Offshore Contractor Mortgages

How to Get a Mortgage as an Offshore Contractor

If you work at sea or spend long stretches offshore, finding a straightforward mortgage can feel harder than it should.

Your income may be paid in dollars or euros, your contract might be rotational, and parts of your pay may be tax exempt under the Seafarers Earnings Deduction. This does not necessarily mean you cannot get a suitable mortgage.

What offshore contractor means in mortgage terms

Offshore contractor is a broad description rather than a single label used by lenders. You may be a marine engineer, an officer in the merchant fleet, oil and gas crew, yacht or cruise staff (seafarer), a sub sea specialist, a surveyor, a rope access technician, a renewables contractor, or a project lead working on rotation.

You might be paid in a foreign currency, through an umbrella company, as a limited company contractor, or on PAYE with rotational allowances. From a mortgage perspective the shared theme is non standard income that requires careful packaging so the underwriter can be confident about affordability and ongoing stability.

The main challenges with offshore contractor mortgages

Common friction points include:

• Income paid in a foreign currency and converted for affordability with a safety discount
• Rotational contracts that create gaps on bank statements despite strong annual earnings
• SED treatment and nil tax deductions that confuse automated checks
• Pay routed through offshore or multi currency accounts that do not build a UK credit trail
• Limited access to some small deposit schemes if income is in a foreign currency

How lenders assess income and affordability

Affordability is always the core test. Lenders want to see consistent earnings, a clean audit trail, and clarity on your tax position. Most underwriters will look across the last twelve to twenty four months to judge sustainable income, then apply their policy on currency conversion and any deductions. However, this is dependent on the lender so a mortgage adviser can guide you here.

Currency and exchange rate treatment

If you are paid in dollars, euros, or another major currency, lenders usually convert the figure to sterling and then apply a percentage reduction to allow for exchange rate movements. The deduction varies by lender and currency and can range from ten to twenty five per cent. This is not a penalty, it is a prudence buffer.

Rotational contracts and gaps between sets

Many offshore roles follow a rotation such as four weeks on four weeks off or two and two. Lenders accept this pattern when it is documented. If you are salaried, six months of payslips and bank statements can be sufficient. If you are paid only when on assignment, expect to provide a longer history with contracts or sea service letters that evidence rhythm and recurrence.

Allowances bonus and hazard pay

Regular allowances that are contractual and evidenced on payslips are often included in affordability, sometimes at a reduced percentage. Discretionary bonuses may be used if there is a track record, though some lenders exclude them.

Residency tax and SED proof

Being offshore does not automatically make you an expatriate for mortgage purposes. If you maintain a home base, remain on the electoral roll, and file UK self assessment returns where required, many mainstream and specialist lenders will treat you as a resident borrower. If you claim the Seafarers Earnings Deduction you should still file a return and keep full travel evidence.

Documents you should prepare

Essential items usually include:

• Passport and proof of address with an unbroken address history
• Three to six months of bank statements for both sterling and foreign currency accounts
• Payslips for at least six months if salaried or a schedule of invoices and remittances if contracting
• Current contract or sea service letter that confirms your rotation and day rate or salary
• SA302s and tax year overviews where relevant, especially if claiming SED or if self employed
• Evidence of deposit and source of funds

First time buyers and home movers

As a first time buyer you can apply on your own or with a partner. Adding a partner with UK based income can improve affordability and reassure lenders on occupancy and insurance when you are offshore. Deposit schemes that require sterling income may be limited, so plan for a five to ten per cent deposit or more. Home movers face the same assessment with the added benefit of an ownership track record and a stronger UK credit footprint.

Buy to let options for offshore contractors

Buy to let is possible if you meet the usual criteria around deposit and rental coverage. Expect a minimum deposit of twenty five per cent, sometimes higher for new build flats or specialist property types. If you plan a holiday let or serviced accommodation, lender choice narrows and a specialist product may be required. If a family will occupy a residential property while you are away, you need a standard residential mortgage rather than buy to let.

Improving your Mortgage approval odds

Small steps can make a big difference to lender confidence and loan size. Aim for the following:

• Keep a UK current account that will pay the mortgage and show regular credits from your foreign currency account
• Register on the electoral roll at your home address
• Save a clear deposit with a documented source
• Reduce short term debt and avoid new credit in the months before you apply
• Keep copies of contracts, payslips, sea service letters, and travel logs in one place
• If you are newly contracting, wait until you can show a stable pattern unless a lender accepts day one contractors in your field

Conclusion

Offshore contractor mortgages are usually achievable once your income, rotation, residency, and tax position are presented the right way.

The keys are early preparation, lender selection that fits your currency and contract, and a clean audit trail from foreign pay to a UK account. When those pieces are in place, you can often access the same choice of fixed, tracker, interest only, residential, and buy to let products as any other borrower.

If you want a clear view of how much you can borrow, contact Kerr & Watson for bespoke advice.