Head of Content
Mortgage Advisor & Director
Can seafarers get a mortgage?
Getting a mortgage in the UK as a professional seafarer can be complicated but is by no means impossible.
The combination of long periods away from home, potentially out of UK waters, with a non-standard income, can create a challenge from a mortgage lender's perspective. Even trying to manage the mortgage application process alongside your crew rotation can create problems. If you're trying to apply offshore, you may struggle to access the technology you need, such as a scanner and reliable wifi.
All of these factors point to using an experienced mortgage broker. Not only will they be able to advise on the most appropriate lenders for mariners, but they will also be able to find you the best deal and help with the application - keeping you updated throughout the process.
Do seafarers count as expatriates?
Expatriates are UK-nationals who live away from their home country either on a temporary or permanent basis.
If they pay taxes in the foreign country they live in or don't spend the minimum amount of days in the UK on an annual basis, they'll be classed as UK-expatriates.
Seafarers can be out of the country for weeks and months at a time and often pass the annual threshold of being out of the country. In 2012, a tax provision was passed in the UK that gave seafarers a 100% tax exemption on their foreign earnings, known as the HMRC's Seafarers Earnings Deduction (SED). This was to recognise the fact there is significant international labour competition and that seafarers are not drawing upon public services for long periods due to the nature of their work.
By making use of this provision and completing a UK tax return, seafarers will become eligible for non-expatriate mortgages in the UK.
What is the difference between expatriate and domestic mortgages?
Expatriate mortgages are more expensive to set up in terms of fees and offer higher interest rates than domestic mortgages. This is to account for the increased risk of expatriates; if you're not permanently based in the UK, you are more of a flight risk when it comes to the mortgage debt, and the property may not be occupied for longer periods.
Defining an expatriate's income and tax-status can be more complicated compared to a permanent UK resident, which is also accounted for. This is why it makes sense for mariners to complete a UK tax-return and avoid expatriate mortgages.
Can I get a bigger mortgage because my income is tax-free?
Mortgage affordability calculations are based on gross salary and do not take into account tax paid, so you'll be in the same position as someone who pays tax.
Can I get a buy to let mortgage as a first-time buyer?
As you'll be spending long periods of time out of the country, you may want to rent out your property for that period, in which case you should be applying for a buy to let mortgage.
Mortgage lenders are wary about offering buy to let mortgages to first time buyers on the basis that they're getting a cheaper interest-only mortgage before living in the property themselves. As a mariner, this will not be the case for you, and a mortgage broker will be able to recommend the most appropriate lender for your situation.
Do I need a permanent contract to get a mortgage?
If you're on a temporary contract, you may be concerned that you won't meet the lender's eligibility criteria. The good news is that lenders recognise the changing employment landscape. As long as you can demonstrate a history of employment on your tax returns and have at least six months remaining on your existing contract, you will still be eligible. We would definitely recommend using a mortgage broker to position your application correctly and approach the most suitable lenders.
Learn more and apply
At Teito, we're a whole of market mortgage broker, which means we work with more than 100 lenders offering over 20,000 mortgage deals, including those suited to seafarers. Our team are experienced in helping people from all situations to find the best deal for them. We promise to make your mortgage journey as stress-free as possible!
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