Mortgage for overseas property: How to buy property abroad from the UK

A sun-drenched villa in southern Spain. A stone farmhouse in rural France. A beachfront apartment on the Algarve. Owning property abroad is one of those ambitions that feels both thrilling and slightly overwhelming — especially when it comes to financing the purchase.

Getting a mortgage for overseas property is entirely possible, but it works differently from buying in the UK. There are more moving parts: foreign lenders, unfamiliar legal systems, currency conversion, and tax obligations that catch many buyers off guard. This guide breaks down how to buy property abroad from the UK, step by step — so you can focus on finding the right home rather than getting lost in paperwork.

What is an overseas property mortgage?

An overseas property mortgage is simply a loan taken out on a property located outside the UK.

As a UK resident, you generally have two routes to financing:

Which route suits you depends on the country, your financial situation, and how comfortable you are navigating a foreign mortgage market. [1][2][3]

Can you get a mortgage for a property abroad as a UK resident?

Yes. UK residents can apply for a mortgage on an overseas property through either a UK lender with international services or a lender based in the country where the property is located. [1][3]

That said, eligibility isn't automatic. Lenders will assess your income, outgoings, and ability to meet monthly repayments. Overseas lenders may also require:

• Permanent residency or a valid visa
• A local credit history
• A larger deposit than a domestic buyer would need

Some countries restrict foreign property ownership entirely, while others have specific rules for non-residents. It's worth researching local regulations early. [2]

UK lenders vs. overseas lenders

Both options have clear strengths.

UK lenders

Several UK banks offer international mortgage services, typically covering destinations like Spain, Portugal, and France.

• Everything arranged in English
• Access to your UK credit history
• FCA protection
• Advice aligned with UK tax considerations

The downside is limited country coverage. [1][3]

Overseas lenders

Local lenders may offer more options and potentially lower rates.

However:

• Not FCA-regulated
• May require translators and local legal support
• May require residency or local credit history

If your mortgage is in a foreign currency, exchange rate fluctuations will affect your repayments. [2]

Can you borrow money in the UK to buy property overseas?

Yes — one common approach is remortgaging your UK property.

Remortgaging allows you to release equity and use it to fund a purchase abroad.

Advantages:

• No need for an overseas mortgage
• Loan remains in GBP (no currency risk on borrowing)
• Familiar UK process

Risks:

• Higher UK mortgage repayments
• Potential negative equity risk
• Your UK home is used as collateral

Speak to an FCA-registered adviser before proceeding. [6]

Deposits on overseas property

Expect higher deposits than in the UK. Overseas buyers typically need between 15% and 50%, depending on:

• Country
• Residency status
• Financial profile
• Lender requirements

In some countries, deposits may be non-refundable if the sale falls through. [2]

Fees and costs when buying property abroad

The mortgage is only part of the cost. You may also need to budget for:

• Legal fees
• Stamp duty or transfer tax
• Survey and valuation costs
• Notary fees
• Translation fees
• Mortgage arrangement fees
• Community fees

In many European countries, total buying costs can add around 10–15% on top of the purchase price. [2]

Documents you'll need for an overseas mortgage

Most lenders will ask for:

• Valid passport or ID
• Proof of UK address
• Proof of income
• Bank statements (3–6 months)
• Visa or residence permit (if required)
• Property purchase details or valuation

Translations may be required when dealing with overseas lenders.

How to apply for an overseas mortgage — step by step

1. Research lenders — compare UK and overseas options
2. Get an agreement in principle
3. Gather documents
4. Submit your application
5. Property valuation
6. Completion — often in front of a notary

Expect longer timelines than UK purchases. [1]

Can you get a buy-to-let mortgage abroad?

Yes, though rules vary by country.

Popular markets include France, Portugal, and the US. Some countries restrict foreign ownership or rental use.

Lenders typically assess:

• Expected rental income
• Rental yield vs repayments

Professional advice is strongly recommended. [2]

Do you have to declare overseas property to HMRC?

If you're a UK tax resident, you may need to declare overseas property income.

Rental income

Report through Self Assessment, even if taxed abroad. [4]

Capital Gains Tax

You may owe CGT when selling overseas property. Calculations are based in GBP. [5]

Double taxation relief

You may be able to claim relief if tax has already been paid abroad. [4]

Tax rules can be complex — professional advice is recommended.

Managing overseas mortgage payments with Wise

If your mortgage is with an overseas lender, you'll need to make payments in a foreign currency.

The Wise account is one option for managing this. It lets you:

• Hold and convert money in 40+ currencies
• Send money to 160+ countries
• Use the mid-market exchange rate
• Send large transfers
• Track payments easily

This can help reduce costs and improve visibility over your payments.

Frequently asked questions

Is it possible to get a mortgage for a property abroad?

Yes. UK residents can apply through UK or overseas lenders, depending on eligibility and country. [1]

Can I borrow money in the UK to buy property overseas?

Yes. Remortgaging your UK property is a common approach.

Can you get a loan for an overseas property?

Yes. Overseas mortgages work similarly to UK mortgages but may involve additional requirements.

Do I have to declare an overseas property to HMRC?

Yes. UK tax residents must report rental income and may pay CGT when selling. [4][5]

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Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is for general information only and does not constitute legal, tax or financial advice.

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1. HSBC Expat - Getting a mortgage for an overseas property
   https://www.expat.hsbc.com/mortgages/getting-an-overseas-mortgage/

2. Lumon - Mortgages for overseas property: A guide for UK buyers
   https://www.lumonpay.com/articles/mortgage-for-overseas-property-a-guide-for-uk-buyers/

3. HSBC International - How to finance an overseas property
   https://internationalservices.hsbc.com/buy-property-abroad/how-to-finance-an-overseas-property/

4. GOV.UK - Tax on foreign income
   https://www.gov.uk/tax-foreign-income

5. GOV.UK - Selling overseas property
   https://www.gov.uk/tax-sell-property/selling-overseas-property

6. Money Saving Expert - Mortgage fees and costs
   https://www.moneysavingexpert.com/mortgages/mortgage-fees-stamp-duty/

Sources checked 1 April 2026.