Flying the flag for expat buy-to-let
By Chris Blewitt, Head of Mortgage Distribution at Darlington Building Society
A decade ago, buy-to-let activity among British expats was viewed as a niche pursuit. A small part of the mortgage market, often overlooked in favour of more familiar residential routes. But that’s beginning to shift.
A combination of global movement, steady UK property demand and long-term planning is prompting more overseas borrowers to explore their options. And more brokers are seeing this filter through in the form of regular buy-to-let enquiries.
A growing overseas audience
According to the latest British Expat Report from Currencies Direct (October 2024), nearly a quarter of UK adults are thinking about moving abroad in the next five years, with more than one in ten considering a move within the next 12 months. It’s a trend being driven largely by younger age groups. Thirty-eight percent of 25 to 34-year-olds, and over a third of 18 to 24-year-olds, are weighing up their options. Some will rent. Some will leave permanently. But many still see value in holding on to property in the UK, either as a future base or a way to generate income while they’re away.¹
For those clients, a buy-to-let purchase is often the route in. And that’s where things start to get more complex.
Plenty of moving parts
Expat buy-to-let lending is not always straightforward. Lender appetite varies. So do requirements. In some cases, income must meet a certain threshold. In others, the type of employment, currency, or jurisdiction can change the outcome entirely.
Some lenders apply a haircut of up to 20 percent on foreign income to account for fluctuations in exchange rates. Others may restrict the amount of personal occupation allowed under an Assured Shorthold Tenancy (AST) buy-to-let arrangement. Rental income is typically assessed using the expected monthly rent from a standard tenancy agreement, and in some cases, lenders may require confirmation from a local letting agent to support the projected figures.
In many cases, the property in question is the applicant’s former UK residence, now being converted into a buy-to-let to support their move abroad. These scenarios are increasingly common and add another layer of consideration when assessing lender appetite and exit plans.
It’s not just about ticking boxes either. Clients based in countries like South Africa or parts of the Middle East may find fewer options, depending on the lender’s exposure and risk appetite.
But demand is there. And for brokers with the right connections, there’s an opportunity to meet it.
More than just an investment
For some clients, the aim is to return to the UK in a few years. For others, it’s about keeping options open.
It’s easy to see why this space is gaining attention. According to UK Finance, £9.6 billion worth of new buy-to-let loans were advanced in Q4 2024, up 47.2 percent by value compared with the same period the year before. Yields remain steady too, with the average gross return sitting at 7 percent. For many landlords, the fundamentals are still working, and for new investors, UK property continues to offer a tangible, long-term opportunity.²
Where brokers can add value
This part of the market is not new. But it is changing. And the brokers who understand the practical details, such as the currencies, the paperwork and the timelines, are the ones who can make a difference.
These cases are rarely off the shelf. But they don’t need to be complex either. It’s about understanding what each lender will and won’t accept, and making sure the deal stacks up from the start.
Many brokers will already have experience here. Others may be revisiting this space after a quieter few years. But with borrower interest growing, and lender criteria starting to shift, this is an area worth watching again.
Buy-to-let may not suit every expat client. But for those with the income, the intention, and the right adviser, it’s a route that can make real financial sense, both now and in the years to come.
Sources:
2.) https://www.ukfinance.org.uk/system/files/2025-04/Buy%20to%20let%20Mortgage%20Market%20Update_0.pdf
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