This page explains how a UK mortgage application actually runs: which loan structure suits which purpose, the documents required, the cost items, and the typical mistakes that hold an application up. A buyer living abroad is usually asked for a deposit of 25% to 40% which keeps the loan to value (LTV) in the 60-75% band.
The answer to “can I get one, and how much will I be lent?” is on a separate page: can a Turkish citizen get a mortgage in the UK sets out the eligibility conditions, the difference between buying to let and buying to live in, and the ICR test that decides the loan amount, with a worked example.
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Before you apply: the country of residence check
The full eligibility conditions are on the can I get a mortgage page. Here we cover only the one item that changes the order of the application: the lender looking at your country of residence.
Some lenders will not lend to residents of certain countries. The restriction looks at the country of residence, not nationality, so which lender’s door is open should be checked before you apply. We have tabulated the income, source of deposit and credit history conditions on the can I get a mortgage page page.
Which structure: personal or company
On a buy-to-let purchase there are two routes, and the choice is about tax, not about the interest rate.
| Personal buy-to-let | SPV (limited company) buy-to-let | |
|---|---|---|
| Deposit | Usually from 25% | Usually from 30% |
| Interest rate | Mostly slightly lower | Mostly slightly higher |
| Tax | Rental income falls under personal income tax and interest costs are only partly deductible | Rental profit falls under corporation tax and interest costs are fully deductible |
| Overhead | None | Company formation, accounting and annual filings |
| Who it suits | A buyer taking one property, or buying for their own use | A buyer building a portfolio who plans to keep the profit in the company |
If you are buying for your own use the SPV route is closed: living in a home bought through a company breaches the loan terms.
Interest-only or repayment
Interest-only: the monthly payment covers the interest alone and the capital is repaid in full at the end of the term. The monthly burden is low and cash flow is comfortable; it is common on rental property. You need to plan from the start how you will clear the capital at the end of the term.
Repayment: interest and capital are paid together each month and no debt is left on the property at the end of the term. The monthly burden is higher and the risk is lower; this is the one that makes sense for your own use.
Documents required
| Document | What it is for |
|---|---|
| Passport and proof of address | Identity verification; proof of address is usually a utility bill or bank statement from the last three months. |
| Proof of income | If you are salaried, payslips and an employer letter; if you own a company, certified financial statements and a tax return. |
| Bank statements | Usually the last six months. Irregular large deposits have to be explained. |
| Proof of source of funds | Lenders want to see reserves worth the deposit plus a few months of payments. |
| Rental income projection | On a buy-to-let purchase, to show that the rent covers the payment. |
Documents that are not in English need a sworn translation. The commonest cause of delay is not a missing document but an inconsistent one: when the figure on the bank statement does not match the figure on the income document, the application starts again.
Cost items
The cost of the loan is not interest alone. The typical items are: the lender’s arrangement fee (usually a percentage of the loan or a flat amount), the valuation fee, legal and land registry fees, and for a buyer living abroad an additional identity verification fee. These go into the total cost of the purchase; you can work the figure out in the capital.works purchase cost calculator.
Rates and the interest free alternative
The rate offered to a buyer living abroad is usually higher than the one offered to a buyer living in the UK. We keep what sets the rate, and the current policy rate, on our UK mortgage interest rates page. If you would rather not pay interest, the home purchase plans offered by Islamic banks are open to people living abroad as well; we compared the terms on our interest free mortgage page.
The process
- Decision in principle. Obtained with income and deposit details, and takes a few days. It is not binding but it shows the seller you are serious.
- Choosing the property and reserving it. On a new development a reservation fee is paid.
- Full application and valuation. The lender values the property; if the value comes in below expectations the loan amount falls.
- Mortgage offer. Usually valid for three to six months. On an off plan purchase, if completion runs past that window the offer has to be renewed; allow for this from the start.
- Exchange of contracts and completion. The solicitor runs a separate check on the source of the money.
Common mistakes
- Moving the deposit into the account immediately before applying. The money is expected to have sat in the account for a while and its source to be documented.
- Not planning the mortgage offer window around the completion date on an off plan purchase.
- Assuming the rent covers the payment. Lenders test the rent with a set multiple and with an interest rate of their own assumption; the test can fail even when the actual rent would be enough.
- Planning to live in a home bought through a company.
The deposit and loan to value bands are compiled from lenders’ product guides and change often; what binds is the terms in force at the moment of application. Source: capital.works® mortgage compilation, September 2026.
