General information only. This guide explains how UK lenders usually approach US citizens buying property in the UK. It is not advice and not an offer of lending, and it does not cover US mortgages. Every lender has its own criteria, and they change often, so speak to a mortgage adviser before making any decision.
The short answer
Being a US citizen 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 Americans living in the USA, 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 every case lenders look at your residence status, your income, your deposit and, because you are American, whether they are set up to lend to US persons.
This guide is about buying property in the UK with a UK mortgage. It applies to US citizens and, in most cases, to green card holders, as UK lenders usually treat both as US persons.
Where you live makes a difference
- Living in the USA. A smaller group of lenders will consider you. Buy-to-let and buying for a child at university are often the easiest routes, and US dollar income is one of the foreign currencies UK lenders accept most widely.
- Living in the UK. If you work in the UK on a visa, such as a Skilled Worker, Global Talent or Senior or Specialist Worker visa, or you have settled status, you can apply to many more lenders, often with UK salary and UK bank statements. With indefinite leave to remain, most lenders treat you much like a UK citizen, although the US person point below still applies.
- 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 US citizens
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 Americans there is an extra step. US rules require banks around the world to identify and report accounts and products held by US persons. Some UK lenders have decided not to take on that reporting, so they do not lend to US citizens at all, or only to those who live in the UK. Others lend to US persons without difficulty. This applies even if you also hold a British passport.
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 the USA.
Income in US dollars
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. The US dollar is one of the most widely accepted foreign currencies, so more lenders consider dollar income than most other currencies.
Lenders work from your gross income and will want to see it in your pay stubs, bank statements and tax returns. Bonuses, commission and share awards are counted in full, in part or not at all depending on the lender.
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%.
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 the USA, 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 the USA, car loans and student loans, so the actual amount offered can be lower.
Lenders and solicitors must check where your deposit comes from. Keep the statements that show how it was earned or saved and how it reached the UK. Many lenders accept a gifted deposit from a close family member for a home you will live in, with a signed gift letter. Fewer accept gifts for buy-to-let.
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 US credit score, so a strong record in the USA does not carry across automatically. Some lenders ask for a credit report from one of the US credit bureaus, 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 the USA than mortgages for your own home. Some investors buy through a UK limited company, which has different lenders, costs and tax treatment, and for a US citizen a foreign company can raise extra US reporting.
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.
Tax on both sides of the Atlantic
US citizens are taxed by the USA on their worldwide income wherever they live, so UK rental income and any gain when you sell will usually need to be reported in the USA as well as in the UK. 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. Non-UK residents must also report every sale of UK property to HMRC within 60 days of completion.
Because your mortgage is in pounds, US tax rules can also treat exchange rate movements on the loan in ways that surprise buyers. How the two systems interact depends on your circumstances, so speak to a tax adviser who knows both UK and US tax before you buy.
Stamp duty for USA 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 US citizen 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 home in the USA 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 the USA |
|---|---|---|
| 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:
- US passport, plus your UK visa or eVisa details if you live in the UK
- Proof of your address, such as a recent utility bill, a lease or a bank statement
- Employment contract or a letter from your employer confirming your role and salary
- Three to six months of pay stubs and bank statements showing your salary paid in
- Your W-2 forms and US federal tax returns, usually for the last two years
- For the self-employed, at least two years of tax returns and business accounts
- A US credit report if the lender asks for one
- Proof of your deposit and its source, 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
Some lenders and solicitors ask for documents to be certified, for example by a notary. Most of the process can be handled remotely, with electronic signing and video calls.
Before you apply
- Say you are a US person at the start, including if you hold dual citizenship or a green card, so you only approach lenders who will consider you.
- Decide whose name the property will be in, especially if you are buying for a child.
- Count your home in the USA. If you own one, 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 against the dollar.
- Take tax advice in both countries before you buy, not after.
- Avoid applying to several lenders yourself. Each application leaves a mark on your credit file. A Decision in Principle from a lender that accepts US persons tells you where you stand first.
For more on our service, see our page for expats and buyers in the USA.
Talk it through with an adviser
Every lender treats US citizens 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.