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How To Get A UK Mortgage With A Foreign Income
Whether you're working abroad or a British resident earning in a non-pound sterling currency, applying for a mortgage with a foreign income can have its obstacles.
Many high street banks will shy away from borrowers on a foreign income. Still, whether you're earning in Euros, Dollars, or Yen, there are lenders who will give you attractive mortgage terms when purchasing or remortgaging a UK property.
While you're here, check out our complete guide on UK mortgages for expats.
In this guide
Common Foreign Income Mortgage Scenarios
Why Can It Be Difficult To Get a UK Mortgage as an Expat?
How Much Can Expats Borrow For a UK Mortgage?
Is It Possible To Get an Expat Buy-To-Let Mortgage?
Which Currencies Are Acceptable To UK Mortgage Lenders?
Important Things To Consider Before Applying For An Expat UK Mortgage
What About UK Mortgages For Foreign Nationals?
Common Scenarios You May Find Yourself in When Applying For a Foreign Income Mortgage
You're looking to get a UK mortgage, but it may be difficult to find a lender if:
- You live and work in the UK but are paid in a foreign currency
- You're applying for a joint mortgage, and you or your partner work overseas (flying back to the UK regularly)
- You're living and working abroad, earning in a foreign currency, and want to buy a house in the UK as a buy-to-let
- You're living and working abroad with no plans to return to the UK
See blog: 9 Best Places to Live in the UK if You're an Expat
To access the best mortgage offer, it is highly advisable to seek the advice of a specialist mortgage broker with expertise in dealing with the complexities of foreign income mortgage applications.
Why Can it Be Difficult To Get a UK Mortgage as an Expat?
Mortgage lenders will determine your eligibility for a mortgage based on risk, whether you're a resident of the UK or not. Unfortunately, if you're a non-resident, additional complexities are added to the mix:
- Lenders may be worried about exchange rate fluctuations and their impact on your regular income
- They may find it difficult to identify your employer and obtain all the relevant information they need
- If you've lived abroad for a while, your UK credit score may be poor or untraceable
Related: Buying a House in the UK from Abroad
What Do The Experts Say?
George Abouzolof
Senior Finance Broker CeMAP
In my experience as a specialist mortgage adviser, here are some of the key factors that UK lenders take into account for Skilled Worker mortgage applications:
- How long you’ve been in the UK
- Your credit history
- How much deposit you have
Interest rates can vary on a case-by-case basis, and a good broker can use their knowledge of the market to find the best deals for you.
How Much Can Expats Borrow For a UK Mortgage?
As with any mortgage application, you'll need to prove the affordability of your repayments. Most expat mortgage lenders work on a loan-to-value ratio (LTV) of 75%. Some will go to as much as 95%.
The actual amount you can borrow will of course, depend on other factors such as your employment history, any other debt, your total outgoings, and your number of financial dependents.
An independent expat mortgage broker is best placed to advise you on the best lender to approach based on your circumstances and your deposit.
2 Year Tracker Subsequent rate 6.99% LTV - 60% Product Fee £999 Free standard valuation Early Redemption Charges As of 10th January 2024 5 Year Fixed (Remortgage) Subsequent rate 6.99% LTV - 60% Product Fee £999 Free standard valuation Early redemption charges As at 10th January 2024 2 Year Fixed (Purchase) Subsequent rate 6.99% LTV - Up to 60% Product Fee £999 Free standard valuation Early redemption charges As at 10th January 2024 Thank You for your interest - please complete the form below and a member of our team will be in contact.Expat - UK Residential
2 Year Tracker
4.94% APR
APRC 8.4%*
Expat - UK Residential
5 Year Fixed
4.69% APR
APRC 6.2%*
Expat - UK Residential
2 Year Fixed
4.99% APR
APRC 7.1%*
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Is it Possible To Get An Expat Buy-To-Let Mortgage?
If you live overseas and you're considering buying an investment property to earn a rental income, the short answer is YES, it's possible to do this.
Typically, traditional lenders will ask for a large deposit for a buy-to-let mortgage, sometimes as much as 35% of the property's value.
In contrast, some lenders, accessible through an independent mortgage broker, are prepared to take deposits of 25% or lower if they're satisfied with your profile and personal circumstances.
Which Currencies Are Accepted By UK Mortgage Lenders?
It is possible to get a UK mortgage based on income from the following currencies:
- Euro
- Yen
- Chinese Yuan
- Saudi Riyals
- UAE Dirham
- Hong Kong Dollar
Important Things To Consider Before Applying For An Expat UK Mortgage
Proof of income
One of the biggest hurdles you will face when applying for a foreign currency UK mortgage is providing proof of your income.
The documents that you have to provide will vary from lender to lender. However, as a rule of thumb, you should expect to submit the following:
- Your employer's details
- Several months' payslips
- Information regarding the property you want to buy
- Personal details including proof of address
- A letter from an accountant and tax returns (if you are self-employed)
Documents in foreign languages
Some lenders are willing to accept documents in a foreign language, but most require your documents to be written in English.
If your documents are in a foreign language, you must have them translated into English. Unfortunately, even if you are fluent in a foreign language, a professional translator must complete the translated document (with the appropriate credentials).
Once the lender sees the original documents, translated documents and the translator's credentials, the original documents can be returned.
In the past, we helped a British expat secure their home against rental income in Cayman Island Dollars. Watch the video below to find out more.
What About UK Mortgages For Foreign Nationals?
Most lenders that offer mortgages to foreign nationals restrict their service to those with permanent residency, also known as indefinite leave to stay.
If you are an EU citizen or foreign national, then you will need to meet the following criteria to secure permanent residency:
- You have been resident in the EU for more than three years
- You have a UK bank account
- You have a permanent job in the UK
If you are a non-EU citizen or foreign national, then you will need the following:
- To have a permanent job in the UK
- A UK bank account
Some international clients we've helped recently:
Secure An Expat Mortgage
- Mortgage advice specialists understand that every expat application is different and should be reviewed individually rather than required to meet predetermined conditions.
- An independent broker can potentially secure you a higher Loan-to-Value
- We have the resources to put you in touch with specialist lenders who are not constrained by the PRA regulations and the effects of the MCD (read more here)
- Our brokers can relieve you from all the hassle of finding the most suitable lender, do the leg work for you and be able to arrange the best financial solution for your circumstances.
To speak further about your expat mortgage options, get in touch with us to arrange a no-obligation initial conversation with one of our specialist expat mortgage brokers.
Please call our mortgage expat team on +44 203 900 4322 or book a callback into our diary at a time that suits you.
