UK Mortgages for Expats in US

Securing a UK Mortgage as an Expat Living in US

Main Challenges Faced by UK Expats living in the US:

• Limited UK Credit History: Most UK Mortgage lenders require a UK credit report, which many British expats residing in the US expats don’t have.
• Foreign Currency Income: Some lenders are hesitant to approve mortgages for applicants earning in US dollars.
• Tax Complications: UK Expats living in the US are subject to tax obligations in both the UK and the US, including FATCA, which complicates UK mortgage applications.
• Lender Restrictions: Many high-street banks either simply refuse mortgage applications from non-UK residents, or impose strict eligibility criteria making them unachievable.

How a Specialist Mortgage Broker Can Help

A UK based mortgage broker with expat expertise can: 

• Identify lenders that accept and welcome applications from US-based borrowers. 
• Help structure foreign income to meet lenders’ requirements. 
• Assist with legal and regulatory considerations. 
• Provide independent mortgage advice tailored to expat needs, ensuring access to the most suitable mortgage products. 

Tax Considerations of a UK Mortgage When Living in the United States

If you are a foreign National or UK expat residing in the US with a mortgage on a rental property in the UK it is crucial to fully understand what the cross–border tax implications may be. It is possible that both the US and UK taxing authorities may tax the capital gains or income from your property. Having an effective plan to mitigate your risk of double taxation and being stuck with an unexpected tax bill is very important.

In general terms, if you are a taxpayer in the US and live in the US but have rented out a property in the UK, you may expose yourself to UK tax, and report and pay UK income tax, using the UK Self Assessment tax return system. In determining your UK tax position you may be able to take deductions for certain types of expenses (e.g. mortgage interest, letting agent fees and general property maintenance) albeit not all expenses will be deductible to performance of the rental position.

As a US tax resident, your income will be taxed on a worldwide basis. Your UK rental income will need to be reported on your US tax return as well. The US – UK Tax Treaty exists to prevent double taxation, so in most cases, any income taxes you pay to the U.K. can be claimed as a foreign tax credit on your U.S. tax return to reduce your liability.

The IRS‘s treatment of UK mortgage interest depends on whether the property is a rental property or used personally. For rental properties, mortgage interest will generally be deductible as a business expense. If the property is for personal use (like a holiday home), whether it is deductible and how much will depend on US tax law as it is in effect at a particular time.

If you sell your UK property, and you make a profit, you could be subject to UK Capital Gains Tax (CGT). The US may tax the gain as well, but you may qualify for a foreign tax credit or exclusion, depending. Additionally, US citizens and residents are subject to the Net Investment Income Tax (NIIT) on certain types of passive income, including capital gains.

Due to the complexity of UK and US tax rules, especially regarding rental income, foreign tax credits and selling property, it‘s strongly recommended that you work with a tax advisor who specialises in US – UK cross-border tax.

Access to Specialist Lenders

Many high-street banks reject US expats due to strict lending criteria. We work with all the specialist lenders who accommodate overseas applicants, ensuring you get the best possible mortgage solution for your exact needs.

Tailored Mortgage Advice

We provide personalised mortgage advice based on your property goals, income and investment strategy, ensuring the best mortgage options for your personal circumstances and requirements.

Dedicated Support Throughout the Process

All clients are assigned a dedicated Case Manager and Expat Mortgage Advisor to handle all documentation and lender requirements, ensuring a smooth and stress-free process. You are given direct access to our Advisor and Case Manager via both direct phone line and email – no voicemails and no call centres!

24/7 Real-Time Communication 

Our WiiN CRM system keeps you updated on your mortgage application progress in real time. You can track status updates, receive notifications and upload documents anytime, anywhere.

With expert guidance, access to specialist lenders, and dedicated support, Expat Mortgages UK makes applying for a UK mortgage as a US expat or Citizen simple and efficient.

Try our Expat Mortgage Calculator UK today to discover monthly mortgage costs and the deposit needed.

UK Expat Guide to Living in the USA: Best Cities, Regions & Property Hotspots

The United States of America is a great choice for UK expats for all sorts of reasons. There are 50 diverse states to choose from and something for everyone, whether you’re looking for a fast-paced way of life or something quieter.

New York City (“NYC”) is a fantastic option for professionals and creatives. It’s also home to some of the world’s most iconic landmarks. If you’re interested in entertainment and tech, Los Angeles may fit the bill perfectly. Austin, Texas has become more and more popular over recent years thanks to its live music and tech scenes as well as its lower cost of living.

Chicago offers a wonderful blend of energy and timeless charm, and Seattle offers lots of job opportunities, green spaces and food scene. Miami is ideal for beach lovers and particularly popular amongst young expats. It’s home to many remote workers and has a fast-growing business sector as well as strong links to Latin America.

Boston is a fantastic option for families and is famed for its quality schools and close-knit communities. Its universities also have a great reputation.

Many UK expats have been drawn to the USA because of its rich history, excellent job opportunities and exciting mix of properties.

Get in touch for Specialist Expat Mortgage Advice 

If you’re a UK expat or foreign national living in the USA and looking to secure a UK mortgage, our expert mortgage advisers in the UK can help. We offer: 

• One-to-one consultations via video call or phone.
• Expert mortgage advice from a specialist expat advisor.
• Exclusive access to specialist expat mortgage lenders.

Contact UK Expat Mortgage Broker today to start your UK mortgage journey from the US with total confidence!