How to get a mortgage in the UK as a foreigner?

Just moved to the UK and want to buy your own home? Before you can start house hunting, you’ll likely need to apply for a mortgage in order to fund your purchase.

In this comprehensive guide, we’ll run through everything you need to know about getting a mortgage in the UK as a foreign national. This includes the documents you’ll need, how easy/difficult the process is and some UK banks and lenders to check out.

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Table of contents

Can you get a mortgage in the UK as a non-resident? Getting a mortgage in the UK after Brexit Mortgage eligibility criteria for non-residents in the UK Is it easy to get a mortgage in the UK? Step by step guide on how to apply for a UK mortgage as a foreigner Which documents do you need as a non-resident? How long does it take to get a mortgage in the UK? Fees and costs for getting a mortgage in the UK Booking fees Mortgage arrangement fees Valuation fees Other fees and costs UK banks or lenders offering mortgages to foreigners Mortgage rates in the UK Do banks offer Buy-to-Let (BTL) mortgages in the UK? Remortgaging in the UK Types of mortgages in the UK Fixed-rate mortgages Tracker mortgages Standard variable rate (SVR) mortgages Capital repayment and interest-only mortgages Final tips for getting a mortgage in the UK as a non-resident Send the down payment and mortgage fees from abroad with Wise and save money

Can you get a mortgage in the UK as a non-resident?

It’s much easier to get a UK mortgage if you’ve moved there, whether it’s to work, start a business, be with family or retire.

The good news though is that it is possible to get a mortgage in the UK if you’re not living there, but there are likely to be restrictions involved.

For example, banks like HSBC will only offer residential mortgages to non-UK residents if they live in countries where the bank operates. This includes the USA, Singapore, Australia, Hong Kong or the UAE among others.¹

Other lenders like Skipton Building Society (via its international arm) only offer Buy-to-Let mortgages to non-residents.²

In most cases, you’ll find that the requirements for application are more rigorous than for UK nationals and residents. For example, you may need a minimum income, extensive proof of funds and/or evidence that you can speak a proficient level of English.¹ We’ll cover this in more detail shortly.

Getting a mortgage in the UK after Brexit

For citizens of many countries, the UK leaving the European Union (EU) has made little to no difference to the process of getting a mortgage for foreigners in the UK.

However, it has made it more complex for EU nationals. Since Brexit, the rules require mortgage lenders to see evidence of ‘settled’ status under the EU settlement scheme. This is granted when an EU national has lived in the UK for a continuous five-year period.³

In some cases though, lenders will accept applications from people who’ve lived in the UK for at least three years.⁴

So, you’ll need to check the requirements for your chosen mortgage lender, to make sure you’re eligible to apply.

Mortgage eligibility criteria for non-residents in the UK

The criteria for mortgage applications will vary between lenders. But generally speaking, you may need to meet the following requirements:¹

• Be at least 18 years old
• Are a resident of a particular country (for example, HSBC accepts applications for residents of countries where it operates)
• Have a minimum basic income (for HSBC, this is the currency equivalent of at least £75,000)
• Have a minimum deposit (i.e. 25%)
• Be able to demonstrate that you speak proficient English.

Is it easy to get a mortgage in the UK?

If you meet the criteria, getting a mortgage in the UK can be relatively straightforward. Be prepared for plenty of paperwork though, along with detailed questions about your income and spending habits.

However, there are some challenges that can make it more difficult. For example, you might not be able to get a mortgage if you have a poor credit history, an unbalanced debt-to-income ratio or gaps in your employment history. Self-employed people sometimes struggle to secure a mortgage.

And for foreign nationals, there may be other obstacles to overcome. You may not have enough of a credit history in the UK, or meet other requirements such as minimum salary or deposit. You might need to show more documentation, or be asked for extra information - which can slow down the process.

There may also be the complication of your documents being in another language, where they need to be translated and certified.

Step by step guide on how to apply for a UK mortgage as a foreigner

To give you an idea of what to expect, here’s a step-by-step look at the process of applying for a UK mortgage as a foreign national:

1. Decide if you want to use a broker to explore your options for a UK mortgage.
2. Alternatively, choose a bank or lender with a mortgage that suits your needs.
3. Hand over the paperwork requested and get an offer in principle. This is also known as an Agreement in Principle or AIP. It essentially means the lender is willing to lend to you ‘in principle’, subject to approval and final checks of the property you intend to buy. You may need to show this to estate agents in order to arrange property viewings or submit offers.
4. Find a property within your budget and agree on a purchase price with the seller
5. Apply for your mortgage formally. This involves submitting a full application along with your supporting documents.
6. The lender will verify your information and may carry out their own valuation of the property you’re buying (there may be a fee for this).
7. If your application is successful, you’ll receive a formal mortgage offer. This is usually time limited, so you’ll need to complete your purchase within around 6 months.⁵
8. Read the details and terms and conditions carefully before accepting the offer.

Once this is done, you can get on with buying your property in the UK. This means appointing a solicitor for the legal work, commissioning a building survey and agreeing a completion date. On this date, the mortgage funds will be paid and you’ll become liable for the mortgage repayments.

💡 Read more: Taking cash in or out of the UK: What are the rules?

Which documents do you need as a non-resident?

The exact documents you’ll need to apply for a UK mortgage as a non-resident will vary between lenders. But here’s an idea of what you’re likely to need:⁶

• Proof of identity - such as your passport or national identity card
• Proof of income/earnings - such as pay slips, tax returns, and employment contracts. Self-employed people may need to provide additional financial records, such as accounts or tax returns dating back several years.
• Proof of employment
• UK bank account statements dating back at least 3 months
• UK credit history records (if any)
• Proof of deposit

If applicable, you might also need to provide your visa or biometric residence permit.

How long does it take to get a mortgage in the UK?

On average, it takes around 2 to 6 weeks to get a formal mortgage offer after submitting your application.⁷

Fees and costs for getting a mortgage in the UK

Applying for a UK mortgage comes with a few different fees. The main ones to know about are booking fees, arrangement fees and valuation fees.

Booking fees

This is a fee sometimes charged by lenders to ‘reserve’ the mortgage deal. It’s not always charged, and some lenders include it in the arrangement fee instead.

If there is a booking fee, it’ll be charged on application and is usually non-refundable. It’s typically around £99 to £300.⁸

Mortgage arrangement fees

Also known as the product fee or completion fee, it’s the main fee for taking out the mortgage. It’s charged on completion, and can either be paid upfront or added to your mortgage balance. It can be anywhere up to £2,000, although some mortgages don’t have any arrangement fee.⁸

Valuation fees

If the mortgage company needs to carry out a valuation of the property, they may charge a valuation fee of around £250 to £1,500.⁸ The exact fee may depend on the value of the property. It’s important to note that this valuation survey only looks at the value of the property, and won’t identify any structural, maintenance or other issues. You’ll need to commission your own building survey for that.

Other fees and costs

You may also encounter some of these other charges when applying for a UK mortgage:

• Broker fees (if you’re using a broker) of around £300 to £500
• Telegraphic transfer or CHAPS fee for the lender to transfer the money to your solicitor - this is usually around £25 to £50.⁸
• Transfer fees - if you need to make payments between countries to pay the down payment or the fees above, you may incur fees.

UK banks or lenders offering mortgages to foreigners

All major banks and building societies in the UK offer mortgage products, but they might not all have a service suitable for expats, or non-residents.

It’s worth checking out the products offered, as they come with fairly strict terms and conditions.

Ultimately, the decision about who is eligible for a mortgage or home loan is made by the institution. It’s worth calling into the local branch of banks which you’re interested in, for a chat about which products might suit you - or enlist a broker to help.

You might be able to get a local mortgage with one of the following banks:

• HSBC – A global banking brand which offers residential and buy-to-let mortgages for non-residents and new arrivals.
• Barclays – One of the UK’s biggest banks, Barclays has a service dedicated to non-resident investors, looking to buy a property in the UK
• NatWest – A major British bank, NatWest can offer UK mortgages to residents of certain countries looking to buy in the UK
• Skipton International – The international arm of Skipton Building Society, which has a specific buy-to-let product for expats investing in the UK

💡 Read more: How to transfer large sums of money between bank accounts?

Mortgage rates in the UK

Here’s a quick look at average mortgage interest rates in the UK, including rates for non-resident mortgages:

Mortgage type	Average rate (as of August 2024)
Five-year fixed mortgage	4.74%⁹
Two-year fixed mortgage	5.10%⁹
Non-resident fixed mortgages (based on 75% Maximum Loan to Value (LTV) with HSBC)	4.55% to 5.39%¹

These rates are accurate at the time of writing (04/09/24) but they change regularly - so you’ll need to check the updated rates when you’re ready to apply for your mortgage. The rate you’re offered will also depend on your circumstances and eligibility, the amount you’re borrowing and how much of a deposit you have.

Do banks offer Buy-to-Let (BTL) mortgages in the UK?

Yes, a number of banks in the UK offer Buy-to-Let mortgages. These are mortgages designed specifically for buying UK property as an investment, which you intend to rent out to tenants.

You’ll find that major banks such as HSBC and NatWest offer Buy-to-Let mortgages to non-residents looking to invest in UK property, along with other lenders such as Skipton International.

Remortgaging in the UK

It’s also possible to refinance a mortgage in the UK, which is known as ‘remortgaging’. You may want to do this to get a new mortgage once a fixed-term mortgage has ended, or to get better interest rates once you’ve built up equity in your home.

Remortgaging can also help you borrow more money, such as to fund another property purchase without having to sell your first property. You’ll just need to make sure you can afford the repayments and aren’t overstretching yourself.

Types of mortgages in the UK

There are a few different mortgage types available in the UK, and it’s important to choose the right one for your circumstances.

The main types to know about are - fixed-rate mortgages, tracker mortgages and standard variable rate (SVR) mortgages. Additionally, there are different ways to repay, including capital repayment and interest-only options.

Fixed-rate mortgages

A fixed-rate mortgage has a fixed interest rate for a set period, which in the UK is usually 2, 3 or 5 years. This means you’ll know exactly how much you’re repaying each month.

Once the fixed term ends, you’ll be automatically moved onto a variable interest rate. At this point though, you can choose to remortgage - either with the same lender or an alternative.

Tracker mortgages

Tracker mortgages in the UK have an interest rate which rises or falls in line with the Bank of England’s Base Rate. It’s usually the Base Rate, plus a margin added by the lender.

Standard variable rate (SVR) mortgages

This type of mortgage is what you’ll be switched to when a fixed term mortgage ends. It has a variable interest rate, decided by the lender and which can change at any time.

Capital repayment and interest-only mortgages

There are also mortgages which vary based on the way you make repayments. Capital repayment is where you pay the amount you’ve borrowed plus interest, while interest-only is where you just pay off the interest.

Final tips for getting a mortgage in the UK as a non-resident

To stand the best chance of getting accepted for a UK mortgage as a non-resident, bear these tips in mind:

• Try to build up a credit file or some form of financial footprint in the UK, such as opening a UK bank account. This may mean you need to wait until you’ve moved to the UK.
• Ensure you have a large enough deposit
• Get tailored advice about suitable mortgage products for non-residents and foreign applicants
• Make sure you have all your documentation in order, especially relating to income, employment and savings. Ensure it’s translated into English if in another language.

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Sources used:

1. HSBC - Mortgages for non-UK residents/new to UK
2. Skipton International - Non-resident UK mortgage
3. Altura Mortgage Finance - EU nationals and mortgages post Brexit – what you need to know about proving your residency status
4. Haysto - Post-Brexit Mortgages for EU Nationals
5. Mortgageable - Mortgage Application Process & Steps UK
6. Prosperity Wealth - Essential Tips for Securing Mortgages for Non UK Residents
7. Lloyds Bank - How Long Does it Take to Get a Mortgage
8. MoneyHelper - Mortgage-related fees and costs
9. Rightmove - What are the current UK mortgage rates?

Sources last checked on date: 04-Sep-2024