Seafarer Mortgages

If you work as a seafarer and dream of owning a property, you might wonder about the specific requirements for Seafarer Mortgage. We’ll explain all you need to know about seafarer mortgages, including eligibility criteria and why consulting a specialist broker like MortgageTek, can significantly increase your chances of securing the best possible rates.

 What is a Seafarer Mortgage?

Seafarer mortgages are tailored for professionals in the maritime industry, offering financing solutions that cater to their unique needs. These mortgages are similar to standard residential mortgages, with slight variations to accommodate the nature of seafarers’ work. 

Who Qualifies as a Seafarer?

A seafarer is anyone who works on a seagoing ship, including masters, crew members, self-employed contractors, shop employees, and entertainers. A seagoing ship is defined as any vessel engaged in international voyages or domestic journeys from a UK port, with a gross tonnage exceeding 500.

Understanding the Seafarers Earnings Deduction (SED)

In 2012, seafarers’ unions negotiated a unique tax provision with HM Revenue and Customs (HMRC) called the Seafarers Earnings Deduction (SED). This special regulation allows seafarers to claim a complete exemption on their foreign earnings. By doing so, they can maintain UK residency and eligibility for non-expatriate mortgages. However, navigating the complexities of claiming SED can be challenging, especially when dealing with mortgage lenders and the tax office.

Factors Affecting Mortgage Prospects for Seafarers

Seafarers often receive tax-free earnings in foreign currency, but they are still required to complete an annual UK tax return and claim the SED exemption. To be eligible for a non-expatriate mortgage, seafarers must provide evidence of spending less than 183 days in the UK during a tax year. Additionally, they need to demonstrate UK residency by having a home where they can stay for 91 consecutive days, using it as their postal address and registering to vote.

Insurance Considerations for Seafarers

Once seafarers become homeowners, they encounter unique challenges regarding home insurance. Extended periods of property vacancy can invalidate insurance policies. However, seafarers can avoid this pitfall by providing evidence of nearby family or friends who can check on the property regularly during their absence. Additionally, seafarers may face higher premiums for life insurance and critical illness coverage due to perceived occupational risks.

 How to Get a Seafarer Mortgage

Securing a seafarer mortgage follows a slightly different process than traditional mortgages. Seafarers must gather all their income and tax information and be prepared to prove their residency. Consulting with a MortggaeTek the mortgage broker who specializes in seafarer borrowers, is highly recommended, as we have the expertise and network of Lenders to navigate the intricacies of this unique mortgage category.

If you’re a seafarer dreaming of owning a property, securing a seafarer mortgage is within your reach. Take the first step towards your dream home by contacting MortgageTek today at 02038278558. Embark on your journey to homeownership with confidence, and let us support you every step of the way.