How Americans Can Get a UK Mortgage in 2025

The UK remains one of the most attractive international property markets for American buyers. London’s blend of heritage, global connectivity, and investment stability has long drawn US interest, while areas beyond the capital — from university cities like Oxford and Cambridge to rural retreats in the Cotswolds — offer compelling lifestyle and investment options.

However, Americans face a unique set of challenges when seeking UK mortgage finance. These hurdles, from FATCA compliance to credit history gaps, can be significant enough to deter some buyers — but with the right advice and lender relationships, they are far from insurmountable.

In this guide, we break down the main barriers US citizens encounter, explain the lender landscape, and show how to approach your mortgage application to secure the most competitive terms in 2025.

The Key Challenges for US Buyers

While every overseas buyer faces extra scrutiny compared to a UK resident, Americans are subject to some additional complexities. The first is the Foreign Account Tax Compliance Act (FATCA). This US regulation obliges foreign financial institutions to report on accounts held by US taxpayers. For many mainstream UK lenders, this represents a compliance headache they are unwilling to take on — so they simply avoid lending to US clients.

Then there is currency and income verification. Many Americans earn in USD but need to borrow in GBP, creating a currency mismatch that lenders must assess. Some will apply a “haircut” to income earned in a foreign currency, reducing the amount they’ll recognise for affordability purposes.

UK credit history gaps also pose problems. Without an established UK credit footprint, many high street banks will not consider an application — even for wealthy individuals.

Finally, deposit requirements can be higher for overseas buyers, with Americans often asked to put down 25–40% of the property’s value.

FATCA: The Biggest Hurdle for US Clients

FATCA compliance is the single largest barrier to entry for American buyers. While FATCA’s goal is to combat tax evasion by US persons holding assets abroad, its reporting requirements have led many UK banks to restrict lending to US clients altogether.

The good news is that specialist mortgage lenders and certain private banks have invested in the systems and expertise needed to comply. These institutions work regularly with US clients and understand both the legal and practical steps required.

If FATCA is the main reason your mortgage application was rejected by a mainstream bank, it’s often not a reflection on your financial strength — it’s about the lender’s internal policy.

Currency and Income Verification Issues

Currency mismatch is another common obstacle. Suppose your income is entirely in USD, but your mortgage is in GBP. Lenders will consider the potential volatility of the USD/GBP exchange rate. If they believe currency risk is high, they may reduce the income they recognise for affordability — sometimes by 20–25%.

Some private banks offer an elegant solution: they can lend in USD or allow currency switches during the loan term. This can protect you from exchange rate shocks and give you greater control over repayments.

For more insight into how lenders approach this, see our blog on Currency Risk and Income Verification: Challenges of Foreign Income.

The UK Credit History Gap

A strong US credit score will not automatically translate into UK mortgage approval. Most mainstream UK lenders require applicants to have an active UK credit profile, ideally with at least three years of history. Without it, they may decline your application outright.

However, specialist and private bank lenders take a more holistic view. They will evaluate your overall wealth, global assets, and proven income sources. If you can demonstrate financial stability, these lenders can often bypass the need for a UK credit record.

We’ve covered practical steps to strengthen your application in Overcoming UK Credit History Gaps: Tips for Expat Applicants.

Higher Deposit Requirements for US Buyers

In 2025, most US buyers should expect to put down a deposit of at least 25% of the property’s purchase price. For higher-value properties, especially in Prime Central London (PCL), the deposit requirement can rise to 35–40%.

That said, private banks can sometimes offer higher loan-to-value ratios — particularly if you agree to place assets under management (AUM) with them. This arrangement can work well if their investment strategy aligns with your long-term objectives.

Choosing Between Private Banks and Specialist Lenders

When selecting a lender, it’s not just about the rate — it’s about the fit for your circumstances.

Private banks often suit clients purchasing property worth £3m+ in areas like Mayfair, Knightsbridge, or Chelsea. They are adept at structuring loans for complex income profiles, can work in multiple currencies, and may offer interest-only options. The trade-off is that they often require you to place significant assets under management.

Specialist lenders, on the other hand, are better for buyers who prefer to keep assets with their existing wealth managers, are purchasing at lower price points, or have unusual property types or investment structures. They also tend to move faster than private banks.

Our detailed comparison in UK Mortgage Options for Americans Buying in London covers the pros and cons of each.

Case Study: Private Bank Solution

A US-based investment banker wanted to buy a £5m townhouse in Kensington, earning a high USD salary and significant annual bonuses. A private bank agreed to provide a USD-denominated interest-only mortgage at 70% LTV, avoiding currency haircut issues, in exchange for £1.5m placed under management.

Case Study: Specialist Lender Solution

An American tech founder purchasing a £2m Notting Hill flat preferred not to move any assets from their US-based advisers. A specialist lender offered a GBP mortgage at 65% LTV with a competitive fixed rate, completing the process in under eight weeks.

How Willow Can Help

At Willow Private Finance, we act as a bridge between US buyers and the UK’s most suitable lenders. Our experience includes:

• Navigating FATCA requirements without delays
• Structuring applications to overcome UK credit history gaps
• Advising on currency risk mitigation strategies
• Negotiating deposit terms and higher LTVs where possible

We work closely with your tax and legal advisers to ensure the mortgage process aligns with your wider financial plan.

📞 Start Your UK Property Journey With Expert Guidance

Buying in the UK as an American is achievable — but it requires the right lender and the right presentation of your case.

📞 Book your confidential consultation today

We’ll connect you with lenders experienced in working with US citizens and guide you from first enquiry to completion.