What Is A Seafarer Mortgage?
Taking out a mortgage can be difficult enough for people in more typical jobs, but the waters can be even trickier to navigate for those working in the maritime industry on a transport or commercial vessel.
Tricky, but certainly not impossible – and, if you have a job either as a captain, officer, in hospitality or entertainment, or any other similar positions on board a ship, you’ll be pleased to know that there are seafarer mortgages available that can help you climb the property ladder, even if you’re away from UK shores for more than half the year.
Why is it hard for seafarers to access mortgages?
Even if you have a good income and have saved up a solid deposit, you may find it hard to take out a mortgage with some traditional high street lenders amid fears over your tax status and residence.
Depending on your personal circumstances, you may be paid by a company in a different country or even be paid in a different currency, which can be a bit of a deterrent to credit providers. Furthermore, lenders may also be worried that you could default on payments and be difficult to contact when overseas.
But all is not lost and you can look into seafarer mortgages as an alternative if you’re keen to invest in property in the near future.
What makes seafarer mortgages different?
The majority of lenders will consider your residential mortgage application, but you may find that you have to build up a bigger deposit and that you have a higher interest rate.
Furthermore, if you’re trying to take out a mortgage for a second or holiday home, you might find it even harder to take out a mortgage because second properties are viewed as higher risk because of potential defaults on payments in the future.
As for buy-to-let mortgages, these are also considered higher risk than residential products and it’s possible that you will need to have a much higher deposit, typically approximately 25 per cent at least.
Seafarer mortgages are usually for professionals who spend at least six months out of the year in the UK. If you’re overseas for longer than six months, you could be refused a seafarer mortgage, in which case an expatriate mortgage might be a better alternative.
What do you need to provide for a seafarer mortgage?
Much of the documentation you need to provide for a seafarer mortgage will be the same as for other products, including proof of residency, a UK bank account and home insurance.
This latter point is something to bear in mind as you may struggle to take out home insurance, given that your property will likely be empty for months at a time while you’re off at sea. As such, you need to make sure that you have the appropriate insurance in place if your home will be unoccupied for a month or more.
If you’d like any further help or advice, get in touch with the BR Needham team today.
