MortgagePropertiesThe impact of Brexit on UK citizens applying for a mortgage in Italy

7 July 20230

Brexit marked the United Kingdom’s official withdrawal from the European Union (EU) on January 31, 2020. The resulting changes in trade agreements, workforce constraints, and foreign relations have had a significant impact on many sectors, including the housing market. Let’s look at how Brexit has affected the experience of UK citizens applying for a mortgage in Italy, while providing useful tips for navigating this changing landscape.

The post-Brexit scenario: New challenges and opportunities

Britain’s exit from the EU has introduced significant changes in trade relations between the countries. This change, often called the biggest overnight shift in modern trade relations, has caused alterations not only in the country’s economy and politics, but also in its borders.

For British citizens seeking mortgages in Italy, this drastic change in trade relations means adjusting to new financial regulations, redefinition of residency rights, and changed market conditions. Although Brexit has created an aura of uncertainty, it is essential to focus on both the challenges and opportunities it presents.

Navigating financial regulations

First, the separation of the UK from the regulatory orbit of the EU means that UK citizens are now treated as non-EU citizens when applying for mortgages in the UK. This change may affect the percentage of the property value that banks are willing to lend, which is typically lower for non-EU residents. To prepare for this eventuality, potential buyers should be prepared to make a larger down payment.

Understanding changes in residency rights

In addition, British citizens no longer have the automatic right to reside indefinitely in EU countries, including Italy. This change means they must meet certain requirements, such as proving they have sufficient income, securing health insurance, or demonstrating integration into Italian society in order to obtain a long-term residency permit.

When applying for a mortgage, banks often take the applicant’s residency status into consideration, and these new rules could make the application process more rigid for British citizens. Therefore, it is essential to understand and comply with these residency rules before beginning the mortgage process.

Adapting to market conditions

On the positive side, the impact of Brexit on the value of the pound and fluctuations in the housing market could create new investment opportunities. A weaker pound could make Italian properties more expensive for British buyers, but on the other hand it could mean an increase in rental income from Italian properties for British landlords once converted to sterling.

Tips for navigating the new scenario


Stay informed:

Keep abreast of the latest Brexit developments and how they affect UK-Italian relations. This proactive approach will help you anticipate changes and make informed decisions.

Plan finances carefully:

The changing financial landscape means that UK citizens may need to plan more meticulously. This planning could involve saving more for your down payment, taking into account potential currency fluctuations, and understanding the tax implications in both the UK and the UK.

Seek professional advice:

It is advisable to seek the advice of financial advisors who specialize in advising mortgages for foreign customers and who are familiar with both the Italian and UK markets. They can guide you through the application process, help you with paperwork and make sure you are aware of all legal and financial aspects. FMoretto Consulting – a leading mortgage consulting firm for foreign clients may be the winning choice.

Consider residency requirements:

If you plan to live permanently in Italy, you should be aware of the new residency requirements after Brexit. You may have to show proof of income, secure health coverage and even learn Italian at some level.

Patience is key:

With the introduction of additional regulations and paperwork, the mortgage application process may take longer than in the past. Patience will be a valuable ally in obtaining a mortgage in Italy after Brexit.


In conclusion, although the Brexit has undoubtedly complicated the process for British citizens to apply for mortgages in Italy, it is not an insurmountable challenge. By informing themselves, planning their finances, seeking professional advice, considering residency requirements and practicing patience, British citizens can be assured that realizing their Italian dream can be crowned with success.

Leave a Reply

Your email address will not be published. Required fields are marked *



    Fill out the simple form and we will contact you to evaluate together the best market offer for you


    OCF CFA iscr. n.1918 del 04.05.2022
    EFPA ESG Advisor Cert. Nr. IT202221936
    N° iscrizione RUI: B000609294
    FERMA Rimap Cert. n. 20200262