General information only. This guide explains how UK lenders usually approach Chinese nationals. It is not advice and not an offer of lending. Every lender has its own criteria, and they change often, so speak to a mortgage adviser before making any decision. 阅读中文版
The short answer
Being a Chinese national does not stop you getting a UK mortgage. What changes is who will lend to you and on what terms.
Most UK high street banks either decline applicants who live overseas or only help existing customers. For Chinese nationals living in China, the market is made up of specialist expat and foreign national lenders, the international arms of UK banks and some private banks. If you already live and work in the UK, more lenders are open to you. In both cases lenders look closely at your residence status, your income, your deposit and where that deposit came from.
This guide is for Chinese nationals from mainland China. If you live in Hong Kong, read our guide to UK mortgages for Hong Kong residents, which is also available in Chinese.
Where you live makes a difference
- Living in mainland China. A smaller group of lenders will consider you. Buy-to-let and buying for a child at university are often the easiest routes, and lenders will want to see a clear trail for your deposit and income.
- Living in the UK. If you work in the UK on a visa, such as a Skilled Worker or Global Talent visa, or you have settled status, you can apply to many more lenders, often with UK salary and UK bank statements. Some lenders want a minimum time left on your visa or a minimum time living in the UK. With indefinite leave to remain, most lenders treat you much like a UK citizen.
- Living elsewhere, for example the Gulf. Lenders look at your country of residence and the currency you are paid in as well as your nationality. Our guides to getting a UK mortgage while living in the Gulf and to Gulf currency income explain how that works.
How lenders treat Chinese nationals
UK lenders have separate criteria for foreign nationals, meaning anyone who is not a British or Irish citizen. These can include a larger deposit, a higher minimum income or a list of nationalities and countries of residence they accept. Some lenders limit the nationalities they will lend to, so the choice of lender depends on your nationality and where you live, not only on your income.
For a home you will live in yourself, many lenders ask for a UK visa or other right to live in the UK. You do not need a UK visa to buy a property, so buy-to-let, or a home for a family member, is often more straightforward for a buyer living in China.
Income in Chinese yuan
A UK mortgage is lent and repaid in pounds, so the lender converts your income into sterling and often reduces it, commonly by 10% to 25%, to allow for exchange rate movements. Fewer lenders accept income paid in Chinese yuan (CNY, also called renminbi) than income in US dollars, Hong Kong dollars or sterling, so if part of your pay is in another currency, it can widen your choice.
Lenders work from your gross income and will want to see it in your payslips, bank statements and tax records. Bonuses and allowances are counted in full, in part or not at all depending on the lender. If you own a business in China, some lenders will consider you, normally with at least two years of trading, company accounts and your personal tax records.
Where income is paid in a foreign currency, changes in exchange rates may affect the amount you need to repay in sterling. For a mortgage on a home you or your family will live in, the lender must also have arrangements to limit that risk and must warn you if movements change what you owe or your payments by more than 20%.
Getting your deposit to the UK
Mainland China's foreign exchange rules limit how much money an individual can convert and move abroad each year. This often means a deposit cannot be sent to the UK in one go, so plan how it will reach the UK early, well before you make an offer on a property.
UK lenders and solicitors must check where your money comes from, and they check funds from China closely. Expect to show how the money was earned or built up, how it left China and the account it arrived in. Use only official banking channels. Money moved through informal routes, or split across friends' or relatives' accounts, can be refused by a lender or a solicitor and can delay or stop a purchase.
Many Chinese buyers receive help from their parents. Many lenders accept a gifted deposit from a close family member for a home you will live in, with a signed gift letter and evidence of the parents' funds. Fewer accept gifts for buy-to-let.
Deposit and how much you can borrow
Most lenders for foreign nationals lend up to 75% of the property value, so plan for a deposit of at least 25%. Some ask for 30% or more for buyers living in China, first-time buyers, self-employed applicants, new build flats or high value properties. If you live in the UK with settled status, higher loan to value mortgages may be available.
For a home you will live in, many lenders use around 4.5 times your income as a guide, after they have converted it into pounds and applied any currency reduction. They also look at your commitments, including rent, any mortgage in China and car loans, so the actual amount offered can be lower.
See your own figures. Our expat mortgage calculator gives a guide to how much you could borrow and what it would cost each month in pounds.
Credit history
UK lenders usually cannot see your credit history in China, so a good record there does not carry across automatically. Some lenders ask for a credit report from your home country, and most will run a UK credit search. If you have lived or studied in the UK, a UK bank account, a UK address history and a credit card used and cleared each month all help.
Buy-to-let and buying for your children
Buy-to-let. For a buy-to-let mortgage, the loan is based mainly on the rent, which is paid in pounds. Lenders test that the rent covers the interest at a stress rate, usually by 145% for individuals and 125% for limited companies, so buy-to-let has more lenders available to buyers living in China than mortgages for your own home. Many lenders still set a minimum personal income. Some investors buy through a UK limited company, which has different lenders, costs and tax treatment.
Rental income from a UK property is usually taxable in the UK even if you live overseas, and landlords overseas normally register under the Non-Resident Landlord Scheme. You may also have to report the income in China or where you live. Tax depends on your circumstances, so speak to a tax adviser.
Buying for a child at university. Many parents buy a flat for a son or daughter studying in the UK, sometimes letting spare rooms to other students. Some lenders treat this as a home for a family member and others as buy-to-let, and fewer lenders offer it than ordinary buy-to-let. Whose name the property is in affects the lenders available, the stamp duty and what happens when your child finishes studying, so decide this before you apply.
Remortgaging. If you already own a UK property, you can remortgage to a new rate or release equity from overseas. Our guide to remortgaging a UK property while living abroad explains the options.
Stamp duty for Chinese nationals
In England and Northern Ireland, buyers who are not UK resident pay a 2% surcharge on top of the standard Stamp Duty Land Tax rates. You are usually treated as non-UK resident if you were in the UK for fewer than 183 days in the 12 months before you buy. Residence is what counts, not nationality, so a Chinese national living in the UK may not pay it.
Anyone who already owns a residential property anywhere in the world, and is not replacing their main home, also pays a further 5%. Owning a flat in China counts.
First-time buyer relief can still apply to non-UK residents, with the 2% surcharge added on top. It is only available if every buyer has never owned a home anywhere in the world, you intend to live in the property as your only or main home and the price is £500,000 or less. Here is how that works for a £400,000 home bought by a non-UK resident:
| £400,000 home | First-time buyer who will live in it | Owns a home in China |
|---|---|---|
| Standard or first-time buyer rates | £5,000 | £10,000 |
| 2% non-resident surcharge | £8,000 | £8,000 |
| 5% additional property surcharge | None | £20,000 |
| Total, about | £13,000 | £38,000 |
Scotland and Wales have their own taxes and rates. Your solicitor calculates and confirms the final figure.
Plan your budget. Our stamp duty and buying costs calculator adds up your deposit, stamp duty and fees in one figure, including the non-resident and additional property surcharges.
The documents you will need
Lenders and solicitors must check who you are, where you live and where your money comes from. A typical list is:
- Passport, plus your Chinese resident identity card, and your UK visa or eVisa details if you live in the UK
- Proof of your address, such as a recent utility bill, a tenancy agreement or a bank statement
- Employment contract or a letter from your employer confirming your role and salary
- Three to six months of payslips and bank statements showing your salary paid in
- Your individual income tax records
- For business owners, your business licence, at least two years of company accounts and your personal tax records
- Proof of your deposit and its source, including how it was transferred from China, and a gift letter if your family is helping
- Details of any UK property you own, and of your existing mortgage if you are remortgaging
Documents in Chinese will usually need a certified English translation. Most of the process can be handled remotely, with electronic signing and video calls. China is eight hours ahead of the UK in winter and seven hours ahead in summer.
Before you apply
- Start the deposit transfer early and keep every statement and transfer record.
- Decide whose name the property will be in, especially if you are buying for a child.
- Count your property in China. If you own a home there, include the 5% additional property surcharge in your budget.
- Leave room for the exchange rate. Borrowing at the very top of what you could afford today leaves little margin if the pound strengthens.
- Avoid applying to several lenders yourself. Each application leaves a mark on your credit file. A Decision in Principle from a lender that accepts your nationality and residence tells you where you stand first.
For more on our service, see our page for expats and buyers in China.
Talk it through with an adviser
Every lender treats Chinese nationals differently, so the figures in this guide are a starting point, not an answer. Speak to a specialist UK expat mortgage adviser who will check which lenders suit your residence, currency, income and plans, and can arrange a Decision in Principle, usually within 24 to 48 hours. The first consultation is free.