Foreign nationals non-UK resident
A foreign national is defined as someone who is not a naturlized citizen of the U.K, whether they live in the country or overseas. The application process for foreign nationals will differ to that of a citizen already living in the U.K.
The good news is that foreign nationals who are non -UK resident are also able to obtain mortgages. Finbud works with hundreds of lenders and is therefore able to arrange mortgages for individuals from the majority of countries.
As a first step, you will need to provide proof of your identity, place of residence, income and assets. Documentation will need to be translated into the English Language if they are not in English. Then it’s over to us to create an application, which will get you the best terms on a mortgage for a property for you to live in or let.
You will need to provide pay slips and bank statements but again what is required will vary from lender to lender. Obviously the more income available, the more that the lender will want to lend.
In some cases, you may have complex financial history or you may receive income from multiple sources, countries or in different currencies. Finbud will work hard to help you to offset any negative inferences Mortgage lenders may make by perhaps using your accountants or obtaining references.
We may also arrange mortgages in the U.K. without detailed evidence of income as long as we may have some other proof, which may be sufficient such as assets under management or other structures.
If you are a purchasing a property in the UK with the aim of renting it out, then the rental income alone may be sufficient enough to cover affordability.
What about if you are self-employed?
Again, lenders will still need to see evidence of income (ideally 2 years of accounts) and it is important that an internationally recognized accountant is able to do your accounts as this will provide greater confidence and assurance to the lender. It may be harder to get a mortgage if you have just recently become self-employed.
How much can I borrow as a foreign national?
This will depend on the size of deposit you have available, your income assessment, the mortgage interest rate and term as well as any rental calculations if you are considering a buy to let property.
Do foreign nationals need to pay stamp duty?
Currently, non-resident buyers of property pay the same stamp duty rate as people living in the U.K. However, foreign buyers could, in future, be forced to pay a higher stamp duty rate as this has been something that was under consideration. Any additional amount payable would only apply to those who have spent fewer than 183 days in the U.K. just before they buy a property.
Will U.K. lenders want to know about the source of funds?
Yes-lenders will want detailed evidence on the source of funds for your mortgage application. They will want to know where the deposit is coming from and from where you will be making the mortgage re-payments or interest payments. This is part of due diligence checks that a lender will carry out before deciding to lend to you.
How will my income be assessed?
As a foreign national, your money will be in your own currency. As such, the income assessment carried out by the lender may take more time than a regular mortgage.. But the lender will also take into consideration your employment status. For example if you work in an international organization and your income is easy to prove then a lender will feel more assured than other more obscure forms of income.
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