Seafarer Mortgages: How Offshore Income, FX And Today’s Rate Path
Shape Your Options

Seafarers can get UK mortgages, but underwriting often turns on how your income is evidenced (contracts, payslips, day rates), whether you’re paid in foreign currency, and how lenders view exchange-rate risk. Today’s market backdrop—Bank Rate at 4.00% since 7 August 2025 and modestly cooler inflation—also feeds into fixed-rate pricing via SONIA swap rates.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

What is driving UK Mortgage pricing for Seafarers right now

• Bank Rate & inflation: The Bank of England’s official Bank Rate stands at 4.00% following cuts in February, May and August 2025. September CPI inflation printed 3.8% year-on-year. Markets are watching the 6 November 2025 MPC meeting for signals on the path ahead. While not a mortgage rate, Bank Rate influences lenders’ funding costs.

• SONIA swaps: Lenders typically price fixed deals off SONIA interest-rate swaps. Indicative snapshots late October showed 2- to 5-year swaps in the mid-3% range, supporting the gradual easing seen in some fixed rates since summer—though daily market moves mean lender pricing can change quickly.

Lender rules that matter for Seafarers

• Foreign currency income = extra checks. If you’re paid in USD/EUR or another currency, the Financial Conduct Authority (FCA)’s Mortgage Conduct of Business (MCOB) rules require clear warnings about exchange-rate risk and an illustration of the impact of a 20% sterling move, plus (where relevant) options to limit FX risk or convert the loan. That’s why affordability on foreign-currency income can include buffers or haircuts.

• Evidence and stress testing. Lenders must assess sustainable income and run interest-rate “stress” checks under MCOB 11, with additional expectations set out in the FCA’s 2025 mortgage rules discussion. For seafarers, expect to provide contracts, recent payslips or remittance advices, and bank statements covering credits while you’re at sea.

• Who may consider you. Mainstream lenders’ criteria vary: some accept applicants working abroad or earning in foreign currency (often within set country/currency lists), while others will only assess sterling-paid income. International/expat arms (e.g., HSBC Expat, Barclays International) set separate eligibility (residency, minimum income, deposit) and currency matrices. Policies change, so packaging the case correctly matters.

• Seafarers’ Earnings Deduction (SED). SED can reduce your UK income tax if you meet HMRC’s rules, but it doesn’t by itself guarantee lender acceptance. Still, clean records of voyages and time outside the UK can help demonstrate consistency of employment. Mortgage One has a full understanding of SED and how to maximise it for your mortgage.

Practical steps to strengthen a Seafarer Mortgage application

• Prove stability of income: Keep a file of employment contracts (showing day rate or salary), the last 3–6 months’ payslips/remittances, and corresponding UK bank statements showing inbound credits. Many lenders also ask for the last P60 if applicable. (Exact lists differ by lender.)

• Address the FX angle early: If paid in a foreign currency, expect lenders to apply a reduction to income or stress the exchange rate. Ask how a 20% sterling move would affect affordability and repayments. Some international lenders publish approved currency/country lists.

• Maintain UK credit “footprint”: Keep a UK address history, on-time payments and an active current account to support credit scoring (especially if you’re away at sea for long stretches). Major high-street lenders’ “working abroad” or “foreign national” sections outline general expectations.

• Pick the right product length: If your income is variable by contract, longer fixed periods can smooth cash-flow planning; if you anticipate currency swings or contract changes, shorter fixes may offer flexibility. Pricing is swap-driven, so compare total cost over the fixed term rather than headline rate alone.

What this could mean for first-time buyers, remortgagers and landlords at sea

• First-time buyers: With Bank Rate at 4.00% and swaps in the mid-3s, entry-level fixed rates may be more manageable than earlier in 2024, but foreign-currency income can cap borrowing. Build a larger deposit where possible and document history of savings while offshore.

• Remortgagers: If your current fix is ending, start paperwork early—particularly proofs from multiple voyages. Where affordability is tight due to currency haircuts, a product transfer with your existing lender may be easier, but it’s still subject to status.

• Buy-to-let (some not FCA-regulated): Rental calculations and stress tests differ from residential. Arrears/possession statistics in Q2 2025 underline the need for prudent buffers on costs and voids.

Key Numbers (indicative; subject to change)

• Bank Rate: 4.00% (since 7 Aug 2025).

• CPI inflation: 3.8% year-on-year (September 2025).

• Indicative SONIA swaps: ~2-yr 3.49%, 5-yr 3.55% (last published 21 Oct 2025).

As at 1 November 2025, London

If you’d like to understand how these rules and market moves apply to your circumstances, speak to a qualified mortgage adviser at Mortgage One for mortgage guidance tailored to seafarers: www.mortgageonefinance.co.uk

The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. For tailored advice specific to your circumstances, please contact Mortgage One directly.

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.

FAQs

1. Can I get a UK mortgage if I’m paid in a foreign currency?
   Yes, many lenders will consider it, but they must warn you about exchange-rate risk and show the impact of a 20% sterling move. Affordability may include FX “haircuts” to income.

2. Does Seafarers’ Earnings Deduction help with mortgage approval?
   SED is a tax relief, not a lending rule. It can support the narrative of consistent offshore work, but lenders still assess affordability, credit history and documents. At Mortgage One we really understand the nuances of this and how to best improve your application.

3. Which documents will lenders ask for?
   Typically contracts, 3–6 months’ payslips/remittances and matching bank statements; sometimes P60s. International/expat units publish currency matrices and eligibility. Requirements vary by lender. Santander+1

4. How do current rates affect seafarer mortgages?
   Fixed rates reflect SONIA swap levels and Bank Rate expectations. With Bank Rate at 4.00% and swaps mid-3s (late Oct), some pricing has eased vs early 2024, but criteria—not just rates—often drive outcomes for seafarers.

5. What if my income is a day rate and varies by voyage?
   Lenders can average variable income over a period and may request longer evidence. Clear documentation and UK credit footprint help. Every case is different and we are highly experienced in making it fit for all different types of contract. 6/6 - 5/1 etc.