Updated: December 10, 2021

Getting a UK Mortgage With Foreign Income

Looking for a mortgage based on foriegn income? The brokers we work with can help you make this possible.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: December 10, 2021

Are you trying to get a mortgage with income earned from foreign sources? There are many things you should know before starting the process.

We’ll go over some of the most important things that potential borrowers need to know, including the rules around translating documents, which currencies UK banks accept, and where international buyers should start their search for a lender.

Can you get a UK mortgage based on a foreign income?

Yes. Despite restrictions on foreign currency mortgages – there are still ways to get a mortgage for UK property if you know which mortgage lender will provide the most favourable terms and interest rates for your situation.

However, the lenders which provide foreign currency mortgages usually work exclusively through specialist brokers. And the process of securing a mortgage may vary depending on which foreign currency you receive your income in. So if you need a foreign income mortgage, we can help make the process smoother, easier, and cheaper by connecting you with the right mortgage broker.

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Eligibility requirements for foreign income applicants

First of all, are you UK-based? Most lenders require mortgage applicants to have permanent residency – or indefinite leave – in the UK. Whether you’re an EU citizen or a foreign national, below are some boxes you’ll need to tick to qualify for permanent residency.

EU nationals

  • Proof of residency in the EU for over 3 years
  • Have a UK bank account
  • Have a permanent job in the UK

Non-EU foreign nationals

  • Have a UK bank account
  • Have lived in the UK for 2-5 years
  • Have a permanent job in the UK

How to provide proof of foreign income

One of the biggest hurdles that you will face in the application process for a foreign currency UK mortgage is providing proof of your income.

If you’re looking for lenders who are willing to consider approving your foreign income loan application, be prepared to provide documents which prove your source of income.

Preparing your paperwork

The documents you need to provide will vary by lender, but they’re generally no different to the paperwork you’d need to make an application in with pound sterling income.

Most lenders will ask for the following…

  • Several months’ of your latest payslips
  • Proof of address
  • Employer’s details
  • If you’re self employed – tax returns and a statement from an accountant

Translating your documents

If your documents are in a foreign language, most mortgage lenders will require that you translate them into English through a certified source.

Therefore, when it comes to translating your documents, you will be required to use a professional, qualified translator. The lender will need to see both original-language documents and the translated documents and the translator’s credentials.

Types of currency that UK mortgage lenders accept

Most UK lenders have restrictions on the type of foreign currency they accept, so if you’re looking to finance a property purchase in the UK, it’s important you find a lender who will accept your type of foreign income currency.

The currencies below are more commonly accepted by UK mortgage lenders:

  • US Dollars (USD)
  • Euro (EUR)
  • Yen (JPY)
  • Australian Dollar (AUD)
  • Polish Zloty (ZL)
  • Russian Ruble (RUB)

But even if your foreign income doesn’t fall into one of these categories, a mortgage broker may be able to help you access lenders with more flexible currency criteria.

How foreign tax payment impacts your application

Many lenders require that you pay taxes in the UK, even if you earn a foreign income, in order to approve your loan application. So if you pay taxes overseas, you must ensure that any tax due in the UK is fully paid and adhered to. And if your income is earned tax-free abroad, you may need to evidence the income earned and tax paid in the UK.

Deposit Requirements

The minimum amount of deposit you’ll need with most mortgage lenders is 10% of the property’s value, but putting down more (if possible) can help you get approved. Speaking to a mortgage broker is essential if you hope to be approved with less than 10% deposit.

If you receive a foreign income, your mortgage deposit may also be held in an overseas bank. If the bank has restrictions on how they transfer your deposit or what currency they pay out with, this could make it more difficult to adhere to a UK bank’s deposit requirements. If, however, that’s not the case then simply ensure there is a clear audit trail leading through the stages of building up the funds. If the bank doesn’t have UK branches there may be anti-money laundering checks.

Speak to a broker who specialises in foreign income mortgages

If you’ve been searching for a mortgage based on foreign income, but have found it hard to cut through the jargon and understand which lender will give you the best deal, then we are here to help! There are lenders willing to work with your international income, but it’s best to go through an expert broker in order to find the right lender for your specific foreign income situation.

We can help you to connect with the right broker who will take care of everything from finding the right mortgage provider for your situation to getting pre-approval on that loan.

Our service is simple, fast and free – an initial conversation with the broker we match you with carries no obligation to take things further.

Get started by contacting us today on 0808 189 0463 or making an enquiry.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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