General information only. This guide explains how UK lenders usually approach people living in Singapore and Malaysia. 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 Singapore or Malaysia does not stop you getting a UK mortgage. 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 Singapore and Malaysia residents is made up of specialist expat lenders, the international arms of UK banks, some building societies and private banks. They usually ask for a larger deposit than a UK resident would need.
The two countries are not treated the same. Singapore is a familiar country of residence for UK expat lenders, and many accept income in Singapore dollars. Fewer lenders accept Malaysia residents and income paid in ringgit, so the choice is narrower and knowing which lenders will consider you is the key first step. If you live in Hong Kong, read our separate guide to UK mortgages for Hong Kong residents.
Who can apply
- British expats have the widest choice. A UK connection, such as a UK bank account or credit history, helps.
- Singapore citizens and permanent residents can get UK mortgages, particularly for buy-to-let and for property bought for children studying in the UK. Fewer lenders are available than for British expats, and deposits and minimum incomes can be higher.
- Malaysian nationals living in Malaysia have a smaller group of lenders to choose from. Buy-to-let is usually the easiest route, and a larger deposit or a higher income widens the choice.
- Other nationalities working in either country, for example on an Employment Pass, are considered by some lenders. Some only accept certain nationalities.
For a home you will live in yourself, some lenders ask non-British applicants for a UK visa or right to reside. Buying to let, or for a family member to live in, is often more straightforward.
Income in Singapore dollars or ringgit
A UK mortgage is lent and repaid in pounds, so the lender converts your income into sterling and often reduces it, commonly by 10% to 25%, to allow for exchange rate movements. Unlike the Gulf currencies and the Hong Kong dollar, neither the Singapore dollar nor the ringgit is pegged to the US dollar, and lenders treat them differently.
- Singapore dollars (SGD). Accepted by many specialist expat lenders, usually with a currency reduction applied.
- Malaysian ringgit (MYR). Accepted by a smaller number of lenders, sometimes with a larger reduction or a higher minimum income.
- US dollars or sterling. If part or all of your pay is in US dollars or pounds, which is common in energy, shipping and international finance roles, the choice of lenders can be wider.
Lenders work from your gross income. If you are a Singapore citizen or permanent resident, your CPF contributions come out of your pay, and in Malaysia your EPF contributions do the same. Lenders who look at the net pay reaching your bank account will see the lower figure, so it helps to have your payslips showing the full breakdown.
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%.
Bonuses, shares and allowances
Many expats in Singapore work in banking, finance and technology, and many in Malaysia work in energy, engineering and professional services. Pay in these sectors often includes more than a basic salary:
- Bonuses are usually averaged over one or two years, and some lenders count only half or another proportion. A thirteenth month payment, common in both countries, is often treated as part of salary if it is in your contract.
- Shares and deferred awards are counted by some lenders once they have vested and ignored by others.
- Housing, school and other allowances are counted in full, in part or not at all depending on the lender.
Employed or self-employed
Employed. Lenders usually want you to have passed probation and to have a track record in your job or field. Fixed term contracts are widely accepted.
Self-employed and business owners. Some lenders consider you, normally with at least two years of trading. They will want your company registration, accounts for the business and your personal tax assessments, and they look at the income you draw as well as the profit of the company.
Deposit and how much you can borrow
Most lenders for Singapore and Malaysia 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, Malaysia residents, first-time buyers, 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, any Singapore or Malaysia mortgage and car loans, so the actual amount offered can be lower.
Keep a clear record of where your deposit came from, and allow for the exchange rate and transfer costs when you move it to the UK. If you live in Malaysia, Bank Negara Malaysia's foreign exchange rules can limit how much a resident with ringgit borrowing, such as a Malaysian home or car loan, can invest abroad each year, so check with your Malaysian bank before you plan the transfer.
First-time buyers. Being a first-time buyer and living abroad at the same time narrows the choice of lender, but it does not rule you out. Remember that owning a flat in Singapore or Malaysia, including an HDB flat or a condominium, means you are not a first-time buyer, for lenders or for stamp duty.
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.
Buy-to-let and remortgaging
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 Singapore and Malaysia residents than mortgages for your own home. Many lenders still set a minimum personal income. Some investors buy through a UK limited company, which has different lenders, costs and tax treatment.
Rental income from a UK property is usually taxable in the UK even though you live overseas, and landlords overseas normally register under the Non-Resident Landlord Scheme. You may also have to report the income where you live. Tax depends on your circumstances, so speak to a tax adviser.
Remortgaging. 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 Singapore or Malaysia. Your existing lender may offer you only limited products once you move overseas, so compare 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 Singapore and Malaysia 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. 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%. Owning an HDB flat or condominium in Singapore, or a home in Malaysia, counts.
First-time buyer relief can still apply to non-UK residents, with the 2% surcharge added on top. It is only available if every buyer has never owned a home anywhere in the world, you intend to live in the property as your only or main home, and the price is £500,000 or less. Here is how that works for a £400,000 home:
| £400,000 home | First-time buyer who will live in it | Owns a home in Singapore or Malaysia |
|---|---|---|
| Standard or first-time buyer rates | £5,000 | £10,000 |
| 2% non-resident surcharge | £8,000 | £8,000 |
| 5% additional property surcharge | None | £20,000 |
| Total, about | £13,000 | £38,000 |
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 is:
- Passport, plus your NRIC (Singapore) or MyKad (Malaysia), or your Employment Pass or other work pass
- Proof of your address, such as a tenancy agreement, a recent utility bill or a bank statement
- Employment contract, three to six months of payslips and bank statements showing your salary paid in
- Your latest tax assessment: the IRAS Notice of Assessment in Singapore, or your Form EA and LHDN tax return in Malaysia
- Letters confirming any bonus, share or deferred awards
- For business owners, your company registration, at least two years of accounts and your personal tax assessments
- 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. Most of the process can be handled remotely, with electronic signing and video calls. Singapore and Malaysia are eight hours ahead of the UK in winter and seven hours ahead in summer.
Sharia-compliant options
If you prefer not to pay interest, Sharia-compliant Home Purchase Plans are available to many expats in Malaysia and Singapore 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 to see how they work. It is written for Gulf expats, but the way the plans work is the same.
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 bonus, share award and allowance included, the choice of lender narrows quickly.
- Count your property at home. If you own a flat in Singapore or Malaysia, include the 5% additional property surcharge in your budget.
- Plan your deposit transfer early, especially from Malaysia, and keep the paper trail.
- 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 your country of residence tells you where you stand first.
For more on our service, see our pages for expats in Singapore and expats in Malaysia.
Talk it through with an adviser
Every lender treats Singapore and Malaysia 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, currency, income and plans, and can arrange a Decision in Principle, usually within 24 to 48 hours. The first consultation is free.