How To Get A UK Mortgage With A Foreign Income

Whether you're working abroad with aims to return to the UK, or you're a British resident earning in a non-sterling currency, getting a UK mortgage with a foreign income can come with its challenges.

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?

What do the experts say?

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?

How we can help

Looking for an expat UK mortgage with foreign income? Common Scenarios you may find yourself in

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 over
• rseas (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.

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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 rating may be poor or untraceable

What do the experts say?

This year there have been significantly more hoops to jump through regarding employment verification, in turn making the due diligence process lengthier.  

But despite the additional paperwork, there are products on the market catering to expats. 

We’re also seeing lenders reduce their rates gradually. The expat market is fairly static, but we have seen a slight decrease in rates for expat mortgages, and more lenders are offering expat mortgages for limited companies to keep up with the demand. 

Carly Cheeseman
Head of International, Clifton Private Finance

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 debts, 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.

Is it possible to get an expat buy-to-let mortgage?

The short answer to this is YES.

Typically, traditional lenders will ask for a substantial deposit for a buy-to-let mortgage, sometimes 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 acceptable to UK mortgage lenders?

It is possible to get a UK mortgage based on income from the following countries around the world:

• Euro 

• US Dollar 

• Yen

• Chinese Yuan

• Saudi Riyals

• UAE Dirham

• Hong Kong Dollar

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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

• To have spent between 2 - 5 years in the UK, depending on your circumstances

How We Can Help

• 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.

Contact Clifton Private Finance to secure your expat mortgage

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.

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