Mortgage Calculator

Work out the monthly cost of a UK mortgage as a non-resident or expat buyer. Lending to investors who live abroad is usually arranged on an interest-only basis, so the calculator uses that model by default — switch to capital and interest to compare.

Interest only or capital and interest

On capital and interest (repayment), part of every instalment reduces the debt and the loan is cleared by the end of the term. On interest only you pay the interest alone: the capital stays where it is and the whole loan is still owed when the term ends.

Buy-to-let lending to investors living abroad is almost always interest only. The aim is to leave as much of the monthly rent free as possible and to clear the capital through a sale or a refinance. On a £450,000 loan at 5.4%, interest only costs £2,025 a month against roughly £2,737 on capital and interest — a difference that changes what a rental income can support.

Can a non-UK resident get a UK mortgage?

Yes, and several lenders specialise in it. The criteria work differently from those applied to a UK resident:

• Deposit. At least 25% of the property value is normally expected, and some lenders ask for more depending on your country of residence and the shape of your income.
• Income criteria. The nature of your income, how well it can be documented, and the currency it is earned in all form part of the assessment.
• Rental cover test. On buy-to-let lending, the expected rent must cover the payment by a set margin even in a scenario where interest rates rise — the interest coverage ratio.

We identify the most suitable options together, taking your financial goals and means into account. You can begin with our financial qualification step and work through the process with our mortgage advisers.

How the mortgage process works

1. Agreement in Principle. Your lender’s provisional confirmation that it could lend a given amount. Obtaining one before you start looking makes your offer more credible.
2. Application. The formal application, with income, identity and address documents.
3. Valuation. The lender’s own assessment of the property.
4. Mortgage offer. Formal approval of the loan, with the terms set out in writing.

Cash needed at purchase

Alongside the monthly payment there are costs to meet at the point of purchase: the deposit, stamp duty, the lender’s arrangement fee, the valuation fee and legal costs.

By default the calculator shows the mortgage alone. Tick “Include stamp duty in the total” and four questions about your circumstances appear, after which the deposit and stamp duty are brought together into a single figure. Legal costs, the arrangement fee and the valuation vary considerably by lender and by structure, so they are not included in that total; we plan those alongside you for your particular purchase.

To see how stamp duty changes for your own circumstances, band by band, use our stamp duty calculator.

Frequently Asked Questions

Can a non-UK resident get a mortgage in the UK?

Yes. A number of lenders offer mortgages to buyers living overseas. A deposit of at least 25% is usually expected, and your income documentation and the rental cover test are assessed separately.

How much deposit do overseas buyers need?

Normally at least 25% of the property value. The figure can be higher depending on the lender, your country of residence and how your income is structured.

What does interest only mean?

You pay only the interest, and the capital stays unchanged for the whole term. The monthly cost is lower, but the entire loan is still owed at the end and must be cleared by a sale or a refinance.

What is the rental cover test?

On buy-to-let lending, the lender checks that the expected rent covers the mortgage payment by a set margin even if interest rates rise. It is known as the interest coverage ratio.

Do I need a UK bank account to get a mortgage?

Requirements vary by lender. Some ask for a UK account for the payments, others accept an overseas account. We check this with the lender at the Agreement in Principle stage.