1st July 2025

Using a Mortgage Broker vs Going Direct: Which Works Best for Foreign Nationals in the UK?

Introduction

Securing a UK mortgage as a foreign national involves navigating specific challenges—from proving income to understanding UK credit history and compliance standards. Whether to go through a mortgage broker or apply directly to a lender can significantly affect your success, costs, and timelines. In this article, we'll explore both paths, highlighting key considerations for foreign nationals, while ensuring compliance with FCA regulations.

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Understanding Your Mortgage Options

What a Mortgage Broker Does

A mortgage broker acts as an intermediary between you and various UK lenders. They gather information on your financial profile, source suitable lenders, and guide you through documentation and the application process.

Benefits for foreign nationals include:

• Access to specialist lenders: Many brokers have connections with lenders experienced in dealing with mortgages for foreign nationals living in the UK.
• Simplified paperwork: Brokers will take care of all the paperwork as foreign nationals are new to the UK and may not be aware of all the documents to be presented.
• Better options: Sometimes brokers have access to intermediary exclusive deals which you may not be able to obtain if you directly approach lenders.

Going Direct to a Lender

Key benefits are:

Applying directly means dealing one-on-one with a bank, building society, or online lender.

• No broker fees: You may avoid broker fees, though lenders may charge application or underwriting fees. However, there are brokers who do not charge any fees too.
• Direct communication: You deal directly with the lender and can clarify lender-specific requirements.

What Makes a Difference for Foreign Nationals?

Product Range and Eligibility

• Broker route: If you approach a whole of market broker, they typically have access to almost all the products in the market. This enables them to compare costs between various products and recommend the most suitable product to you.
• Direct route: Approaching a lender directly will result in the opportunity cost of missing out on some of the cheaper deals out there in the market.

Fees and Total Costs

• Broker fees: Typically £500 - £1,500 upfront or rolled into the mortgage. However, there are brokers who do charge any fees for the advice or the process as they get paid commissions by the lenders directly.
• Direct costs: Could include valuation fees, application fees, legal fees, etc. Always ask for a full breakdown via a Key Facts Illustration (KFI).

FCA Compliance and Transparency

Cost and Value Transparency

Under FCA rules, brokers and lenders must act in your best interests, clearly explain costs, and provide an annual percentage rate (APR) with all relevant fees included.

Treating Customers Fairly

The FCA requires that both brokers and lenders treat customers fairly, including providing adequate information on product suitability, early repayment charges, and potential currency risks for overseas borrowers.

Practical Tips / Recommendations

1. Engage a broker specialising in foreign national mortgages. They understand complex documentation requirements and lender relationships.
2. Obtain formal mortgage affordability assessments from both broker and direct lender. Compare rate, fees, and eligibility across the board.
3. Clarify fee structures upfront. Request a Key Facts Illustration (KFI) listing upfront and ongoing charges, broker fees, and whether these are folded into the mortgage.
4. Check lender eligibility. Some lenders cap loan-to-value ratios or require UK residency status—confirm this early.
5. Monitor servicing standards. Good communication—particularly for overseas borrowers - is vital. Ensure your broker or lender has a dedicated international team.
6. Review all documents thoroughly. Check all terms, including interest rate recalculation, floor or collar rates, and early repayment penalties.

Frequently Asked Questions (FAQ)

Can foreign nationals get a UK mortgage?

Yes - with valid visa or residency status, adequate deposit (typically 10 - 25%), proof of income, and suitable lender criteriaYes—with valid visa or residency status, adequate deposit (typically 10 - 25%), proof of income, and suitable lender criteria.

Is it more expensive to use a mortgage broker?

Not always - there are mortgage brokers who offer free mortgage advice.

How long does the process take?

From application to completion, expect 8 - 12 weeks. Brokers may streamline the process through lender relationships.

Do foreign nationals need a UK credit history?

Yes, typically banks would like to see at least 6 months of credit footprint in the UK when applying for a mortgage. However, consideration for a mortgage would be upon meeting the relevant lending criteria.

FCA Warning: This blog is for informational purposes only and does not constitute financial advice. The FCA requires us to remind consumers that mortgage terms can vary and that early repayment charges, and other factors may apply. Always seek personalised advice based on your individual circumstances.

We're an FCA-regulated mortgage advisory firm, experienced in helping international and foreign-national clients navigate UK mortgage options with clarity and confidence with no fees charged from the customer.

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