Moving to Germany from UK — Buy a House
Moving to Germany from UK, or staying in Britain and buying German property? Buy a house in Germany from the UK: third-country status after Brexit, GBP income and how German banks assess the application.
In short
Is income in GBP accepted for a German mortgage?
Yes, at specialist banks, with a discount of 10–50 % on the income converted into euros, depending on currency and type of income. UK tax documents such as the P60 and SA302 are accepted as proof of income.
How much equity do I need with a UK residence?
up to 40 % depending on the case, plus incidental costs — the range depends on income type and credit standing; with a UK residence it is usually higher than for a German residence because of the foreign-risk surcharge.
Did Brexit make financing from the UK harder?
For a German mortgage Brexit itself now makes little difference — it has in fact improved the picture. While the UK was an EU member, many banks did not carry the case in their credit policy at all; since Brexit took full effect, more houses accept UK residence, and the choice of lenders is wider today than in 2019.
The real question is income in sterling: some lenders do not accept foreign-currency income, others do. Those that do credit it not in full but with a safety discount of 10 to 50 % on the amount converted into euros, depending on currency and type of income. British tax records (P60, SA302) and payslips are accepted as proof, but have to be prepared for the German lender. Equity runs up to 40 % plus purchase costs, usually higher than for a German resident because of the country-risk margin. The notary appointment is handled in person — visa-free with a German passport — or through a power of attorney with apostille.
UK residence post-Brexit
Why Brexit improved the financing situation
It sounds counter-intuitive — but for Germans resident in the UK, Brexit eased something about German mortgage financing:
While the UK was an EU member outside the euro area, many lenders declined that constellation outright. Since Brexit took full effect in 2021, the UK is no longer an EU member — and a UK residence is now assessed under the ordinary country rules of each bank.
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 discount of 10–50 % 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: up to 40 % depending on the case, plus incidental costs — with a UK residence usually 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
USA & Canada
USA, UK & Asia
UAE & Dubai
All countries of residence
Australia & New Zealand
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 narrows the pool of lenders here has nothing to do with Brexit: it is the pound.
If you live in London, you live outside the eurozone — but, since Brexit, also outside the EU. What decides the case is the currency risk of sterling income: lenders absorb it with a discount of 10–50 %, depending on currency and type of income. That many banks still decline is down to internal country lists and processing effort.
Three practical points
- The residence lever. Establishing a residence in Germany changes the starting position — but it carries significant tax consequences, because a residence within the meaning of § 8 AO can trigger unlimited German tax liability. This is not a trick; it is a decision with consequences. We explain the mechanism; the tax assessment belongs with a tax adviser.
- The income haircut. Lenders that do accept sterling income apply a safety discount to it — over a twenty-year term an exchange rate can travel a long way. That reduces recognised income noticeably and belongs in the budget from the outset, not in the disappointment at the end.
- Evidence. Payslips, P60s and Self-Assessment returns are perfectly valid proof, but they are unfamiliar formats to a German bank. They need to be prepared and explained, or the assessment stops before anyone has looked at them properly.
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