Mortgages for Seafarers

Getting a mortgage as a seafarer can be more complicated than a standard mortgage application. Working away from the UK for extended periods, being paid by an overseas company, earning in a foreign currency and your tax status can all affect how a lender assesses your application.

However, being a seafarer does not mean you cannot get a UK mortgage. Many lenders will consider applications from seafarers, although you may need to provide additional information about your income, residency and employment.

At Premier Mortgage Services, we can help you understand the mortgage options available based on your individual circumstances.

Can seafarers get a mortgage?

Yes, seafarers can get mortgages in the UK. The challenge is that some lenders may have additional requirements because of the way seafarers work and are paid.

Seafarers can spend significant periods of time outside the UK and may receive their income from companies based overseas. Income may also be paid in a currency other than pounds sterling. These factors can make it more difficult for a lender to establish your income, tax position and UK residency.

The criteria can vary between lenders, which is why understanding your circumstances before making an application can be important.

What is a seafarer mortgage?

A seafarer mortgage is a mortgage for someone who works at sea but maintains their residence in the UK. Seafarers can include people working on transport and commercial vessels, including officers and captains, as well as people working in hospitality and entertainment on cruise ships.

For mortgage purposes, the important consideration is often how your employment, income and residency fit with a lender's criteria.

Residential mortgages are available to seafarers, although some lenders may have additional requirements compared with applications from people who live and work in the UK full time.

How is seafarer income assessed?

One of the main considerations when applying for a mortgage as a seafarer is demonstrating your income.

Your income will generally need to be evidenced as part of the affordability assessment. Where income varies during the year, or is received from an overseas employer, providing clear and comprehensive evidence can be particularly important.

You may be asked to provide around two years of income evidence. Depending on your circumstances, this may include accounts prepared by a registered accountant or information from HMRC, as well as evidence of your regular financial commitments and outgoings.

Does foreign currency income affect a mortgage application?

Many mortgage lenders will consider applicants who are paid in a foreign currency, although the currencies they are prepared to accept can differ between lenders.

Income paid in major currencies such as euros or US dollars may be considered by more lenders than income paid in less commonly accepted currencies. Foreign currency income can also receive additional scrutiny because exchange rate movements can affect its value when converted into pounds.

The way your income is paid and the currency you receive it in will therefore be relevant when considering which lenders may be suitable.

What about Seafarer's Earnings Deduction?

If you claim Seafarer's Earnings Deduction and are not liable for UK tax on your qualifying earnings, this does not necessarily prevent you from obtaining a mortgage.

You will need to be able to provide evidence of your income and tax position. You may also need to provide your UK tax returns as part of the mortgage application process.

Having clear records of your income and tax position can therefore help when your application is being assessed.

How much deposit do seafarers need?

The deposit required will depend on the lender and your individual circumstances. Seafarer mortgage applications can be treated differently from standard residential applications, and some lenders may require a larger deposit.

The available options can also depend on the property you are buying, your income and your overall financial circumstances. A mortgage adviser can help you understand what may be available before you make an application.

Can seafarers get a buy-to-let mortgage?

Seafarers can potentially obtain buy-to-let mortgages, including finance for properties intended as long-term rentals or holiday lets.

However, being away at sea for extended periods can create additional considerations when it comes to managing a rental property. A lender may want to see how the property will be managed while you are away.

Using a professional property management company may help address this concern, although the lender may want evidence of the proposed management arrangements. If you already have experience managing rental properties, evidence of that experience may also be relevant.

There can be additional considerations where the property is a house in multiple occupation, holiday let or Airbnb property, so it is important to consider the lender's requirements before proceeding.

What if you spend more than six months outside the UK?

How much time you spend outside the UK can affect which type of mortgage may be available to you.

Seafarer mortgages are generally aimed at people who maintain their residence in the UK. If you spend more than six months of a tax year outside the UK, an expatriate mortgage may need to be considered instead.

This is not necessarily straightforward, however, as the appropriate mortgage will depend on your individual circumstances and the lender's criteria.

What evidence do you need for a seafarer mortgage?

The documentation required will depend on your circumstances and the lender, but evidence of your income and UK residency will be particularly important.

You may need to provide your passport, HMRC documentation and evidence that you maintain a home in the UK. Where relevant, lenders may also want information showing your travel between the UK and overseas locations.

If your income is paid into an offshore account, this can create another consideration. Some lenders may not use income paid directly into offshore accounts when assessing affordability, although other lenders may be willing to consider it.

Does having a partner make getting a mortgage easier?

In some circumstances, applying jointly with a partner can make a mortgage application more straightforward.

If your partner has employment and income in the UK, their earnings can be included in the affordability assessment. This can help where a seafarer's income is variable or subject to particular tax arrangements.

There can also be an advantage if your partner will remain living in the property while you are at sea. This can address some of the concerns lenders may have about a property being unoccupied for extended periods.

Seafarers and property insurance

Home insurance is an important consideration when arranging a mortgage. Buildings insurance is generally required by mortgage lenders to ensure the property is protected.

For seafarers, the amount of time the property is left unoccupied can be particularly important. Some home insurance policies do not provide cover where a property is unoccupied for more than 30 days at a time.

If your property is going to be empty while you are working at sea, it is important to check that you have appropriate insurance in place and that the policy conditions are compatible with your circumstances.

Mortgages for seafarers buying unusual properties

The type of property you want to buy can also affect the availability of a mortgage.

Some properties can be more difficult to mortgage because of their construction or characteristics. These can include certain ex-council properties, non-standard construction homes and some flats.

For example, some lenders may be more cautious about properties with non-standard construction, certain smaller flats, high-rise properties or properties affected by cladding.

If you are a seafarer and the property itself has characteristics that could make lending more complicated, it can be particularly important to establish which lenders may consider the application before proceeding.

Get mortgages for seafarers advice

Working at sea does not automatically prevent you from obtaining a mortgage. However, the combination of your employment, income, tax position, residency and the amount of time you spend outside the UK can make the application more complex.

Premier Mortgage Services can discuss your circumstances and help you understand the mortgage options available to you. Whether you are buying your home, considering buy-to-let or need advice about a more unusual property, speaking to an adviser before applying can help you establish what information you may need.

Your home may be repossessed if you do not keep up repayments on your mortgage.