Too few lenders will lend to non-UK residents, brokers say

The majority of UK brokers find it increasingly difficult to secure finance for international clients, with currency fluctuations and a lack of lender appetite among the biggest challenges.

Butterfield Mortgages in the UK commissioned the independent survey of 300 UK-based mortgage brokers. It found that 93% have worked with non-UK residents in the past five years, highlighting the ongoing demand from international clients seeking to invest in UK property.

The research also revealed that 98% of brokers find sourcing finance for overseas borrowers to be challenging. Over one in ten (11%) say it is ‘extremely challenging’, 35% label it as ‘very challenging’, 28% describe it as ‘moderately challenging’, and 25% went for slightly challenging’. 

When asked to identify the main difficulties they face, brokers most frequently pointed to a lack of lenders willing to work with international borrowers (34% said this was an issue), followed closely by concerns about currency fluctuations during the loan term (33%). Meanwhile, 28% cited the difficulty of verifying overseas income and assets as a key challenge.

Alpa Bhakta, CEO of Butterfield Mortgages Limited in the UK, said: “Clearly, there remains high international demand for UK property investments, but the availability of suitable mortgage products is a major sticking point for brokers working with overseas clients. 

“Lending to non-UK residents requires a high level of expertise, not to mention the right products and a willingness to embrace the additional due diligence it involves. Lenders that are able to take on the challenge will need to ensure brokers and overseas buyers – who remain a vital part of the UK’s property market, especially in prime central London – can access the finance they need, irrespective of how complex their case may be.”