Buying a Property in the UK as a Foreign National Resident
For many foreign nationals who have moved to the UK, buying a property is one of the most important steps in settling down. While the process is similar to that of British citizens, there are key differences when it comes to proving income, using overseas earnings, and planning for additional costs.
This guide explains what you need to know if you’re a foreign national living in the UK and looking to buy your first home or investment property.
Who Can Buy a Property in the UK?
Foreign nationals who are legally resident in the UK can purchase property. This includes:
Skilled Worker visa holders and other long-term work visas
Spouse/partner visa holders
EU/EEA citizens with pre-settled or settled status
Students or professionals with established residency
Lenders will check your visa type, length of residency, and overall financial stability before making a mortgage offer.
Using UK vs Overseas Income
UK Income
If you are employed or self-employed in the UK, your income is usually treated the same way as a British citizen’s. Expect to provide:
3 months’ payslips and a recent P60 (if employed)
1–2 years of tax returns and business accounts (if self-employed)
This is the most straightforward route to securing a mortgage, giving you access to more lenders and competitive rates.
Overseas Income
If you want to rely on income earned abroad—such as salary, rental income, or dividends—lenders apply stricter rules. This may include:
Fewer lender options (not all accept foreign income)
Exchange rate checks to test affordability in GBP
Certified translations of documents such as payslips or tax returns
Using overseas income can make the process longer and sometimes more expensive, but it’s still possible with the right preparation.
What Costs Should You Expect?
When buying a property in the UK, foreign nationals should budget for:
Stamp Duty Land Tax (SDLT): If you’re classed as a UK tax resident, you pay the same SDLT as British citizens. Non-residents may face a 2% surcharge.
Legal fees: Typically £1,000–£2,000+, depending on the property.
Mortgage fees: Arrangement fees, broker fees, and lender valuation costs.
Translation & certification: If you use overseas documents, these must often be translated and certified.
Survey costs: Optional but recommended to assess the property’s condition.
Ongoing costs: Buildings insurance, service charges (for leasehold), and council tax.
Tips for a Smooth Buying Process
✅ Build your UK credit history early (bank account, bills, credit card usage).
✅ Save a larger deposit (10–25% is common for foreign nationals).
✅ Gather documents in advance, especially if overseas income is involved.
✅ Work with a specialist mortgage broker to access the right lenders.
Final Thoughts
Buying a property in the UK as a foreign national resident is absolutely achievable. The biggest consideration is how your income is structured: UK income makes the process smoother, while overseas income requires more checks but can still be accepted.
With the right planning and professional advice, you can secure a mortgage, prepare for the extra costs, and take the next step toward making the UK your long-term home.
How Dream Casa Can Help
At Dream Casa Mortgage Consultancy, we specialise in helping foreign nationals and non-UK citizens living in the UK secure their first homes, remortgages, and buy-to-let properties. We understand the challenges of proving income—whether UK-based or overseas—and can guide you through lender requirements, costs, and the buying process from start to finish.