lighter, though the balance stays put until repayments shift to the standard setup.

The behind-the-scenes of how this all works is actually fairly simple. You start with a loan amount and a schedule that sets monthly repayments for the term. The lender then watches the loan to value ratio and adjusts pricing if the deposit is thin. 

It’s worth mentioning that some deals need lenders’ mortgage insurance (LMI) because the risk might be slightly higher for the lender if you don’t attach a significant enough deposit. The property type matters too because an investment property can be priced differently from a home you live in.

What Happens When My Fixed-Rate Mortgage Ends?

When the fixed period ends you then go to what’s known as a reversion deal. Most lenders move you to a variable interest rate unless you refix. If you want certainty again you can renew the fix. 

If you want more freedom, you can switch to a variable rate. Variable-rate home loans let you make changes easier and help when you plan to move or refinance your debt.

What Fees and Costs Should I Expect?

The numbers you might see getting advertised rarely tell the whole story, so look past the headline. The comparison rate helps here because it bundles the interest with standard charges. 

That said, you’ll still want to read the details. Watch for ongoing fees in the small print. Some products show monthly fees, but others actually fold them into the margin. 

How Do Overpayments Work?

You’ll also want to check the rules for additional repayments during the fixed window, and ask how an offset account works alongside a fixed leg, because features can be limited under a fix. 

We get that this might be a lot to think about for now, but doing a bit of the paperwork now will massively save you from confusion later on – also helping your plan stay on track.

The contract explains what happens if you sell or refinance early. Exit during a fix can trigger a break cost on a fixed rate loan because the lender locked in funding and unwinding that position may carry a charge. But this isn’t a punishment; it’s just how funding works when rates move after your start date. 

Your statement will show principal interest splits as the months go on. At first, your interest repayments are probably going to take a larger share just because the balance is bigger. Later, however, the principal slice grows. 

But remember that you can always make additional repayments within the product rules if you prefer a faster fall. You can split your mortgage into two parts which makes it easier to save up for one – one on a fixed rate and one on a variable rate – and then use the variable-rate side to park extra money in an offset account.

Is a Fixed-Rate Mortgage Better Than a Variable One?

If you want the payment to stay the same while you adjust to a new routine, a fixed interest rate can definitely be a good way to take the edge off. But if your pay will climb soon, or if your plans might change, a flexible option gives you room to move. 

The good news here is that you don’t have to choose a single path. A split home loan lets you divide the facility into fixed and variable portions so one slide holds steady and the other side is a bit more flexible. Many people use the flexible slice for an offset account while the fixed slice does all the heavy lifting on the debt.

Just make sure you shop carefully and ask a few simple questions, such as:

• What is the starting price on the fixed home loan?
• What happens on the day the fixed period ends?
• Are there monthly fees?
• Can you refix without a new valuation?
• Will the product allow an offset on the fixed side?

Also, sometimes you’ll spot a mention of an Australian credit licence on a lender’s global site or a partner page. That just means they’re licensed in Australia too – it doesn’t affect the UK rules you’re bound by. Always follow the UK disclosures and get advice based on local law.

Practical Notes and Small Traps

Your very first mortgage payment matters. We’d suggest picking a due date that matches when you get paid, so you’re not scrambling for cash at the last minute. It helps to keep a small cushion in your bank account, just in case.

Right after your loan starts, take a quick look at your balance. Mistakes don’t happen often, but a glance here and there means you’ll spot any odd charges before they become a problem.

And near the end of your fixed term, your lender will send a “what’s next” letter. Don’t ignore it! You’ll have options: 

• Stick with the same lender
• Lock in another fixed rate
• Switch to someone else if their deal looks better

Just remember, changing lenders can mean extra costs – like a property valuation or legal fees – so weigh those in when you compare offers.

Think about why you took the mortgage in the first place. When you’re buying a home to live in, you want it to be stable and to have peace of mind. That’s not exactly the same as a buy-to-let mortgage, because you’re balancing rent and tenant risk. 

This is also why landlords often pick a fixed rate for predictability, but only if they’re comfortable with how often and how much they’ll review the loan.

Finally, don’t chase the absolute lowest rate without checking the rest of the package! A slightly higher fixed home mortgage rate might let you make extra payments or link an offset account, which could save you more in the long run. 

Likewise, a variable-rate home loan might look higher but include fewer fees. Always look at the big picture and ask questions until everything makes sense.

How Upscore Can Help

If you want a tidy way of keeping your documents in one place and tracking monthly repayments, try Upscore’s Finance Passport. It gives you a really simple view of progress and keeps the essentials close when a lender asks a quick question – all for free!

Sign Up for Upscore’s Finance Passport Today!