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Buy To Let Overseas Mortgages

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 8, 2023

Buy To Let Overseas Mortgages

Are you interested in jumping onto the property ladder? Property is a great investment, and it’s always better to start sooner than later.

Although a buy-to-let mortgage abroad is more challenging than a UK property, you get to benefit from the reasonable house prices and impressive profit margins. To us, we’d say it’s a clever business move.

However, you should never enter an overseas territory blind. We’ll tell you everything there is to know, including where to find proper support to smoothly sail through the mortgage abroad process.

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How can you get a buy-to-let mortgage deal overseas?

Before celebrating reasonable property prices and low-interest rates, you must be able to finance your overseas property to receive a mortgage deal. Here are three ways to go about it:

Remortgage a property for your new one

Most lenders won’t have the correct knowledge of the area where you wish to purchase a property. However, remortgaging an existing mortgage is a straightforward process and probably the fastest out of these three options.

But to get this done correctly without additional costs, you must seek advice from an exclusive mortgage expert who understands the local laws and regulations for overseas properties in your desired area.

Borrow from an overseas lender who has an understanding of the UK

This might seem like the best of both worlds, but you could pay higher, excessive mortgage rates without a genuine understanding of the property market you want to invest in. At LoanCorp, we can help you find an international lender to help you find the best rates.

Use a local lender from the country you want to buy your overseas property

If you choose this option, you may have to pay for translation fees, a property law expert from the area that understands the local laws, and various other additional charges. However, the mortgage rates can be considerably lower depending on the country you wish to purchase in.

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Can you get a buy-to-let mortgage in any country?

The closer you are to the UK, aside from the USA and UAE, the more likely you’ll have your buy-to-let mortgage approved. For example, overseas buyers regularly pick Spain and France as their property abroad.

Most countries allow UK citizens to get buy-to-let property. But there are some places, such as Australia and New Zealand, with restrictions in place. We always recommend doing your research before looking at houses overseas.


What to consider before applying for a buy-to-let overseas mortgage?

Before looking at an overseas property, consider these things:

The demand for property overseas

Although countries like Spain and France are immensely popular with international buyers, they’re also extremely competitive. A mortgage advisor can help you hunt for any areas that have dropped in price.

Have you thought about looking at other areas that are cheaper but still profitable? Countries such as Austria, Belgium, and Denmark are becoming very popular overseas destinations.

The local fees and taxes

It’s extremely common for buyers to forget about the additional fees. Take a look at the local costs, taxes, rates, etc. As you’re investing in rental property, you’ll want to look at the rental income of your desired area from the past years.

Your affordability

You can receive a rough cost of your mortgage online by using our mortgage calculator. Once you tell us the loan amount, mortgage rate, and term, it’ll reveal an estimate of how much your monthly payments will be.

Getting your application reviewed

Speaking to a mortgage broker overseas will help you better understand the property market and perfect your application by using their expert knowledge of what a mortgage lender is looking for.

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What about the lender criteria for a buy-to-let mortgage overseas?

Depending on your destination, each lender will have their way of checking you’re eligible for a mortgage. However, mortgage providers lending a hefty sum will usually look at your:

Credit file

Although having bad credit history provides you with smaller windows of opportunity, it doesn’t close the door for good. A few mortgage providers are lending to people with bad credit. It’s extremely important to seek advice from a mortgage advisor who knows the best steps to take if you have a poor credit file.

If your credit file is clean, you’re more likely to be accepted by a lender for a buy-to-let mortgage.


Typically, lenders want to see you earn at least £25,000 a year. Not only do lenders want to know you can afford the property price, but they also want to know you can afford the rental income if you have a quiet month.


What are the buy-to-let deposit conditions?

There is no set amount for what your deposit could be, as this depends on the country you live in, and then on top of that, it depends on the lender you choose.

Typically, the higher the deposit, the lower the loan to value will be, so a higher deposit doesn’t necessarily make it a poor investment choice, as you’re usually left with a broader choice and better rates.

However, you must know all of the terms before you pay any money, as some countries require a non-refundable deposit – which could be a huge loss if it’s a large payment.

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What else should you consider?

Exchange rates

When we go abroad, we don’t pay attention to a couple of pounds here and there that we may lose out on due to exchange rates. But what about the thousands of pounds you’ll lose when we’re talking big money?

When buying abroad, think about using these arrangments for extra security:

  • Market orders – With this in place, you’ll be able to target an amount that doesn’t exist yet, but once it’s available, it’s all yours.
  • Forward contracts – Essentially, you’ll lock in on a price that you like, and it’ll stay that way, whether you end up in favour or not.


As a UK resident, you’ll still have to pay tax for your rental income and local taxes. However, you won’t have to pay tax if there’s a double taxation agreement between the UK and that country.

We recommend speaking to an expert advisor to understand better what taxes you’ll have to pay.

The financial conduct authority

If you get a buy-to-let mortgage abroad, you won’t be protected by the financial conduct authority if anything goes wrong. If this worries you, you should seek financial advice from a country that can offer similar schemes to protect you.

Your knowledge of the country

We recommend speaking to an international mortgage advisor who can provide you with everything they know about the country. It’ll be helpful to understand where’s popular and reasonable and where the property value may rise in the future.

Your ability to communicate

Not speaking the language of the country where you wish to buy a property can lead to a slower mortgage process and sharing incorrect information. If you wish to get a translator to help with this process, add the fees to your overall cost.

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Do you need expert advice?

Having an expert translate the legalities of getting a mortgage abroad is important. As we mentioned before, the process varies from country to lender, so it’s important to know exactly what you’re doing to quicken the process and land the best deals.

While you do the fun stuff, let a mortgage advisor research the best way to finance your mortgage, find you the best lenders, provide mortgage advice, and find the best way to make your application a guaranteed approval.

We can get you mortgages in the below countries, plus many more:


Can foreigners get a buy-to-let mortgage in the UK?

Yes, they can! Although it’s not an easy process to buy a UK property. Buy-to-let mortgages require proof of income, employment, etc.

What popular countries have a double taxation agreement?

What UK banks offer buy-to-let mortgages?

If you like what you have read or need any more free advice, start your application below now:

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