How to buy property in the UK as a foreigner – Step-by-step process
Let’s take a look at the steps involved in buying a property in the UK as a foreigner, starting at the very beginning:
- Set your budget and decide where you want to live, along with what type of property you’re looking for
- Get your finances in order before you start house hunting. You’ll need to get together a deposit, and apply to get a mortgage in principle. This is a document from a mortgage provider which shows how much they are prepared to lend you
- Start looking for properties, online or using an estate agent
- Go on viewings, to inspect the property in person
- Make an offer to the estate agent or owner. You may have to negotiate, offering a higher amount if other buyers are interested
- Apply for your mortgage once your offer is accepted
- Appoint a solicitor to carry out the conveyancing work
- Arrange a home survey if you want one carried out
- Your solicitor will carry out legal work until contracts can be exchanged. At this point, you’ll also pay a deposit (usually 10%). Once contracts are exchanged, you will be legally committed to buy the property
- Make final arrangements and negotiations (for example, for fixtures and fittings) and prepare for completion
- Pay the final balance to the solicitor and they will confirm completion. Your solicitor will also register the transfer of ownership with the Land Registry.
- Pick up the keys and move into your new home.
Can I get a mortgage from a UK bank as a non-resident?
You can get a mortgage from a UK bank as a non-resident, but it’s generally much more difficult compared to applicants who live there permanently.
There aren’t a large number of products available for non-residents, so you may need to use a specialist broker to help you find a non-resident mortgage.
You’ll also face restrictions. For example, banks like HSBC will only offer residential mortgages to non-UK residents if they live in countries where the bank operates. This includes the USA, Singapore, Australia, Hong Kong or the UAE among others.¹
In most cases, you’ll find that the requirements for application are more rigorous than for UK nationals and residents. For example, you may need to pay a larger deposit or face higher interest rates, along with having a minimum income and extensive proof of funds.
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Taxes and fees for buying and owning property in the UK
There are a number of fees and taxes you need to know about as a foreigner buying property in the UK.
Many of these are applicable to all UK property purchases, while some are only for non-citizens purchasing property in the country.