- Tier 1 & 2 Visas
- Ancestry & Entrepreneur
- Spouse Visas
- No Minimum Time in UK
- No Minimum Time on Visa
- From 5% Deposit
- Foreign Currency Income
Mortgages for Foreign Nationals
The rules and criteria for foreign nationals obtaining a mortgage in the UK are complex. Typically, customers using our service tell us they have spoken to their bank or other mortgage consultant, only to be let down at the last minute. A number of mortgage lenders provide decisions in principle to foreign nationals, but when it comes to the full underwrite, soon realise that they pose very different challenges. This can lead to both disappointment and the inevitable wasted costs and energy on both sides.
We deal with numerous foreign nationals on a visa, looking to buy their first home. On contact, they often tell us they are nervous about the whole finance process. There are thousands of loan products being advertised nationally but they appreciate they may not meet the criteria for the majority of the advertised interest rates. They share with us that they are anxious they will get caught out by the small print.
Many foreign nationals we speak to want to own their own home, or take advantage of the right to buy and see it as a more cost effective option to renting. In addition they understand that on becoming a UK homeowner, their eventual entitlement to permanent rights to reside may be strengthened.
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The also appreciate that the terms of any Visa are not indefinite and we will need to assess how long remains from the outset.
As a UK specialist mortgage company, we understand that buying a home, for most people including skilled migrants, is the biggest single investment they make. It therefore pays to seek proper professional advice from an expert.
On making contact, we will assess your situation and the terms of your visa, be it a skilled migrant visa or other form of permissions. We will look at your time here in the UK and consider both the family and employment ties you have secured. We will look at the time remaining on your Visa and also consider the long term affordability of the mortgage, based not on interest rates today, but also those longer term. This will make sure you can fully satisfy the lender of your financial commitments and can meet the repayments and monthly instalments.
We will seek to produce you a formal decision in principle from the finance provider and this document is important, given it will allow you to show it to estate agents, will clearly let them know you are serious and in the market to purchase a new home. It will officially indicate your ability to obtain credit and provide you, the customer, with the assurance, that once the flat or house purchase is agreed, you are able to complete on the transaction.
The decision in principle will be accompanied by a helpful detailed loan illustration which provides full details on the set up costs and charges of the finance. This will include not only the initial interest rate, but future interest rates, lender arrangement fees and any penalty periods. We will also be able to indicate to you upfront, the incidental liabilities and costs such as valuation and survey charges, solicitor’s fees and stamp duty. It is these charges, which can often be hidden when comparing mortgage products and full disclosure, allows you to make an informed choice.
We understand that foreign nationals in the UK, trying to obtain a foot on the property ladder, may not necessarily have a substantial deposit. Even if you have a modest deposit we may be able to assist.
Many customers tell us they have previously experienced difficulty when money, being used for the deposit, is abroad in a foreign bank account. There are a range of UK anti-money laundering regulations and often, foreign nationals run into difficulty when these regulations are applied. Lenders understandably, often want clients to have been saving regularly from income sources derived from the UK and these funds may need to be evidenced in a UK bank account.
We are specialists in this area and will be able to advise on your first telephone call to us as to whether you will fall foul of the regulations or whether we can provide an appropriate, lawful explanation to the lender, to accept the income coming in from abroad. We are typically successful in these circumstances.
Types of Visa
There are a number of visas issued in the UK. The Tier 1 visa, previously known as the High Skilled Migrant Visa is often granted to professionals or those with a skill-set in high demand. This allows the holder to work anywhere in the UK.
Tier 2 visas are usually employee sponsored visas and the rights under such an arrangement are more limited. In the event the holder was made redundant or was unemployed, the rights to reside in the UK expire as they are dependent on the employer effectively sponsoring the worker. It is not uncommon for those on Tier 2 visas to experience more difficulty in arranging finance and we are specialists in assisting Tier 2 visa holders.
We also find it is not uncommon for one partner to have a spousal visa or a dependent relative visa. These are also problematic as they are conditional upon the other partner maintaining visa rights and home loan lenders, when making a lending decision, have to build any uncertainty into their finance decision.
We have a particularly specialism for those on entrepreneurial visas and those who may have right to reside through an ancestry visa.
As UK experts in this area, whatever the type of visa you hold, you can be rest assured that we will likely have helped someone in similar circumstances. We use our relationship with the lender to talk through the full circumstances and position the application in order to obtain maximum success. In order to do this, you will need to assist us with full details of your employment, including not only your income, but also an up-to-date CV, your potential future career path and long term intentions to remain here in the UK.
As foreign national mortgage experts we have helped many clients achieve their goal of owning their own home. If you work and live here, we may be able to assist. Call us now to discuss your requirements or simply complete the online enquiry form and One of our specialist consultants, will make contact.