Financing property in Germany while living in the UK

Why Brexit improved the financing situation

It sounds counter-intuitive — but for Germans resident in the UK, Brexit eased something about German mortgage financing:

As long as the UK was an EU member, the conversion right (§503 BGB) applied. For many banks that was a reason to decline. Since Brexit took full effect in 2021, the UK is no longer an EU member — the conversion right no longer applies to a UK residence.

That means the choice of banks for Germans resident in the UK is now larger than it was back in 2019.

Income in GBP — what's possible

• GBP income: possible at specialist banks, with a typical discount of 10–20 % on the income converted into euros
• UK tax documents (P60, SA302): accepted as proof of income — English is standard
• Employer: stable corporate employment is preferred; the self-employed in the UK have a smaller circle of banks
• Equity: 30–40 % + incidental costs — higher than for a German residence because of the foreign-risk surcharge
• Notary appointment: travelling in person (visa-free with a German passport) or a power of attorney with apostille

Financing from other countries

Sterling worries lenders more than Brexit ever did

Leaving the EU did not make it harder to buy property in Germany. Purchase and land registry entry are open to anyone, regardless of nationality or country of residence. What makes this case difficult has nothing to do with Brexit: it is the pound.

If you live in London, you live outside the eurozone. A German euro loan is therefore not denominated in the currency of your country of residence — and that triggers the statutory conversion right under § 503 BGB: where the exchange rate moves substantially, the borrower may demand conversion into their own currency. For the lender that is an open-ended obligation. Many simply decline the case rather than carry it.

The detail almost everyone gets wrong: the right attaches to the currency of your country of residence, not to the currency of your income. Live in Frankfurt and be paid in sterling — no conversion right. Live in London and be paid in euros — you have one.