Purchasing UK property through an offshore company remains a common strategy among international investors, family offices, and high-net-worth individuals. But the lending landscape around offshore structures has changed significantly in recent years. In 2025, lenders are more cautious, compliance checks are more detailed, and banks have shifted their appetite depending on jurisdiction, ownership transparency, and the source of wealth.

Despite that, offshore companies continue to play an important role for clients with global wealth structures. Many international buyers hold investments and assets in jurisdictions such as the British Virgin Islands, Jersey, Guernsey, the Cayman Islands, Hong Kong, the UAE, or Singapore. These structures may be used for succession planning, commercial activities, tax efficiency in their home jurisdiction, or to consolidate global investments.

Willow Private Finance regularly advises clients who are purchasing through offshore special purpose vehicles (SPVs), family investment companies, or holding structures. In many cases, these buyers also have international income, multi-currency earnings, or significant assets held overseas—topics we explore in related guides such as mortgages for international buyers in 2025. For high-value clients, offshore structures can be part of a broader wealth strategy rather than a tax-driven decision.

This guide explains how lenders assess offshore companies in 2025, the documentation required, the risks banks consider, and the practical challenges buyers face when using such structures for UK property purchases.

Why Offshore Companies Are Still Used in 2025

While the UK government has introduced more transparency requirements over the past decade, offshore companies continue to make sense for certain buyers. For many international clients, their business interests, investment holdings, or trusts are already consolidated into offshore entities. Buying UK property through the existing structure can simplify internal reporting, preserve succession plans, or support long-term asset protection.

For others, an offshore SPV allows separation between personal assets and property investment activities. This is particularly relevant for family offices and international investors acquiring multiple units or commercial property as part of a wider global portfolio.

It is important to note that tax laws and reporting rules have evolved. The UK’s register of overseas entities requires disclosure of beneficial owners, and lenders now require enhanced documentation. However, banks are willing to lend to offshore entities as long as ownership is transparent, the structure has a clear commercial purpose, and the source of wealth is well evidenced.

In 2025, the primary question lenders ask is not “Is the company offshore?” but “Is the structure legitimate, transparent, and aligned with regulatory requirements?”

How Lenders Assess Offshore Companies in 2025

Underwriting for offshore companies is more detailed than for UK entities. Lenders take additional steps to understand the company’s purpose, ownership structure, financial position, and regulatory background.

The first thing lenders examine is the jurisdiction. Banks categorise offshore jurisdictions into three broad groups: highly acceptable, selectively acceptable, and restricted. Jurisdictions with strong regulatory frameworks—such as Jersey, Guernsey, Luxembourg, Singapore, or Hong Kong—tend to be viewed favourably. Structures in more opaque or higher-risk jurisdictions may require more documentation or be declined entirely.

Next, lenders analyse the beneficial ownership. This requires full transparency, including certified identification, proof of wealth, evidence of income, and corporate documents outlining ownership percentages. Private banks typically require more detailed information, especially where lending exceeds £3–£5 million.

Lenders also review the company’s financials, even if the entity has no trading history. Directors’ guarantees are common. Some banks require personal guarantees from beneficial owners, while others rely on asset pledges or strong liquidity.

Finally, lenders assess economic purpose. If the company was created solely for the acquisition, lenders still need to see that the purpose is legitimate, correctly documented, and compliant with reporting obligations under UK law.

Mortgage Structures Available to Offshore Companies

In 2025, several mortgage structures are available to offshore entities, though the options depend heavily on lender appetite and jurisdiction.

Private banks remain the most active players. These institutions are comfortable lending to offshore structures where the client maintains an existing wealth relationship, pledges additional assets, or meets high-net-worth criteria. Private banks can offer interest-only lending, multi-currency facilities, or mortgages supported by investment portfolios—a subject explored in more detail in our guide to using investment portfolios to buy UK property.

Specialist lenders also provide mortgages to offshore SPVs, particularly for investment properties. They tend to focus more on the asset and rental performance than on the overall wealth profile, though beneficial ownership transparency is still required. Rates are typically higher than private-bank options but come with more flexibility around structure and jurisdiction.

High-street banks are the least active in this area. While some will lend to Jersey or Guernsey companies, most do not support international SPV structures due to compliance and regulatory burdens.

Borrowing terms vary widely. LTVs for offshore companies typically range from 60% to 75%, though private banks may offer more flexible terms when the borrower pledges additional assets or keeps liquid wealth under management. For commercial acquisitions or multi-unit properties, terms are more bespoke and can depend on the stability of rental income.

Compliance Requirements and Documentary Expectations

Borrowers using an offshore company must be prepared for a more extensive documentation process. Lenders need proof of identity and address for all shareholders, directors, trustees, or beneficiaries linked to the structure. They also require certified constitutional documents, registers of members, corporate resolutions, and proof of good standing.

Source-of-wealth documentation is especially important. Lenders want to understand how the funds used for the purchase or deposit were generated. This may involve bank statements, investment summaries, business ownership documents, or audited accounts outlining historic income.

If the offshore entity is part of a larger trust or family holding structure, lenders may request trust deeds, letters of wishes, or documentation showing the purpose and beneficiaries of the arrangement. These requests are standard and not a reflection of suspicion—banks simply require complete records for regulatory compliance.

Banks also carry out enhanced AML and KYC checks. These steps take time, so buyers using offshore structures should expect longer processing timelines than UK-based applicants.

Challenges Buyers Face When Using Offshore Companies

Using an offshore company to buy UK property offers strategic advantages, but it also brings challenges. The first challenge is lender appetite. While many private banks are comfortable with offshore structures, not all lenders are. This limits the borrower’s choice and may affect pricing.

Second, the compliance process is more intensive. Gathering corporate documents, notarised certifications, and records from foreign jurisdictions can be time-consuming. Delays are common, especially if documents need to be updated or translated.

Third, borrowing costs may be higher. Some lenders apply pricing premiums to offshore borrowers due to additional due diligence obligations. Interest rates, arrangement fees, and legal fees can be higher than for UK entities.

Another challenge is bank policy around management of wealth. Some private banks require the beneficial owner to move assets under management before lending. While this may unlock better terms, it may not align with the client’s existing investment strategy or advisor relationship.

Finally, tax rules for offshore companies buying UK residential property have evolved. While this article does not provide tax advice, buyers should seek specialist guidance regarding annual tax on enveloped dwellings (ATED), inheritance tax exposure, and reporting obligations.

Smart Strategies Used by Offshore Buyers in 2025

Successful buyers using offshore companies tend to prepare early and structure their applications with lender expectations in mind. One common strategy is establishing a clean, purpose-built SPV with transparent ownership and clear corporate documentation. This reduces lender anxiety and speeds up underwriting.

Another strategy involves pledging liquid assets or investment portfolios to strengthen the lending profile. As demonstrated in our guide on asset-based borrowing, private banks often offer highly competitive mortgages when borrowers provide portfolio security, which can offset the perceived risks of an offshore SPV.

Borrowers also increasingly adopt hybrid structures: using an offshore company to own the asset but supporting the application with personal guarantees or additional wealth evidence. This gives lenders greater comfort and often results in better terms.

The most effective strategies begin long before the mortgage application itself. By preparing corporate documentation, updating registers, and aligning the structure with lender expectations, offshore buyers can significantly reduce underwriting friction.

Case-Type Insight: A Typical Offshore-Buyer Scenario

A common example involves an international family office purchasing a London investment property through a Jersey SPV. The beneficial owners may live in the Middle East, Asia, or Europe, hold wealth in global portfolios, and generate income across multiple jurisdictions.

A private bank may offer a multi-currency mortgage supported by the strength of the family’s investment portfolio rather than income alone. The structure might include personal guarantees, a modest asset pledge, and a long-term interest-only repayment schedule.

Alternatively, a specialist lender may provide an investment mortgage based primarily on rental income, offering a pragmatic option without requiring the family to move assets under management.

These scenarios highlight how varied—and flexible—the lending landscape is for offshore buyers in 2025.

Outlook for 2025 and Beyond

Lending to offshore companies is expected to remain strong into 2026, driven by continued demand for UK property from international investors. Lenders are becoming more sophisticated in assessing offshore structures, and private banks are expanding their asset-backed solutions.

We expect greater emphasis on transparency, enhanced compliance, and integration between property lending and private wealth management. Offshore buyers who prepare early, demonstrate clear ownership, and work with specialist brokers will secure the best terms in the evolving landscape.

How Willow Private Finance Can Help

Willow Private Finance specialises in advising international and high-net-worth clients purchasing UK property through offshore companies. We work with private banks, wealth-focused lenders, and specialist institutions that understand complex corporate structures and multi-jurisdictional arrangements.

Our expertise spans SPV lending, private-bank underwriting, global wealth analysis, and asset-based borrowing strategies. We coordinate complex documentation, anticipate lender requirements, and negotiate bespoke terms that align with each client’s wealth structure and long-term objectives.

Whether your structure is based in Jersey, Guernsey, the BVI, Dubai, Hong Kong, or Singapore, we can help position your application effectively across the whole market.

Frequently Asked Questions

Q1: Do UK lenders still accept offshore companies in 2025?
Yes. Many private banks and specialist lenders are comfortable with offshore structures, provided ownership is transparent and the jurisdiction meets regulatory standards.

Q2: What jurisdictions are most accepted by UK lenders?
Jersey, Guernsey, Luxembourg, Singapore, and Hong Kong are generally well-regarded. Acceptance varies across lenders, and some jurisdictions face stricter scrutiny.

Q3: Do I need a personal guarantee when borrowing through an offshore company?
Often, yes. Many lenders require personal guarantees from beneficial owners unless the structure is backed by significant assets or held within a large family office.

Q4: Is it harder to get a mortgage through an offshore company?
The process involves more documentation and compliance checks, but specialist lenders and private banks are experienced in handling offshore SPVs.

Q5: Are interest rates higher for offshore companies?
Rates may be slightly higher due to enhanced compliance requirements, though private banks can offer competitive terms when assets or liquidity are pledged.



Q6: Can offshore companies buy both residential and investment property?
Yes. Offshore entities commonly acquire both, though the lending structure and documentation required will differ depending on the property type and lender.

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