Yacht crew mortgage: How to get finance for a UK property

When you work at sea, buying property at home in the UK can seem difficult, with one key challenge being identifying where it is you live. You consider the UK to be your home, but mortgage lenders want to class you as an expat, leading to higher rates and complex mortgage applications.

With tax-free earnings and comfortable tips, your real finances often outstrip the ‘on-paper’ results that you can present to a lender, adding even more complication and disappointment.

Thankfully, Clifton Private Finance are here to help. We understand just how difficult it is for yacht crew to get the mortgage they deserve, especially when you’re trying to squeeze the whole process in during a short shore leave. We’ve helped crew members from stewards to captains get UK-based mortgages that provide the buying power they deserve, and we’re here to do the same for you.

Key Takeaways

• Yacht crews often suffer with expensive expat mortgages.
• Clifton Private Finance can help you get a low-rate UK residential mortgage.
• Yacht crew can get both residential home-buying mortgages, and buy-to-let landlord mortgages for investment.
• Applying as a UK resident saves thousands of pounds every year.
• Our team at CPF will help you present your income to ensure the best rates possible.

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Can Yacht Crew Get a UK Mortgage?

Let’s start with the key question - can you get a UK-based mortgage if you’re a seafarer? The answer is a clear yes - but it does come with some caveats.

Working with an expert mortgage broker - such as Clifton Private Finance - will help you get around that problem. We know what the lenders are looking for and how to help you qualify for a traditional UK residential mortgage. We will work closely with you on your application, ensuring lenders see the UK address, credit file, and proof of UK ties that they need to consider you - quite correctly - as a UK resident and not someone living abroad.

Why Yacht Crew Are Typically Considered ‘Expats’ by Lenders

When a lender assesses your mortgage application, they see several indicators that are typical of real expats. These include:

• A main address that is offshore
• Payment in foreign currencies through foreign banks
• No UK base

Lenders the offer you poorer rates because they see you are a greater risk (and risk is everything when it comes to assessing mortgage rates!).

The problem is, ‘yacht crew’ is simply not understood by many lenders. In truth, it should be its own category, something that falls between the standard UK resident category and the Expat one, but only a specialist lender has such flexibility - standard banks are far happier to keep to more limited options and lean into the ‘computer says “no”’ mentality if necessary.

Is it worth the effort to clarify the difference? Absolutely, even a relatively small change of 1% on your mortgage rate can save you thousands of pounds a year and smooth your monthly cash flow. Consider a £400,000 mortgage at 5% vs. the same mortgage at 6% or 7%:

Monthly repayments on £400k mortgage

For each single point of percentage different, the cost of the mortgage goes up by almost £250 every single month! That’s £6,000 saved between 7% and 5% every single year - it’s well-worth the extra effort to drop the rate.

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How to Not be an Expat

Proving that you are UK resident and tax payer is essential if you want to get the residential mortgage rates - but how do you do that?

1 - Claim the Seafarers Earnings Deduction (SED)

The Seafarers Earnings Deduction (SED) is a tax rule set up by HMRC (HS205) that offers a 100% tax exemption to qualifying crew. The essence of SED is that if you’ve spent more than half of your tax year at sea, you can claim the full exemption.

When it comes to getting a mortgage, however, the SED proves something else equally vital: it states that you are a UK tax payer - even if it does that by providing you with an exemption to pay any tax! Somewhat ironically, this can be a great advantage when it comes to supporting your UK-based mortgage.

It’s essential, therefore, that you file a UK tax return each year - even if your income is 100% exempt under SED rules. This official paperwork is key to show lenders that you are financially connected to the UK.

To understand more about the SED and its qualifying criteria, visit this page on the UK government website.

2 - Meet the UK Statutory Residence Test (SRT)

There’s some conflict between this and the SED - as both are looking to see how much time you spend in the UK. The SED requires that you have spent 183 days in the tax year at sea, while the SRT needs you to have spent 183 days in the year in the UK. A quick calculation shows that you cannot have both - yet, having both is part of having the lender’s consider you for a UK residential mortgage. So, how is it done?

The key is with the secondary parts of the statutory residence test - the ties to the UK. The SRT is considered to be true if you have spent more than 91 days in the UK, have annual tax returns, and can show an additional tie to the UK. Sufficient ties are:

• Family tie - If you have a spouse and children under 18 living in the country, this is considered the ‘family tie’.
• Accommodation tie - Having a residential home in the UK is the ‘accommodation tie’. This can be because you already own a home and are looking for a remortgage or to move home, or if you are buying your first home but currently have a residential home that is rented, or live with parents or siblings while in the UK.
• Work tie - Working during your days in the UK provides you with a ‘work tie’. Undertaking a minimum of three hours work per day for 40 days in the year (they don’t have to be consecutive) ensures this tie.

Meeting both the SRT and SED will put you on extremely good standing to get a UK residential mortgage.

3 - Use a UK Address

Lender risk is a central part to your mortgage application. Lenders will be wary of applicants who cannot provide a stable UK address - this includes those using PO Box addresses or other nominee-style addresses.

Having a long-term and reliable home UK address strengthens your mortgage application. This may be through using a parent’s home, for example.

4 - Build Your UK Credit History

Lenders will always check your UK credit score. This provides a history of your financial transactions and is the first port of all for any UK lender looking to provide a mortgage. There are some key steps that will help you build a solid UK-based credit history:

• Don’t Avoid Credit - Many people believe that the cleanest way to have a good credit score is to avoid debt and credit altogether. This, unfortunately, is not the right path as rather than show financial responsibility, it instead shows no financial interactions whatsoever. A clean credit record doesn’t provide confidence and security for potential mortgage lenders; instead it makes you a complete unknown. Building your UK credit history in reliable steps, such as mobile phone contracts, basic credit cards, and UK bank accounts is essential to getting a mortgage.
• Use a Credit Card - As an addition to the above, a credit card is the simplest way to build a good credit score. It doesn’t need to have a huge limit, but by buying purchases on your credit card and paying them off efficiently, you develop a provable history of good financial management.
• Be on the UK Electoral Roll - Being signed onto the UK electoral roll indicates stability and responsibility. It is simple and effortless and provides credit agencies with a clear line to your address, helping match your records when needed.
• Keep an Eye on Your Credit Score - You can check your credit monthly with the three main CRAs (credit reference agencies), Equifax, Experian, and TransUnion. By keeping an eye on your score, it’s easier to fix problems and improve your standing.

The Real-World Difference

Is it worth the effort? At the time of writing (mid-2025), the difference between a UK residential mortgage rate and a good expat mortgage rate is about 1.0%, with residential mortgages available at 3.8% and the best expat ones coming in at 4.8% or higher.

What does that mean on a £300,000 residential repayment mortgage over 25 years?

Even this single one percent difference can make a significant impact, saving approximately £2,000 in interest every year. Is it worth the effort? At Clifton Private Finance, we believe it is. A little preparatory work that is likely to take no more than a few hours of your time spread over the preceding weeks of your mortgage that saves you thousands in the first year alone? It’s like being paid a few hundred quid per hour! Plus, with us alongside, the difficulty really is minimal - our expertise means getting the most cost-effective mortgage is smooth and trouble-free.

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The Mortgages Available for Yacht Crew

Once you are able to establish yourself as a UK resident for mortgage purposes, you open up opportunities.

For most yacht crew, the main aim is securing a UK home for yourself and your family - a UK residential mortgage. This will have a repayment structure that means that once the mortgage term has been reached, the entire loan is paid off and the house is yours in full. It’s the standard mortgage for those looking to buy a home.

For some, however, buying property in the UK is more of an investment than a home. After all, if you’re away at sea for long periods, you may want to rent out your property until you’re ready to come home for good. A buy-to-let mortgage is the perfect product for these cases, enabling you to buy a property today, rent it out for the intervening years, and get a return on that investment in the future.

This can be done through:

• Repayment BTL - Similar to a standard repayment mortgage, once the term is complete, a repayment BTL has no outstanding balance and the property is yours. Perfect for those looking to rent out in the meantime and have a home to come to in later life.
• Interest-only BTL - The typical landlord mortgage, designed to have low monthly payments so that rental income brings in a regular profit. Once the term is complete, the mortgage balance is due and can be paid either by selling the property (often providing a significant return on investment) or through refinancing should you wish to keep it. Learn more about buy-to-let as a landlord in our knowledge base.
• Portfolio mortgage - Looking to own more than one property and act as a landlord while at sea? A portfolio mortgage allows you to use the equity in one property as deposit in another, providing the means to build a property empire. Read more about portfolio mortgages here.

Whatever your mortgage plans, Clifton Private Finance are here to help you get the best rates and most flexible terms. Speak to an advisor today.

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Applying for a UK Yacht Crew Mortgage

Making your application can seem nerve-wracking, especially when you are looking to present yourself to UK lenders as a seafarer. With Clifton Private Finance, the process is eased, with a dedicated advisor on hand to work with you every step of the way.

One of the key stages will be developing an income portfolio that proves your ability to manage to mortgage repayments. This will include:

• Work contracts - Lenders are looking for long-term job security which can be harder to prove for yacht crew. However, well-presented documents that show a stable series of short-term contracts can be as effective as one long-term contract. Detailing your relevant working history can help reassure lenders that your income is reliable going forward.
• Accountant-confirmed income summaries - Your accountant or umbrella company (if relevant) will be able to provide additional securities that back up the reliability of your income.
• Bank statements - Clear indication of your income through regular bank statements is essential. These are best if held by a UK bank in Sterling, but international banks and payments in other currencies can also be considered. Exchange rates can affect your income portfolio, so you may need to show a stronger level of income for affordability checks when paid in a foreign currency.
• UK tax return - For a UK mortgage, a UK tax return and accompanying SED are key.

With your income evidence in hand, we can work together to build the perfect application and select suitable lenders. This will lead quickly to an agreement in principle, giving you the power to go forward and start looking for homes.

Frequently Asked Questions - Yacht Crew and UK Mortgages

Q: Can I get a UK mortgage if I’m paid in Euros or Dollars?

A: Yes. While not all lenders accept foreign currency, at CPF, we can match you to a specialist lender who understands your income status.

Q: Do I need a UK address to get a mortgage?

A: No, but you may suffer an expat rate without one. A UK address is a strong indicator that you have the appropriate ties to the UK and is recommended for anyone looking to obtain a mortgage. Our specialist team will be able to look at your individual circumstances and advise accordingly.

Q: Do I need to be in the UK to make the application for a mortgage?

A: No. With Clifton Private Finance acting as your broker, we can complete the entire application remotely.

Q: Can I get a buy-to-let as a first-time buyer?

A: Yes, though there are some restrictions and many benefits of being a first-time buyer will be lost. However, it is not unusual for yacht crew to look to a BTL mortgage as their first property purchase to secure an investment in the UK property market.

Q: What if I only have irregular contracts?

A: At Clifton Private Finance, we can help you with your income presentation to make sure your financial situation is seen in the best way by lenders. Many specialist lenders understand the nature of rolling and irregular contracts for seafarers.

Q: Can I claim SED if I’ve spent less than 183 days at sea?

A: No, SED is for those who are sea for more than half the year. However, if you have been in the UK for more than 183 days of the year, then it is far easier to prove UK residency and avoid the unwanted expat mortgage rates.

Q: Can I use a mortgage to buy a yacht?

A: No, mortgages are secured on bricks-and-mortar properties or land in the UK. However, at Clifton Private Finance, our asset finance team are here to help you secure marine finance - perfect for buying your own boat. Let us know if you’re considering purchasing a seagoing home!

Yacht Crew Mortgages with Clifton Private Finance

Getting a low-rate UK mortgage as a member of yacht crew can feel overwhelming but with Clifton Private Finance alongside, the process is substantially easier. We will work directly with you, taking into account your personal situation. Our advisors will be available to discuss the details of your mortgage application at times that work for you, communicating online and through phone calls to facilitate the demands on your day-to-day life. Together, we can make your UK mortgage happen.

As a specialist mortgage broker, CPF offer:

• Advice on obtaining UK residency status.
• Help with income proof and presentation.
• Access to the full range of specialist UK mortgage lenders.
• Understanding regarding the challenges of organising a mortgage remotely.
• Rapid application moving quickly to agreement-in-principle.
• Support throughout the mortgage process.
• The best possible rates and greatest flexibility on your mortgage.
• Experienced advice on ongoing mortgage management, including interest rate changes and remortgages.

Arrange a free consultation with a CPF advisor today and turn your dreams of a land-based home into a solid reality.

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