A survey, carried out by Censuswide found that 93% of brokers had advised at least one non-UK resident client in the past five years, underlining continued demand from international buyers for UK property

Most mortgage intermediaries now find it difficult to arrange finance for non-UK residents, new research suggests, with lender appetite and currency risk among the main obstacles.

A survey, carried out by Censuswide on behalf of prime London lender Butterfield Mortgages, found that 93% of brokers had advised at least one non-UK resident client in the past five years, underlining continued demand from international buyers for UK property.

Almost all respondents (98%) said sourcing finance for overseas borrowers was challenging. Of these, 11% described it as “extremely” challenging, 35% as “very” challenging, 28% as “moderately” challenging and 25% as “slightly” challenging.

When asked to identify the main barriers, 34% of brokers cited a limited number of lenders prepared to deal with international borrowers. A further 33% highlighted concerns about exchange rate movements over the life of the loan, while 28% pointed to difficulties in verifying income and assets held overseas.

Other issues raised included additional due diligence requirements compared with UK-resident cases (26%), lack of a UK credit file (23%), differing legal and regulatory frameworks (23%), complex or unfamiliar tax arrangements in borrowers’ home jurisdictions (22%), limited borrower understanding of the UK mortgage process (22%) and time zone differences between parties (18%).

Clearly, there remains high international demand for UK property investments, but the availability of suitable mortgage products is a major sticking point for brokers working with overseas clients, said Alpa Bhakta, chief executive of Butterfield Mortgages.

She said: Lending to non-UK residents requires a high level of expertise, not to mention the right products and a willingness to embrace the additional due diligence it involves. Lenders that are able to take on the challenge will need to ensure brokers and overseas buyers – who remain a vital part of the UK’s property market, especially in prime central London – can access the finance they need, irrespective of how complex their case may be.