Foreign National Mortgages FAQs

If you live in the UK but get paid in a foreign currency, you are not alone. The scenario is surprisingly common, but it can still create significant challenges when applying for a mortgage, particularly if you receive large bonuses that could influence how much you can borrow or the cost of your mortgage.

I am a UK citizen/resident, but my income is in a foreign currency. Can I get a UK mortgage?

Lenders used to be more flexible when it came to foreign income, but following the introduction of the Mortgage Credit Directive in 2016, many lenders withdrew from lending in this situation. Today, this means that a large number of mainstream lenders will not accept borrowers with foreign currency income.

In this kind of situation, the risk is that you apply to several lenders only to be told that none of them can accommodate you because you have foreign income. The process can quickly become frustrating and time-consuming, all while the property you want to buy remains on the market and you are left unable to proceed.

Enness regularly assists clients with foreign currency income in securing competitive UK mortgages. Your broker will know which lenders can accommodate this type of application and can source and negotiate a mortgage for you quickly and with minimal hassle.

I live outside of the UK, and/or I’m not a UK citizen. Will I be able to get a mortgage to buy property in the UK?

The strength of the UK property market – particularly London – means that this is not an unusual scenario. However, despite strong demand, obtaining a mortgage for UK property while living outside the UK can be complicated, as lenders often consider this a complex situation.

Many lenders will be hesitant to lend if you are not a UK national and live abroad, regardless of your net worth. It can be marginally easier to obtain a mortgage if you are an expat – meaning you live abroad but retain UK nationality – but the process can still be far from straightforward if you are applying for a mortgage without specialist support.

Regardless of whether you are a UK national or not, if you live abroad, a mortgage application is likely to be paper-heavy and time-consuming. Lenders may take considerable time to review and assess your application, and there is no guarantee that they will accept it. The higher the value of your mortgage, the more difficult it can be to find suitable financing.

Ultimately, you need a lender that understands and is willing to accept:

• The currency you are paid in
• Your residency and nationality
• Your global assets and wealth

Enness regularly works with foreign property investors, expats and other individuals who want to purchase UK real estate while living outside the UK. Some lenders can accommodate this, particularly international banks that are accustomed to dealing with international clients with global assets.

I want to buy property in the UK, but I’m self-employed in another country and earn a foreign currency. What are my options?

This can be one of the more challenging scenarios when it comes to borrowing. Lenders can view self-employment as inherently more complex than employed income, regardless of how much you earn or how stable your income is. Adding foreign residency and foreign currency income to the picture can make the application more difficult for many lenders.

Enness works with many self-employed clients, and there is often little reason why you should not be able to borrow a significant amount to purchase a high-value property. Many of Enness’ international clients are self-employed, have regular and substantial income, and have accumulated significant net worth.

If you are self-employed abroad and have a robust financial position, securing a mortgage in this scenario is usually about finding a lender that can accommodate this level of complexity and then presenting your application in the strongest possible way.

To this end, your broker will start by understanding your company structure and tax position. This will usually involve reviewing your company accounts and/or tax returns. Your broker can then approach niche, alternative or specialist lenders to identify suitable options and negotiate the most competitive deal available.

Despite the complexity of your situation, Enness can help you navigate the application process efficiently and identify lenders that are able to consider your circumstances.