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 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 2025. September inflation printed 3.8% year-on-year. Markets are watching the next Monetary Policy Committee meeting for signals on the path ahead.

• SONIA swaps: Lenders typically price fixed deals off SONIA interest-rate swaps. Indicative late-October levels for 2–5 year swaps were in the mid-3% range, supporting gradual easing in fixed-rate pricing, though daily market moves can alter lender costs.

Lender rules that matter for seafarers

• Foreign currency income: If you’re paid in USD, EUR or another currency, lenders must warn you about exchange-rate risk and show how a 20% sterling move could impact affordability. Some lenders apply “haircuts” or buffers to account for this.

• Evidence and stress testing: Expect to provide contracts, recent payslips or remittance advices, and bank statements showing salary credits while you’re at sea.

• Who may consider you: Lenders’ criteria vary. Some accept applicants working abroad or earning in foreign currency; others only assess sterling-paid income.

• Seafarers’ Earnings Deduction (SED): SED can reduce your UK income tax if you meet HMRC’s rules, but it doesn’t guarantee lender acceptance. Consistent employment history remains important.

Practical steps to strengthen a seafarer mortgage application

• Prove stability of income: Keep copies of employment contracts (showing day rate or salary), 3–6 months’ payslips/remittances, and corresponding UK bank statements.

• Address the FX angle early: If paid in a foreign currency, discuss how exchange-rate changes could affect your affordability and repayments.

• Maintain UK credit footprint: Keep a UK address, on-time payments, and an active current account to support credit scoring.

• Pick the right product length: If your income varies, a longer fixed period can smooth cash flow; if currency or contract changes are likely, a shorter fix can add flexibility.

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

• First-time buyers: With Bank Rate at 4.00% and swap rates in the mid-3s, entry-level fixed rates may be more manageable than earlier in 2024, though foreign-currency income can limit borrowing.

• Remortgagers: If your current fix is ending, start paperwork early—especially proofs from multiple voyages.

• Buy-to-let (some not FCA-regulated): Rental calculations and stress tests differ from residential; it’s important to maintain prudent buffers.

Key numbers (indicative; subject to change)

• Bank Rate: 4.00% (since August 2025)

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

• Indicative SONIA swaps: ~2-yr 3.49%, 5-yr 3.55% (October 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. Requirements vary by lender.

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.