How an 80% expat mortgage supported a Central London new-build purchase
A British expatriate family living in Bermuda bought a new-build London apartment while retaining their existing UK home, using a repayment structure designed around overseas income, a recent job move and the need to preserve liquidity.
Elizabeth Powell
Elizabeth coordinated the overseas income, recent employment history, existing London mortgage and future letting plans so the purchase could be assessed as one connected financial picture.
The case at a glance
- The challenge
- Overseas tax-free earnings, a recent permanent job move, bonus income and an existing UK mortgage all needed specialist assessment.
- The solution
- An 80% loan-to-value capital repayment mortgage over 34 years, with a two-year fixed rate and annual overpayment flexibility.
- The outcome
- The family purchased the Central London apartment, retained their existing home and preserved significant accessible capital.
A strong financial position that did not fit a standard UK mortgage journey.
The family were living in Bermuda and wanted to buy a newly built apartment in Central London. They also wanted to keep their existing London home, which they intended to let after moving. That meant the new residential mortgage could not be assessed in isolation from the mortgage and future use of the property they already owned.
- Overseas income and residency The primary applicant earned a substantial tax-free salary in Bermuda together with a significant annual bonus. Lender appetite needed to cover both the jurisdiction and the way the overseas remuneration was evidenced.
- Only six months with the current employer The applicant had joined a new employer on a permanent contract and had successfully completed probation. The short service history narrowed the lenders willing to rely on the income.
- An existing UK home becoming a rental property The family already had a sizeable residential mortgage. Some lenders questioned the future rental income or preferred the existing home to be formally refinanced before considering the new residential purchase.
These are the kinds of cross-border factors covered in Willow’s guide to obtaining a UK mortgage while living abroad: residency, income evidence, property use and existing commitments can matter as much as headline affordability.
Match the lender to the whole structure, not just the salary.
Elizabeth’s work focused on presenting the clients’ financial strength in a way that a suitable lender could assess. Their disposable income was strong, committed monthly expenditure was low relative to earnings, and they had sufficient capital to fund the deposit without exhausting their accessible reserves.
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Find a lender comfortable with the overseas profile
The lender needed to accept Bermuda residency, a permanent role with six months’ service and a remuneration package that included a significant variable bonus.
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Account for the retained London property
The application was structured around the existing mortgage and the clients’ intention to let that home after moving, without forcing an unnecessary deposit increase on the new purchase.
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Balance leverage with future flexibility
The selected structure used an approximately 20% deposit and an 80% loan-to-value repayment mortgage over 34 years, fixed for two years, with annual overpayments of up to 10% permitted without penalty.
A London purchase completed without tying up more capital than necessary.
By selecting a lender willing to assess overseas employment, recent permanent service and the future use of the existing property together, Elizabeth secured an 80% loan-to-value residential mortgage that supported the clients’ purchase of the new-build apartment.
The family retained ownership of their existing London home and preserved significant cash reserves. The repayment mortgage also gave them a defined route to reduce the capital balance over time, while the 10% annual overpayment allowance left scope to use future bonus income or savings if they wished.
For an expat buyer, the right structure can preserve liquidity without ignoring the lender implications of overseas income, recent employment and a retained UK property.
Estate planning was reviewed alongside the property decision.
The clients’ personal protection arrangements were already largely in place, but they did not have valid Wills. With a growing family, UK property ownership and an international lifestyle, Elizabeth introduced specialist advisers to discuss Will writing, trusts and broader estate-planning considerations.
Those legal and estate-planning matters sit outside the mortgage recommendation itself. The introduction was intended to help the family obtain appropriate specialist advice rather than treat the property purchase as a standalone financial decision.
Questions this case raises for other expat buyers.
Can a British expat get a UK residential mortgage while living overseas?
Potentially. Lender appetite varies by country of residence, income currency, intended property use, deposit, credit profile and evidence. A strong income does not remove the need to find a lender whose cross-border criteria fit the full application.
Can overseas bonus income be included in mortgage affordability?
Some lenders may use all or part of evidenced variable income, while others apply tighter rules. In this case, the bonus formed part of the wider remuneration profile assessed alongside permanent employment and strong disposable income.
Can I keep my existing UK home and let it when I buy another property?
It may be possible, but the existing lender’s requirements, the new lender’s affordability treatment, the proposed rental income and the correct letting or buy-to-let structure all need consideration. The right route depends on the individual properties and borrowing.
Is a higher loan-to-value mortgage sensible if I have enough cash for a larger deposit?
That depends on the purpose of retaining the cash and the extra borrowing cost. A larger deposit can reduce debt and interest, while a higher loan-to-value can preserve liquidity. The comparison should include monthly affordability, total cost and what the retained capital is for.
Buying in the UK from overseas requires more than an affordability calculation.
If you live abroad, earn overseas income or want to retain another UK property when you move, start with a review of the complete structure before choosing a lender or deposit level.
Understand your options before you commit. Your initial conversation, assessment and presentation of suitable options are free, with no obligation. Any fees are explained before you decide whether to proceed.
Elizabeth Powell
Adviser at Willow Private FinanceElizabeth handled this case. Your enquiry will go to the Willow team so your circumstances can be assessed and directed appropriately.
Enquire with the Willow team Or call 0207 082 5175- 01 Tell us what you need Share the property objective, overseas position and existing borrowing.
- 02 We assess the structure Willow reviews lender fit, affordability treatment and the evidence required.
- 03 You decide Suitable options and all costs are explained before you choose whether to proceed.
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