General information only. This guide explains how UK lenders usually approach people living in Dubai. It is not advice and not an offer of lending. Every lender has its own criteria, and they change often, so speak to a mortgage adviser before making any decision.
The short answer
Living in Dubai does not stop you getting a UK mortgage. The UAE is one of the countries UK expat lenders know best, and Dubai residents buy UK homes, buy-to-let flats and family properties every year. What changes is who will lend to you and on what terms.
Most UK high street banks either decline applicants who live overseas or only help existing customers. The market for Dubai residents is made up of specialist expat lenders, the international arms of UK banks, some building societies and private banks. They accept UAE residents and income paid in dirhams, but they usually ask for a larger deposit than a UK resident would need, and they look closely at your job, your visa, your pay package and your UK credit history.
If you are weighing up Dubai alongside other Gulf countries, our guide Can I get a UK mortgage while living in the Gulf? covers the whole region.
British expats and foreign nationals
Dubai has one of the most international populations in the world, and lenders treat applicants differently depending on their nationality and their link to the UK.
- British expats have the widest choice. Lenders like to see a UK connection, such as a previous UK address, a UK bank account or a UK credit history, and some will lend more to British citizens than to other nationalities.
- Foreign nationals living in Dubai can also get UK mortgages, particularly for buy-to-let. Fewer lenders are available, deposits and minimum incomes can be higher, and some lenders only accept certain nationalities or ask for a UK visa or right to reside for a home you will live in.
Lenders will also want to see that you are living in the UAE legally and for the longer term. A valid residence visa and Emirates ID are standard, and some lenders look at how long your visa has left to run or how long you have lived in the UAE.
Your dirham income and allowances
Employment income in the UAE is generally not subject to personal income tax, and lenders work from your gross pay on your contract and payslips. Because a UK mortgage is repaid in pounds, the lender converts your dirham income into sterling and often reduces it, commonly by 10% to 25%, to allow for exchange rate movements. The dirham is pegged to the US dollar at about 3.67 dirhams to the dollar, which makes the income more predictable, and some lenders treat it more favourably as a result. Your income in pounds still moves with the pound against the dollar.
Dubai pay packages often include a large housing allowance, plus transport, schooling and other allowances. Some lenders count housing allowance in full, some count part of it and some ignore it. Bonuses are usually averaged over one or two years, and end of service gratuity is not normally counted as income, although it can be a useful source of deposit. These choices can change how much you can borrow by a large amount. Our guide to UK mortgages with Gulf currency income explains how lenders convert AED income, with a worked example for a Dubai salary.
Where income is paid in a foreign currency, changes in exchange rates may affect the amount you need to repay in sterling. For a mortgage on a home you or your family will live in, the lender must also have arrangements to limit that risk and must warn you if movements change what you owe or your payments by more than 20%.
Employed, free zone or business owner
How you earn your money in Dubai matters as much as how much you earn.
- Employed on the mainland or in a free zone. Both are widely accepted. Lenders usually want you to have passed probation and to have a track record in your job or field. Fixed term contracts are normal and widely accepted.
- Self-employed, freelancers and business owners. Some lenders consider you, normally with at least two years of trading, your trade licence and accounts for the business. As there is usually no personal tax return in the UAE, lenders rely more on the company accounts, bank statements and the income you draw from the business. Audited accounts help.
Whichever applies, lenders look for regular income you can prove with documents.
Deposit and how much you can borrow
Most lenders for UAE residents lend up to 75% of the property value, so plan for a deposit of at least 25%. Some ask for 30% or more for foreign nationals, self-employed applicants, new build flats or high value properties.
For a home you will live in, many lenders use around 4.5 times your income as a guide, after they have converted it into pounds and applied any currency reduction. They also look at your commitments, including rent or loans in Dubai, and at their own affordability models, so the actual amount offered can be lower. Your deposit will usually be saved in dirhams, so keep a clear record of where it came from and allow for the exchange rate and transfer costs when you move it to the UK.
See your own figures. Our expat mortgage calculator gives a guide to how much you could borrow and what it would cost each month in pounds.
Buying a home, buy-to-let or remortgage
Buying a home. Many Dubai residents buy a UK home for their return, for family or for children at university. It is assessed on your income.
Buy-to-let. For a buy-to-let mortgage, the loan is based mainly on the rent, which is paid in pounds. Lenders test that the rent covers the interest at a stress rate, usually by 145% for individuals and 125% for limited companies, so buy-to-let has more lenders available to Dubai residents. Many lenders still set a minimum personal income. Some investors buy through a UK limited company, which has different lenders and costs. Rental income from a UK property is usually taxable in the UK even though you live in Dubai, and landlords overseas normally register under the Non-Resident Landlord Scheme. Tax depends on your circumstances, so speak to a tax adviser.
Remortgaging from Dubai. If you already own a UK property, you can remortgage to a new rate, release equity or switch a former home to buy-to-let while living in Dubai. Your existing lender may offer you only limited products once you move overseas, so it is worth comparing the wider market well before your current deal ends. Our guide to remortgaging a UK property while living abroad explains the options.
Stamp duty for Dubai residents
In England and Northern Ireland, buyers who are not UK resident pay a 2% surcharge on top of the standard Stamp Duty Land Tax rates. For an individual, you are usually treated as non-UK resident if you were in the UK for fewer than 183 days in the 12 months before you buy. If you then spend enough time in the UK soon after the purchase, you may be able to claim the surcharge back.
Anyone who already owns a residential property anywhere in the world, and is not replacing their main home, also pays a further 5%. This catches many Dubai residents by surprise: owning a flat or villa in Dubai counts, even if you have never owned property in the UK.
As an example, a Dubai resident who owns their apartment in Dubai and buys a £400,000 UK flat would pay about £10,000 at the standard rates, plus £8,000 for the non-resident surcharge and £20,000 for the additional property surcharge, around £38,000 in all. Scotland and Wales have their own taxes and rates. Your solicitor calculates and confirms the final figure.
Plan your budget. Our stamp duty and buying costs calculator adds up your deposit, stamp duty and fees in one figure, including the non-resident and additional property surcharges.
The documents you will need
Lenders and solicitors must check who you are, where you live and where your money comes from. A typical list for a Dubai resident is:
- Passport, UAE residence visa and Emirates ID
- Proof of your Dubai address, such as a tenancy contract or a recent utility bill
- An employment contract and a salary certificate from your employer that shows basic salary and each allowance separately
- Three to six months of payslips and bank statements showing your salary paid in
- For business owners, your trade licence and at least two years of company accounts
- Proof of your deposit, showing how it was built up
- Details of any UK property you own, and of your existing mortgage if you are remortgaging
Documents not in English may need a certified translation, and some lenders ask for copies to be certified. Most of the process can be handled remotely, with electronic signing and video calls. The UAE is four hours ahead of the UK in winter and three hours ahead in summer, so it helps to work with an adviser who is used to Gulf hours.
Sharia-compliant options
If you prefer not to pay interest, Sharia-compliant Home Purchase Plans are available to many Dubai residents for buying a home, buy-to-let and refinancing. Instead of lending you money and charging interest, the provider buys the property with you, you pay rent on its share and you gradually buy it out. Read our guide to Sharia-compliant UK home finance for Gulf expats to see how they work.
Before you apply
- Keep a UK footprint. A UK bank account and a UK credit card used and cleared each month help a lender see your UK history.
- Check your basic salary on its own. If the numbers only work with every allowance and bonus included, the choice of lender narrows quickly.
- Count your Dubai property. If you own a home in Dubai, include the 5% additional property surcharge in your budget.
- Leave room for the exchange rate. Borrowing at the very top of what you could afford today leaves little margin if the pound strengthens.
- Avoid applying to several lenders yourself. Each application leaves a mark on your credit file. A Decision in Principle from a lender that accepts Dubai residents tells you where you stand first.
- Use a specialist. An adviser who works with UAE residents every day knows which lenders accept your nationality, visa, employer and pay package.
For more on our service for UAE residents, see our pages for expats in Dubai and expats in Abu Dhabi.
Talk it through with an adviser
Every lender treats Dubai residents differently, so the figures in this guide are a starting point, not an answer. Speak to a specialist UK expat mortgage adviser who will check which lenders suit your nationality, income and plans, and can arrange a Decision in Principle, usually within 24 to 48 hours. The first consultation is free.