UK Mortgage Deposits and Stamp Duty for Iranian Buyers: Real Costs Explained

Loan-to-value (LTV): the number that sets your deposit

Lenders express how much they will lend as a percentage of the property’s value. This is the loan-to-value ratio, or LTV. If a lender offers a 75% LTV mortgage, it will lend up to 75% of the price, and you provide the remaining 25% as a deposit.

The lower the LTV, the less risk for the lender, which generally means more lenders will consider you and rates may be better. For applicants with international profiles, maximum LTVs on offer are often lower than for domestic buyers.

How much deposit do Iranian and other foreign buyers need?

There is no single figure. It depends on your status, the lender, the property and whether you are buying a home or an investment. Published guides give a useful range:

• UK residents with foreign nationality are often quoted a minimum of around 15%, according to consumer guides to foreign-national mortgages.
• Non-residents buying from abroad commonly need 25% or more, and some profiles need considerably more.
• Brokers who specialise in international clients often describe maximum LTVs for complex cases in the region of 60 to 75%.

Treat these as signposts, not promises. A broker can tell you the current position for your exact profile. Our main mortgage guide explains how lenders assess an Iranian applicant overall.

Stamp duty for Iranian buyers

Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland. Scotland and Wales have their own taxes. Three layers can apply to the same purchase.

1. Standard residential rates

The standard rates are charged in bands on the part of the price within each band. Check the current bands on GOV.UK, as thresholds change.

2. Higher rates for additional properties

If you will own more than one residential property after the purchase, higher rates apply. HMRC’s guidance on buying an additional residential property sets out the current figures. From 1 April 2025 they are 5% on the portion up to £125,000, 7% from £125,001 to £250,000, 10% from £250,001 to £925,000, 15% from £925,001 to £1.5 million and 17% above £1.5 million.

3. The 2% non-UK resident surcharge

Since 1 April 2021, buyers who are not UK resident for SDLT purposes pay an additional 2% surcharge on residential purchases in England and Northern Ireland. It applies on top of the other rates. Broadly, an individual counts as non-UK resident if they have not been in the UK for at least 183 days in the 12 months before the purchase, but the exact test has conditions, so check it on GOV.UK or ask your solicitor. In some circumstances, if you later become UK resident, you may be able to reclaim the surcharge, so ask your solicitor about this at the outset.

Worked examples (illustrative)

The examples below use the bands in force at the time of writing for a £400,000 purchase. They are illustrations, not tax advice. Use the official HMRC calculator and confirm with your solicitor.

The difference between the first and last row, £28,000 on the same house, is why you should know your residency position and your plans for other properties before you make an offer.

Other costs to budget for

• Legal fees. Your solicitor or conveyancer’s fee, plus Land Registry fees and searches. Ask for a written quote.
• Valuation. The lender’s valuation, sometimes included free and sometimes charged.
• Survey. An independent survey is strongly recommended and, for older or unusual properties, essential. A civil engineering background, as we have, helps interpret the findings.
• Lender fees. Arrangement or product fees, which can be paid upfront or added to the loan.
• Broker fees. Some brokers charge a fee. Always ask for it in writing before you proceed.
• Currency and transfer costs. Exchange margins and provider fees on moving the deposit. See our money transfer guide.
• Insurance. Buildings insurance is usually required from exchange.
• Moving, furnishing and initial repairs. Often forgotten.

A simple way to build your budget

1. Decide the maximum price you would consider.
2. Use the likely LTV to work out the loan and the deposit.
3. Add SDLT using the HMRC calculator for your residency and plan.
4. Add legal, survey, valuation, lender and transfer costs.
5. Add a 5 to 10% cushion for currency movements and surprises.

The total is what you need to be able to evidence and move. If it is more than you can, adjust the target price rather than the evidence.

How much can you borrow?

Alongside the deposit, lenders cap borrowing by income. A common rule of thumb quoted by MoneyHelper is that lenders typically lend up to about four and a half times annual income, and that most people are offered less. They also test whether you can afford repayments if interest rates rise and review your regular outgoings. For overseas income the lender may apply a discount to account for currency movements, so ask your broker how your income will be treated.

The right question is therefore not only “how much deposit do I have?” but also “how much can I borrow, and how large a property does the two together support?”

Typical fees and why you should compare

Fees add up. MoneyHelper’s guidance on buying and moving costs suggests that fees on buying a home, excluding the deposit and stamp duty, can run to several thousand pounds, and that solicitor and conveyancer fees can range widely, so getting several written quotes is sensible. Figures change, so use them as a guide only and ask each provider for a written quote that lists everything.

When you compare mortgage deals, look at the overall cost, not just the interest rate. A deal with a low rate and a high fee can cost more than one with a slightly higher rate and no fee, depending on the loan size and how long you keep it.

Currency planning: a worked example

Suppose your target deposit is £100,000. If you convert from another currency, the amount you start with depends on the rate and the fees you pay on the day. A small rate movement can change the pounds you receive by thousands.

• If the rate moves 3% against you before you convert, a £100,000 deposit becomes about £97,000, a £3,000 shortfall.
• If the lender needs the full £100,000 to hold its LTV, you have to find the difference or reduce the price.

This is why a cushion matters, and why agreeing the conversion approach with your adviser early is helpful. Do not leave currency decisions until the day before exchange.

How 23rd Homes helps

We work out your realistic budget with you on the free call, based on your residency, deposit and plans. We then introduce FCA-authorised brokers who can confirm current LTVs and rates, and FCA-authorised money transfer firms for the deposit. Book your free 15-minute call.

Frequently asked questions

This article is general information, written on 11 November 2026. Lender criteria, tax rates and sanctions rules change, so we check the current position with you on your free call.