Can Americans Get a Mortgage in England?

Yes, Americans can get a mortgage in England. But here’s what you need to know before you start searching for that dream cottage in England.

Many Americans considering moving to England often wonder if they can secure a mortgage for that perfect Victorian terraced house or idyllic countryside cottage. I was certainly one of them.

However, when I met with a UK mortgage lender, we were both surprised by the stark differences between the mortgage process in the UK and the US.

While it is legal for Americans to obtain a mortgage in England, there are important considerations to understand before diving into your home search.

1. Your US Credit Does Not Transfer to England

Every country has their own system for evaluating creditworthiness, and these systems are not connected globally.

So, even if you’ve spent years building excellent credit in the United States, when you move to England, you’ll essentially be starting from scratch.

In most cases, it will take many months-or even years-to build credit in England. You will likely need to take specific steps before you’ will be’re offered the best rates mortgages (or even approved for a mortgage at all!).

When we first arrived in England, I tried to build my credit by applying for a credit card from my UK bank. Even with a low credit limit and a healthy cash balance in an account with them, I was denied!

The banker advised me to come back after six months, once I could demonstrate a solid payment history on other accounts.

Also, remember: even though your credit score doesn’t follow you to England, your existing debt does!

2. Home Buyers Rarely Have a Dedicated Agent

Real estate agents, as we know them in the United States, don’t exist in the same way in the UK.

When buying a home in America, you typically work with a real estate agent who shows properties, writes contracts, and negotiates on your behalf. They act as your advocate throughout the process, ensuring your interests are protected. In England, however, the process is very different.

However in England, sellers will generally have an agent, but buyers rarely do.

If you’re interested in a property, you’ll need to independently research available homes and contact the seller’s agent directly to schedule a showing. Don’t expect a quick turnaround—it can take days to secure an appointment, especially if the seller or their agent is unavailable or on holiday. Unlike in the U.S., where buyers often have agents coordinating the process, much of the legwork will fall on you.

When you arrive for the showing, the seller’s agent may be there, but more often than not, it’s the seller themselves—or even a family member like Uncle Bob—who will show you around. You never quite know who will be there!

When you arrive for the showing, the seller’s agent may be present to walk you through the property. However, more often than not, it’s the seller themselves—or even a family member, like “Uncle Bob”—handling the viewing. This informal approach can feel quite different from the professional, polished showings you might expect in the U.S. You never quite know who you’ll meet or how much information they’ll share about the property!

Over time, though, I actually came to appreciate meeting the sellers. Many were eager to share insights and answer questions, often providing more information than an agent might have. It turned out to be a unique and valuable part of the home-buying experience.

3. Beware of Gazumping and Gazundering

One of the most stressful parts of the home-buying process in the US is waiting to hear if your offer has been be accepted by the seller.

In England, however, that relief can be short-lived. Even if a buyer’s offer is accepted, the seller can still accept a higher offer from someone else. This means the first buyer could be “gazumped”—pushed out of the deal and forced to start the process all over again.

Gazumping is a unique and frustrating experience for homebuyers in the UK, as it’s not something many are prepared for. The lack of a binding agreement until later in the process leaves buyers vulnerable to being outbid at any stage before contracts are signed. This is one of the key differences that can make the UK home-buying process feel much more uncertain.

This frustrating scenario is called gazumping, and yes, it is perfectly legal in the UK. In fact, in 2024, 37% of UK homebuyers reported being gazumped during their property search!

Another term you might encounter in the UK property market is gazundering. This happens when a buyer lowers their offer just before the sale is completed, putting the seller in a tough spot. Like gazumping, gazundering is legal in the UK, so it’s important to be aware of both practices as you navigate the property process.

4. 30-Year Fixed Rate Mortgages Are Not the Norm in England

I took for granted that when you buy a home in America, you can lock in that interest rate for 30 years. If rates drop, you have the option to refinance, making your payment even lower.

In England, however, the mortgage landscape is quite different. Fixed-rate mortgages are typically for much shorter periods—usually 2 or 5 years. Some Brits with good credit might opt for a 7-year or even a 10-year fixed rate, but anything longer is rare.

Once the fixed-rate period ends, you typically move onto the Standard Variable Rate (SVR), or consider remortgaging (which is essentially refinancing) to secure a new deal.

It’s only in recent years that 30-year fixed-rate mortgages have become available in the UK market. If you’re an American expat living in England, it’s important to consult a local lender to find out what mortgage products are available to you, especially if you’ve lived in the UK for less than three years. Lenders will often take your time living in the country into account when determining your eligibility for certain mortgage products.

5. There is an Age Limit

Many Brits are surprised to learn that in America, you can take out a 30-year mortgage—even at the age of 102! This is thanks to the Equal Credit Opportunity Act, which prevents lenders in the U.S. from discriminating based on age.

In the UK, however, mortgage terms are generally much shorter. Typically, they last only until you turn 70 or reach your retirement age, whichever comes first. When we moved to England, I was 45, so the longest mortgage term I could secure was 25 years.

This limitation can significantly reduce the length of your term and increase your monthly payments, which is an important factor to consider as you start your home search—especially if you plan to retire in England! Understanding these differences in mortgage regulations can help you plan your finances more effectively, ensuring that you can manage your payments through to retirement.