UK mortgages for US citizens buying in London

FATCA — lender pool

Many UK lenders decline US-connected applicants outright due to FATCA compliance obligations. The specialist pool is smaller but sufficient — lender selection is the most important first step.

Minimum deposit

Typically 25–40% for US-connected non-resident buyers, depending on the lender and overall profile.

Income evidence

W-2s, 1040s and employer letters accepted. Stock, RSU and bonus compensation assessable alongside base salary. Complex structures (S-Corp K-1, LLC) assessable by specialist lenders via manual underwriting.

US citizenship

US citizenship triggers FATCA obligations regardless of UK residency status. Green card holders and US tax residents are equally affected.

Source of funds

US brokerage and bank accounts accepted with standard documentation. UK conveyancers are experienced with US-sourced deposits.

UK residency required

No — US citizens and residents based in the US can purchase UK property with a UK mortgage, subject to non-resident lender criteria.

Criteria at time of review, September 2026. Individual lender criteria vary and may change without notice.

Yes, but the lender pool is significantly narrower than for most other nationalities. US citizenship and US tax residency trigger FATCA (Foreign Account Tax Compliance Act) reporting obligations for the UK lender — and a substantial number of UK banks choose not to take on that compliance burden. This means US-connected applicants are declined at the outset by many standard lenders, not because of any problem with the application, but simply because of passport or tax status. The key points:

• FATCA and lender selection: we work specifically with lenders who accept US persons — this narrows the field but does not prevent borrowing. Lender selection is the critical first step.
• Deposit: typically 25–40% for US-connected non-resident buyers, depending on the lender and the overall profile.
• USD income: salary, bonus, RSU and stock compensation in US dollars is accepted. The income evidencing requirements — W-2s, 1040s, employer letters — are well understood by the lenders we work with.
• Complex income structures: S-Corporation K-1 income, LLC distributions and self-employed income from a US entity can all be assessed by specialist lenders equipped for manual underwriting.
• Source of funds: US brokerage and bank accounts are accepted with appropriate documentation. UK conveyancers are experienced with US-sourced deposits.
• UK residency not required: US citizens based in the US can purchase UK property with a UK mortgage — subject to lender eligibility and the non-resident criteria.

The most important thing is approaching the right lender in the right way from the start — a FATCA-related decline part-way through an application wastes time and leaves a footprint on the credit file.

American buyers are a significant and consistent part of the London and prime UK property market, but the lender landscape is genuinely narrower for US-connected applicants than for most other nationalities, because of the compliance obligations FATCA places on UK banks. Getting this right from the outset — rather than being declined part-way through an application — is the main reason to use a specialist adviser.

Lockhart Murphy is UK-based and regulated for UK mortgage business. We are not licensed or regulated in the United States. This page does not constitute advice on US law or tax matters.

An American software entrepreneur, resident in the UK on a skilled worker visa, needed a mortgage to buy a family home in London. His income came entirely from a US S-Corporation — structured as K-1 partnership distributions — with no UK employment history and no UK self-employment income. Two other brokers had told him the income was impossible to use.

We prepared a documentation package translating the K-1 income into terms a UK underwriter could assess — US federal tax returns, Form 1120-S, an accountant’s letter and a supporting note on the S-Corporation structure — and placed the case with a lender whose private banking team had capacity for cross-border income assessment. The mortgage was offered following a manual review, with the K-1 income accepted on a two-year average.