For many UK buyers, owning property abroad is no longer just a dream — it’s part of a lifestyle, a wealth diversification strategy, or even a long-term relocation plan. Whether it’s a holiday home in France, a rental investment in Spain, or a retirement villa in Portugal, international property ownership continues to grow in popularity.

But financing these purchases in 2025 comes with its own unique challenges. Traditional high street lenders rarely touch cross-border deals, currency fluctuations can make affordability unpredictable, and legal frameworks vary dramatically from one country to another.

The good news?

While complex, cross-border property finance is far from impossible. Specialist brokers, private banks, and niche lenders can still open the door to global opportunities for UK-based buyers.

In this blog, we’ll explore:

• Why traditional financing options are so limited.
• The key challenges buyers face in 2025.
• Opportunities available through private banking and specialist lenders.
• Practical strategies to make cross-border finance work.

Why UK Buyers Struggle with Overseas Property Finance

The first thing most buyers discover when exploring an overseas purchase is how reluctant mainstream UK lenders are to engage. High street banks typically avoid financing international property for one simple reason: risk.

• Legal variation: Each country has different property laws and foreclosure processes. Enforcing security across borders is slow, complex, and costly.
• Currency exposure: Lenders don’t want to be caught in situations where repayments fluctuate due to GBP/EUR or GBP/USD movements.
• Valuation difficulties: UK lenders lack local expertise to assess property values abroad accurately.

As a result, most UK buyers quickly discover that their standard mortgage provider won’t help. This is where alternative solutions become vital.

👉 Related reading: Can You Buy Property in the UK Without a Visa or Credit History?

The Challenges of Cross-Border Finance in 2025

1. Currency Risk

One of the most overlooked aspects of cross-border property finance is the role of exchange rates. A weakening pound against the euro or dollar can increase repayments significantly, even if interest rates remain stable.

For example, a UK buyer with a euro mortgage in 2022 saw costs climb dramatically when GBP fell following political uncertainty. In 2025, with continued volatility around UK and European interest rate cycles, this remains a critical risk.

👉 For a deeper dive, see: Currency Risk and Income Verification: Challenges of Foreign Income.

2. Income Verification Across Borders

UK-based buyers often earn income in sterling, while the mortgage they need may be in euros, dollars, or Swiss francs. Lenders abroad may require documentation that looks very different from UK payslips or company accounts, and not all foreign banks accept UK accountants’ formats.

👉 Related reading: Overcoming UK Credit History Gaps: Tips for Expat Applicants.

3. Legal and Tax Complexities

Each jurisdiction applies different rules around stamp duty, property taxes, and inheritance laws. In France, for example, succession law dictates how property passes on death, which can complicate ownership structures.

👉 For UK-specific inheritance planning, see: Inheritance Tax Planning with Whole of Life Policies in 2025.

4. Limited Lender Appetite

While some European banks still lend to UK buyers, many pulled back after Brexit. They may impose higher deposit requirements (sometimes 30–40%) or restrict lending to specific nationalities.

Opportunities: Where UK Buyers Can Still Find Finance

Despite the hurdles, opportunities remain open for well-prepared buyers.

Private Banks and HNW Solutions

Private banks remain one of the strongest routes for cross-border property finance. They are willing to lend internationally provided clients bring a broader relationship — such as assets under management (AUM).

For example, a UK client purchasing a chalet in Switzerland may secure lending by placing £1m+ with a private bank, which then provides a flexible mortgage at competitive rates.

👉 Related reading: High Net Worth Mortgages in 2025: What Lenders Look for Beyond Income.

Specialist Lenders and Niche Banks

A number of smaller, international banks still offer mortgages to UK clients in popular markets like France, Spain, and Portugal. These lenders understand local law and taxation, and can structure mortgages that align with UK income streams.

Development and Bridging Options

For buyers undertaking renovation or development abroad, bridging and development finance may be available through international private lenders. While higher cost, these products can open doors when mainstream mortgages are unavailable.

👉 Explore more: How to Finance Property Development Abroad While Based in the UK.

Practical Strategies for Buyers in 2025

• Plan for Currency Volatility
  Using a currency forward contract or fixing exchange rates with a specialist FX provider can protect against sudden repayment spikes.

• Engage Local Legal Experts
  Relying on UK solicitors alone is not enough. A local notaire or avocat can explain taxes, inheritance law, and ownership structures specific to the country.

• Leverage Broker Networks
  Specialist brokers like Willow Private Finance have relationships with lenders across Europe and globally, enabling access to solutions not available directly.

• Consider Ownership Structures Early
  Decide whether to hold property personally, through a company, or via a trust. The right structure can reduce tax exposure and improve lending eligibility.

👉 For UK structuring insights: SPVs vs. Trading Companies: What Landlords Must Know in 2025.

Case Study: Financing a Villa in Spain

A UK-based couple recently approached Willow Private Finance seeking finance for a €1.2m villa in Marbella. Their UK bank refused, citing cross-border complexity.

Through a private bank partner, Willow structured a solution:

• 60% LTV euro mortgage.
• Fixed-rate loan to mitigate currency risk.
• Assets under management placed with the bank to secure competitive terms.

This not only enabled the purchase but also opened additional wealth management benefits for the clients.

Conclusion

Cross-border property finance in 2025 is undeniably complex, but it’s not closed to UK buyers. With careful planning, expert advice, and the right lender relationships, international property ownership remains a realistic goal.

The key is recognising that traditional UK lenders won’t provide solutions — but private banks, niche lenders, and international specialists still will. By preparing properly and taking a strategic approach, UK buyers can continue to secure homes, investments, and opportunities abroad.

📞 Want Help Navigating International Property Finance?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward — whether you’re buying in Spain, France, or beyond.