Conflicts in Ukraine and now the Middle East are a reminder that the catastrophic impact of war is not confined to war zones.
The economic shock of the Iran conflict is currently spreading through energy markets, inflation and growth forecasts worldwide, with an OECD report suggesting the UK could be one of the more exposed advanced economies in 2026.¹
However, in uncertain times, capital and people tend to move towards stability and that is what the UK represents. Despite slower growth, the UK remains a trusted place to live, work and invest. So, for mortgage advisers, the focus of British expats looking to buy in the UK or return home and foreign nationals building a future in the UK can only grow.
WHERE EXPAT DEMAND IS COMING FROM
Pre-conflict data shows how widespread British expat demand for UK property already is. Australia leads at 10.8% of UK expat mortgage enquiries, followed by the US and Saudi Arabia at 8% each, and the UAE at 6.9%.²
This reflects where British professionals are earning strong incomes, with average earnings for expats at just over £100,000, well above UK norms.² That income strength supports average loan sizes of more than £300,000 and families often want a base at home, whether for future relocation, education or long-term security.
At the same time, Asia-Pacific and Europe continue to show steady demand, for a variety of reasons including lifestyle, career mobility and currency advantage.
WHY UK PROPERTY STILL APPEALS
Even with economic headwinds, the UK retains three key attractions.
First, legal and regulatory stability because property rights and lending frameworks are well understood here. Second, currency dynamics, because a weaker pound over recent years and increased volatility of late may have improved affordability for those earning in dollars, dirhams or euros.
Third, long-term value. Investors continue to target rental demand in key cities, while residential buyers see UK property as a safe place to hold wealth.
This is why foreign currency mortgages provide a helpful bridge from abroad provided by lenders who understand the nuance and underwriting expertise demanded by this type of lending, reflected in the near even split between buy-to-let and residential borrowing among expats.²
HOW FOREIGN CURRENCY MORTGAGES WORK
Foreign currency mortgages allow borrowers paid overseas to have their income assessed in that currency, rather than forcing conversion into sterling at standard affordability levels.
There are also other added layers of complexity with these mortgages alongside managing exchange rate conversion risk to produce the set monthly mortgage repayment. The income used after conversion into sterling has a 20% haircut applied and cases can be assessed with a practical view of currency fluctuation, supported by tools that reflect real-time exchange rates. The required documentation is often also more detailed for example with overseas payslips and contracts often required.
At the Darlington, our proposition includes lending up to 80% loan to value across 16 currencies, alongside a manual underwriting approach that looks at the full income picture rather than a narrow salary line.
For brokers, the clear opportunity is that expat clients are often high earners with strong deposits, but they need guidance through a more complex process.
THE OTHER SIDE OF THE MARKET
Alongside returning expats, inward migration continues to shape demand.
ONS data shows net migration falling to 204,000 in the year to June 2025, down sharply from the previous year.³ However, total immigration still stood at 898,000, with the majority coming from outside the EU.³
These are largely working-age individuals, many in skilled roles across healthcare, technology and construction. They are building careers and, increasingly, looking to buy homes.
There is still a perception that foreign nationals or those with overseas income present higher risk. In reality, many have stable employment, strong earnings and clear long-term plans.
The challenge is not risk, but fit. Standard lending models often struggle with multiple income streams, a limited UK credit history and Visa-based residencies. Lenders that understand these nuances can support viable borrowers who might otherwise be declined.
A MARKET BROKERS CANNOT IGNORE
The uncertain outlook and ongoing mobility is often reshaping the mix of clients brokers are seeing. Where British expats are looking home, skilled workers are settling in the UK and both groups bring strong earning potential but more complex profiles.
For advisers, cases requiring international expertise are a growing part of the market – and success will depend on understanding foreign income, navigating documentation and working with lenders that can take a broader view.
